Arnoldo Mondadori Editore

Investor Presentation • Mar 12, 2025

FY 24 Results

Investor Presentation

Antonio Porro – CEO Alessandro Franzosi – CFO

Milan, March 12, 2025

FY24 – Corporate Highlights

Highlights FY24 – Profitability Trend

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FY 24 Highlights

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FY24 Highlights – Results vs Guidance

2024 Dividend Policy

Trade Books Market - FY 24

After years of growth, one of consolidation

Trade Books Market - FY 24

Retail Mkt Share 13.1% (da 12.8% 2023)

Education Books Market - FY 24

Education Books Market FY 24 – Digital penetration

Ministerial Decree n.781 of 27th September 2013 indicates the following three ways

Revenue – FY24

Revenue by Business Area – FY 24

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Adjusted EBITDA – FY 24

Adjusted EBITDA by Business Area – FY 24

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Net Profit FY 24

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2023 reported Net Income was positively impacted by one-off items

A solid financial structure ...

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...thanks to strong cash generation

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Cash Flow FY24

** Others include cash-out/in related to extraordinary taxes and associate charges

Outlook - Strategic priorities

Capital Allocation Strategy & Value Proposition – active investment policy and significant return on capital

Invest in the business

Value enhancing acquisitions

Return to Shareholders

• Development for organic growth and consolidation of the core business focused on Books:
  • ✓ Development of content and digital platform in school textbook publishing
  • ✓ Selective strengthening of the direct Retail store network
  • ✓ Enrichment of the publishing content offering on digital platforms (audio books, Webnovels)
• M&A (Focus Books and Digital Media)
  • ✓ Continued strengthening and expansion of the publishing proposal in both Trade and Education Books
  • ✓ Constant technological and content upgrades of the digital offering
• Growing Dividend Policy

27 * Based on the scope resulting from the extraordinary transactions completed.

Increasing Shareholder Remuneration 50% Ordinary Cash Flow per share Dividend Policy 2025-2026 > DPS previous year +10% CAGR 2021-26: +15%

BACK-UP

Business FY24 – Trade Books

The increase of 6% is divided as follows:

• +2% editorial revenue as a result of the positive performance of digital products E-books/Audiobooks: up by 8.8% compared to 2023
• -21% Electa due to expiry of the concession for the archaeological area of the Colosseum
  • +8.6% Rizzoli International Publications thanks to the consolidation of Chelsea Green Publishing
  • significant increase in third party publisher distribution activities, thanks to Star Shop consolidation

Adj. EBITDA

REVENUE

Adj. EBITDA up by about 5%, thanks to the increase in digital revenue and lower industrial costs (paper costs), which more than offset the reduced profit from museum activities Area profitability remained at 16%

Business FY24 – Education Books

REVENUE

Adj. EBITDA

• Secondary school revenue (80% of the total) fell slightly (-0.9%), due to the decrease in the number of copies sold compared to those adopted
• Primary school revenue down by 6.6% a segment characterised by greater volatility and lower profitability in which the Group very selectively choosesits interventions and publishing efforts
• Third publisher revenue decreases as expected

Adj. EBITDA down year-on-year due to:

• lower revenue
• Higher operating costs (in particular logistics and transport costs) Despite unfavourable revenue and cost dynamics, the area confirmed profitability at the highest level in the sector

Business FY24 – Retail

Business FY24 – Media

Source: circulation in terms of value (newsstand + subs.) – Press-di (Dec. 2024), ADV: Nielsen (Dec. 2024); Unique Audience: comScore (Dec. 2024) ); Readers: Audipress II, 2024

Business FY24 – Media

• Digital: +22% thanks to increased advertising activities of MarTech, social media agencies and Webboh
• Print: -7.5% particularly due to the decline of add-on sales revenue:
  • Circulation: -7.7%, with a better performance of TV magazines (TV Sorrisi & Canzoni) at -5.8%
  • Add-on Sales: -26.3%, for reduced sales of Home Video and Music products
  • Adv: +11.0% thanks to the positive performance of the Interni event and the results of the new agency for TV Sorrisi & Canzoni, Chi e Focus

Adj.EBITDA up by 23%

REVENUE

Adj. EBITDA

• o Print, despite the reduced margin on add-on sales and lower contributions, thanks to continued measures to streamline activities and contain operating costs (including those for purchasing paper)
• o Digital, thanks to higher revenue and the contribution of new initiatives (including the brand Fatto in casa da Benedetta); profitability from 18% to 20%

FY24 Sustainability Statement

FY24 Headcount Evolution

4Q-FY24 Revenue and Adj. EBITDA by Business Area

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(Euro/millions)
	FY 2024	FY 2023	Chg. %	Q4 2024	Q4 2025	Chg. %
Trade Books	396.8	374.3	6.0 %	114.9	112 0	26 %
Education Books	233.3	237.5	(1.8)%	19.3	22.0	(12.0)%
Retail	215.5	199 5	8.0 %	71.7	66.1	8.5 %
Media	147.3	141.0	4.5 %	40.9	39.5	3.5 %
Corporate & Shared Services	46.0	43.0	7.0 %	12 3	11 4	7.8 %
Intercompany	(104.1)	(90.5)	15.0 %	(30.2)	(26.1)	15.6 %
Total Consolidated Revenues	934.7	904.7	3.3 %	228.9	224.8	1.8 %

Starting from 1 February 2024, the revenues deriving from Star Shop's distribution activities are included in the Trade Books area while the revenues from retail activities (direct and franchised stores) are accounted for in the Retail area.

(Euro/millions)
	FY 2024	FY 2025	Chg.	Q4 2024	Q4 2023	Chg.
Trade Books	62.0	59.2	28	19.8	18.2	15
Education Books	65.0	67.7	-2.6	(8.8)	(6.2)	(2.6)
Retail	16.7	14.0	2.7	7.3	5.7	1.6
Media	20.2	16.4	3.8	7.4	6.2	12
Corporate & Shared Services	(5.9)	(5.5)	-0.4	(1.5)	(2.0)	0.5
Intercompany	(0.4)	0 3	-0.7	0.1	0.8	(0.8)
Total Adj. EBITDA	157.6	1521	5.5	24.3	22.8	1.5

Highlights – 4Q24

FY24 P&L

(Euro/millions)	FY 2024		FY 2023		Chg. %
Revenue	934.7		904.7		3.3%
Industrial product cost	299.8	32.1%	2891	32.0%	3.7%
Variable product costs	110.3	11.8%	107 9	11.9%	2.2%
Other variable costs	157.5	16.9%	156.0	17.2%	1.0%
Structural costs	67.1	7.2%	62.4	દ વેર્જ	75%
Extended labour cost	149.3	16.0%	143 6	15.9%	4.0%
Other expense (income)	(6.9)	(0.7%)	(6.3)	(0.7%)	n.s.
	157.6	16.9%	:152.1	16.8%	3.6%
Adjusted EBITDA
Restructuring costs	24	0.3%	6.5	0.7%	n.s.
Extraordinary expense (income)	0.2	0.0%	(3.3)	(0.4%)	n.S.
EBITDA	155.0	16.6%	148.9	16.5%	4.1%
Amortization and depreciation	46.5	5.0%	424	4.7%	9.6%
Impairment & write-downs	0.5	0.1%	73	0.8%	(93.1%)
Amortization and depreciation IFRS 16	15.9	1.7%	15.0	1.7%	6.3%
EBIT	92.0	9.8%	84.2	9.3%	9.3%
Financial expense (income)	5.8	0.6%	5.7	0.6%	1.7%
Financial expense IFRS 16	2.5	0.3%	2.1	0.2%	19.1%
Associates (income)	(0.4)	0.0%	(4.2)	(0.5%)	n.s.
EBI	84.1	9.0%	80.5	8.9%	4.5%
Tax expense (income)	21.7	23%	17.9	20%	n.s.
Minorities	2.2	0.2%	0.2	0.0%	n.s.
Group net result	60.2	6.4 %	62.4	6.9 %	(3.5)%

4Q24 P&L

(Euro/millions)		Q4 2024		Q4 2023	Chg. %
Revenue	228.9		224.8		1.8 %
Industrial product cost	84.8	37.1 %	80.3	35.7 %	5.7 %
Variable product costs	279	12.2 %	28.8	12.8 %	(3.4)%
Other variable costs	36.0	15.7 %	39 3	17.5 %	(8.3) %
Structural costs	18 1	79%	18 5	8.2 %	(23)%
Extended labour cost	40.2	17.6 %	38.2	17.0 %	5.3 %
Other expense (income)	(2.4)	(1.1) %	(3.1)	(1.4)%	n.s.
Adjusted EBITDA	24.3	10.6 %	22.8	10.1 %	6.6 %
Restructuring costs	19	0.8 %	5.2	23 %	(64.2)%
Extraordinary expence (income)	1.6	0.7 %	0.2	01%	n.s.
EBITDA	20.8	9.1 %	17.4	7.7 %	19.4 %
Amortization and depreciation	12.4	5.4 %	12 5	5.6 %	(1.3) %
Impairment & write-downs	0.5	0.2 %	7.3	3.2 %	(93.1) %
Amortization and depreciation IFRS 16	4.2	1.8 %	3.8	1.7 %	8.2 %
EBIT	3.7	1.6 %	(6.3)	(2.8)%	(159.4)%
Financial expense (income)	1.6	0.7 %	1.1	0.5 %	53.1 %
Financial expense IFRS 16	0.5	0.2 %	0.6	0.3 %	(19.2) %
Associates	(0.1)	% -	(1.3)	(0.6)%	n.S.
EBT	1.7	0.7 %	(୧ ୧)	(2.9)%	n.s.
Tax expense (income)	0.1	ల్లిక -	(2.6)	(1.2)%	n.s.
Minorities	0.7	0.3 %	(0.1)	(0.1)%	n.S.
Group net result	0.9	0.4 %	(3.9)	(1.7)%	n.s.

FY24 Financial Statement

(Euro/millions)	December 31, 2024	December 31, 2023	Chg. %
Trade receivables	175.1	164 4	6.5 %
Inventory	156.6	149.9	45 %
Trade payables	273.1	257.1	6.3 %
Other assets (liabilities)	(46.2)	(43.7)	n.s.
Net working capital continuing operations	12.5	13.6	(8.0)%
Discontinued or discontinuing assets (liabilities)		1.7	n.s.
Net Working Capital	12.5	15.3	(18.2)%
Intangible assets	399.9	385.1	3.9 %
Property, plant and equipment	44.1	34.7	27.0 %
Investments	15.4	13 6	13.0 %
Net fixed assets with no rights of use IFRS 16	459.4	433.4	6.0 %
Assets from right of use IFRS 16	76.4	68.8	11.2 %
Net fixed assets with rights of use IFRS 16	535.9	502.2	6.7 %
Provisions for risks	29.0	40.8	(28.9)%
Post-employment benefits	293	292	0.3 %
Provisions	58.3	70.0	(16.7)%
Net invested capital	490.0	447.4	9.5 %
Share capital	68.0	68.0	- %
Reserves	1879	157 7	19 1 %
Profit (loss) for the period	60.2	62.4	n.S.
Group equity	316.1	288.1	9.7 %
Non-controlling interests' equity	1.0	0.8	34.4 %
Equity	317.1	288.8	9.8 %
Net financial position no IFRS 16	918	86.1	6.6 %
Net financial position IFRS 16	81.2	72.5	12.0 %
Net financial position	173.0	158.6	9.1 %
Sources	490.0	447.4	9.5 %

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Glossary

• EBITDA is equal to net results before interest. tax. depreciation and amortization.
• Adjusted EBITDA is EBITDA, as explained above, net of income and expenses of a non-ordinary nature such as

(i) income and expenses from restructuring, reorganization and business combinations;

• (ii) clearly identified income and expenses not directly related to the ordinary course of business;
  • (iii) as well as any income and expenses from nonrecurring events and transactions as set out in Consob communication DEM6064293 of 28/07/2006.
• EBIT net result for the period before income tax, and other income and expenses.
• Adjusted EBIT EBIT net of income and expenses of a non-ordinary nature, amortization derived from Purchase Price Allocation of the last 5 years and depreciation/impairment.
• EBT net result for the period before income tax.
• Adjusted Net Profit the net result before income and expenses of a non-ordinary nature, amortization derived from Purchase Price Allocation of the last 5 years and depreciation/impairment, net of related fiscal effects and gross of non-recurring fiscal income and expenses.
• Net Invested Capital is equal to the algebraic sum of Fixed Capital, which includes non-current assets and non-current liabilities (net of non-current financial liabilities included in the Net Financial Position) and Net Working Capital, which includes current assets (net of cash and cash equivalents and current financial assets included in the Net Financial Position), and current liabilities (net of current financial liabilities included in the Net Financial Position).
• Ordinary Cash Flow is cash flow from operations as explained above, net of financial expenses, taxes paid in the period. and income/expenses from investments in associates.
• Non ord. Cash Flow cash flow generated/used in transactions that are not considered ordinary, such as company restructuring and reorganization, share capital transactions and acquisitions/disposals
• Free Cash Flow the sum of Cash Flow from ordinary and non-ordinary operations in the reporting period (excluding payment of dividends, if any).

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