Springer Nature AG & Co. KGaA

Investor Presentation • Nov 19, 2024

2024 Nine-month Quarterly Statement

November 19th, 2024

This document, which has been prepared by Springer Nature AG & Co. KGaA (the "Company", and together with its subsidiaries, the "Group"), is for information purposes only and must not be relied upon for any purpose. It does not purport to contain all information required to evaluate the Company or the Group and/or its financial position or prospects. This document does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to sell, or a solicitation of an offer to purchase, subscribe for or otherwise acquire, any securities of the Company, nor shall it or any part of it form the basis of, or be relied upon, in connection with, or act as any inducement or recommendation for, an investment decision. The information contained in this document (the "Information") does not constitute legal, accounting, regulatory, taxation or other advice. This document is not directed at, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction. Persons into whose possession this document comes should inform themselves about, and observe, any such restrictions.

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This document includes certain alternative financial measures not presented in accordance with IFRS. These financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing the Company's financial results. They may not be comparable to similarly titled measures presented by other companies, which may be defined and calculated differently, and should not be considered in isolation or as an alternative to financial measures determined in accordance with IFRS. You are cautioned not to place reliance on any non-IFRS financial measures, adjustments thereto and ratios included herein.

OUR PRESENTERS TODAY

Underlying ${ }^{(1)}$ revenue ( $+6 \%$ ) and profit ( $+9 \%$ ) growth vs previous year period ${ }^{(2)}$ are in line with full-year outlook

Revenue growth is driven by Research ( $+7 \%$ ) due to strong performance in the Journals portfolio

Technology and AI initiatives drive performance and deliver value to our communities

Milestone of 1 million SDGs articles and book chapters ${ }^{(3)}$ achieved and on track to publish $50 \%$ of our primary research articles open access (OA) in 2024

Business Update
FRANK VRANCKEN PEETERS CEO

Who We Are

• A leading global research publisher for more than 180 years with 420k+ articles published in 2023
• € 1,853 MM in revenue (74\% Research, 13\% Education, 10\% Health) ${ }^{(1)}$ and $€ 511$ MM in adjusted operating profit ${ }^{(2)}$ in 2023
• 9,000+ employees with global footprint across 40+ countries in 2023

Our Highlights

Purpose Driven - Accelerate solutions to the world's biggest societal, environmental and economic challenges Attractive Markets \& Trends - Growing and resilient markets with tailwinds from OA and AI Leading Position \& Strategy - Trusted market leader in highly attractive segments with clear and proven growth strategy Leader in Technology - Benefitting from tech opportunities to drive operating performance \& growth and deliver value to our communities Exceptional Team \& Network - Experienced management, execution-driven, with a deep bench of talent and extensive external network Strong Financial Track Record - Steady growth, continuous portfolio improvements, margin uplift and deleveraging trajectory

[^0]
[^0]: 1. Revenue share as \% of SN group revenue, incl. revenue from internal customers; contribution from Professional segment (Transport/RSE, Engineering \& Management) accounts for remaining 3\% of group revenue
2. Adjusted operating profit is defined as result from operations before gains/losses from the acquisition/disposal of businesses/investments, amortization/depreciation and impairment on acquisition related assets and exceptional items. Exceptional items relate to effects occurring outside the ordinary course of business or non-recurring effects from acquisition, integration, disposal, restructuring of businesses as well as other exceptional or non-recurring business transactions / events

HELPING TO ACCELERATE SOLUTIONS TO THE WORLD'S URGENT CHALLENGES

We aim to accelerate solutions to the world's urgent challenges by unlocking the potential of open science and research across all disciplines, advancing learning and knowledge, and inspiring all to achieve more in bringing positive change to the lives of generations to come.

Leading Reputation

8.1\% of survey respondents had a favourable perception of Springer Nature; the highest among its peers ${ }^{(1)}$

Springer Nature has published more than 1 million articles or book chapters related to the

SDGs ${ }^{(2)}$ since 2015

1. Based on 2024 survey conducted by the company; \% of respondents saying 7-10 (favourable) on a 0-10 scale ( 0 means you view them extremely unfavourably, 10 means you view them extremely favourably)
2. Sustainable Development Goals

LEADING MARKET POSITION ACROSS SEGMENTS, WHERE RESEARCH CONTRIBUTES 74\% OF REVENUE AND 85\% OF PROFIT IN 2023

STRONG GROWTH DRIVERS ACROSS THE PORTFOLIO

OUTPERFORMING THE JOURNALS MARKET IN THE FIRST 9 MONTHS 2024

Article Market Development, # of articles (in 1,000s)

• Historically $+6 \%$ growth p.a. with solid underlying drivers
• COVID-19 led to a temporary shift in article volumes '20-'22
• 9M 2024 indicates normalization of post-Covid growth rate
  

20142015201620172018201920202021202220232024E
COVID-19

Volume growth of articles 9M '24 vs 9M '23

Springer \&
Full OA

SPRINGER NATURE

TECHNOLOGY - ESPECIALLY AI - TRANSFORMS THE PUBLISHING PROCESS

SINAPP

• Snapp ${ }^{(1)}$ is our competitive submission platform with $1.4+$ MM submissions ${ }^{(2)}$
• Snapp makes publishing faster and is easy to use with high customer satisfaction
• Scaling Snapp allows us to provide a more unified experience for authors, editors and reviewers

Selection of our 65 AI initiatives

$38 \%$ of FTEs in

tech-heavy roles

$85 \%$ of Research revenue

was digital in 2023

1. Springer Nature's Article Processing Platform
2. Since launch, as of June 2024
3. Turnaroundtime

OUR PEOPLE ARE THE DRIVERS OF OUR SUCCESS

Diverse and equitable workplace

Turnover rates well below global benchmarks ${ }^{(1)}$

Award winning employer

We are further strengthening our team

Maria Castresana Chief People Officer

Attract top talent committed to research and scientific progress

Enhance employee engagement, creating a great place to work

Saskia Steinacker Chief Digital Officer

Improve the digital experience across our entire customer journey

Build state-of-the-art tech and Al-driven products and services

Financial Update
ALEXANDRA DAMBECK
CFO

SUCCESSFUL FIRST 9 MONTHS IN 2024 - ON TRACK TO ACHIEVE OUTLOOK

1. Underlying change excludes effects from year-on-year changes in foreign currencies and portfolio
2. Underlying adjusted operating profit margin
3. Financial leverage as of 30 September 2024 adjusted for $€ 200$ MM primary proceeds from IPO
4. Pro-forma financial leverage compared to financial leverage as of 30 September 2023

SPRINGER NATURE

STRONG PERFORMANCE IN RESEARCH

	Underlying Revenue Growth ${ }^{(1)}$	Underlying Adjusted Operating Profit ${ }^{(2)}$ Growth
RESEARCH	- High growth in Full OA and strong growth in Nature journals - Continued decline in print books - Operating leverage and improved product mix - Continued efficiency measures	$+7.3 \%$
HEALTH	- Adjusted pharma advertising budgets - 3 stopped clinical trials	$(1.0 \%)$
EDUCATION	- Growth in key markets like India and Southern Africa - Declined government sales in Mexico - Gross margin gains offset by inflation impact in indirect cost	$+2.6 \%$

		Growth
	Reported
Revenue, $€$ MM	9M '23	9M '24
Research	996	1,035
Health	133	131
Education	206	195
Professional	51	9
Group Consolidation	(2)	(1)
Group Revenue	1,384	1,369

		Growth
	Reported
Adjusted Operating Profit, € MM	9M '23	9M '24
Research	309	326
Health	22	21
Education	37	32
Professional	12	0
Group Adjusted Operating Profit	381	379
\% margin ${ }^{(2)}$	$27.5 \%$	$27.7 \%$

Strong improvement of Free Cash Flow driven by good operating results

Reduced investment and lower one-offs while increased tax and interest payments

Pro-Forma Financial Leverage after IPO proceeds of $€ 200$ MM reduced to $2.5 x$

1. € 1,853 MM adj. for c. € (66) MM Portfolio effects (sale of Transport/RSE + A/E) and c. € 38 MM FX. FX effects are calculated on avg. constant currency rates for the FY' 23 and forward-looking FX for hyperinflation countries
2. € 511 MM adj. for c. € (6) MM Portfolio effects (sale of Transport/RSE + A/E) and c. € (23) MM FX. FX effects are calculated on avg. constant currency rates for the FY' 23 and forward-looking FX for hyperinflation countries
3. Adjusted Net Income is defined as net income before gains/losses from the acquisition/disposal of businesses/investments, amortization/depreciation and impairment on acquisition-related assets and exceptional items