Promotora de Informaciones S.A.

Investor Presentation • Oct 19, 2020

A los efectos de lo previsto en el artículo 17 del Reglamento (UE) nº 596/2014 sobre abuso de mercado y en el artículo 226 del texto refundido de la Ley del Mercado de Valores aprobado por el Real Decreto Legislativo 4/2015, de 23 de octubre, Promotora de Informaciones, S.A. (la "Sociedad" o "Prisa") comunica la siguiente

INFORMACIÓN PRIVILEGIADA

Prisa, a través de su filial Grupo Santillana Educación Global, S.L.U. ("Santillana"), ha formalizado en el día de hoy un acuerdo con Sanoma Corporation, compañía finlandesa de medios con presencia en Europa en el sector de educación, para la venta del negocio de pre K-12 y K-12 de Santillana en España (la "Operación").

Queda excluida de la Operación la actividad privada y pública de Santillana en Latinoamérica, que se seguirá desarrollando por Prisa, indirectamente, a través de Santillana. Asimismo, Santillana mantendrá la propiedad de todas sus marcas, suscribiendóse, en la fecha de cierre de la Operación, un acuerdo de licencia exclusiva a favor de Sanoma para la utilización, entre otros derechos, de las marcas "Santillana" y "Loqueleo" en la Unión Europea, excluyendo Portugal, y de la marca "Richmond" en España.

La Operación ha sido aprobada por unanimidad en el Consejo de Administración de la Sociedad celebrado en el día de ayer, 18 de octubre de 2020.

El precio de la Operación ha quedado establecido en un importe de 465 millones de euros y será satisfecho íntegramente en efectivo en la fecha en que se cierre la Operación, una vez descontada la deuda neta del negocio objeto de la Operación a 30 de junio de 2020, estimada en 53 millones de euros. Dicho cierre está condicionado a la (i) obtención de la preceptiva autorización de las autoridades de competencia españolas (o a la confirmación de que tal autorización no es necesaria);(ii) la obtención de los consentimientos precisos por parte de las entidades acreedoras de la Sociedad con la mayoría de las cuales (que representan un 79,7%) se ha alcanzado un acuerdo de principios (Term Sheet) en esta misma fecha y que ha sido objeto de la Información Priviliegiada publicada en el día de hoy; y (iii) la preceptiva aprobación por la Junta General de Accionistas de Prisa de conformidad con el art. 160.(f) de la Ley de Sociedades de Capital.

Se adjunta una presentación sobre la lógica estratégica y financiera de la Operación.

En Madrid, a 19 de octubre de 2020

D. Xavier Pujol Tobeña Secretario General y del Consejo de Administración

Debt Refinancing Agreement & Disposal of Santillana Spain

October 2020

Disclaimer

This document regarding Promotora de Informaciones, S.A. ("Prisa") has been prepared for information purposes only and it is not regulated information or information that has been subject to prior registration or control by the Spanish Securities Market Commission. "Presentation" means this document, its contents or any part of it, as well as any oral presentation, any question or answer session and any written or oral material discussed or distributed during meetings carried out in connection with this document.

This Presentation may not be reproduced in any form, used or further distributed to any other person or published, in whole or in part, for any purpose without the express and prior consent of Prisa. Failure to comply with this obligation may constitute a violation of applicable securities laws and/or may result in civil, administrative or criminal penalties. This Presentation is not for publication, release, disclosure or distribution, directly or indirectly, in any jurisdiction where to do so would be unlawful.

This Presentation may include forward-looking statements about Prisa´s industry, business strategy, goals and expectations concerning its market position, future operations, margins, profitability, capital expenditures, capital resources and other financial and operating information. The words "believe", "expect", "anticipate", "intends", "estimate", "forecast", "project", "will", "may", "should" and similar expressions may identify forward-looking statements. Other forward looking statements can be identified from the context in which they are made. These forward-looking statements are based on numerous assumptions regarding the present and future business strategies of Prisa and the environment in which Prisa expects to operate in the future. These forwardlooking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of Prisa, or industry results, to be materially different from those expressed or implied by these forward-looking statements. Forward-looking statements should not be taken as forecasts or promises and they should not be taken as implying any indication, assurance or guarantee that the assumptions on which such forward-looking statements have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the Presentation. As a result, you should not place undue reliance on these forward-looking statements as a prediction of actual results or otherwise.

The information in this Presentation, which does not purport to be comprehensive, has not been independently verified, applies only as of the date of this Presentation and is not intended to give any assurances as to future results. Prisa expressly disclaims any obligation or undertaking to disseminate any updates or revisions to the information, including any financial data and any forwardlooking statements contained in this Presentation, and will not publicly release any revisions that may affect the information contained in this Presentation and that may result from any change in its expectations, or any change in events, conditions or circumstances on which these forward-looking statements are based or any change in whichever other events or circumstances arising on or after the date of this Presentation.

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IMPORTANT INFORMATION: This Presentation does not constitute or form part of, and should not be construed as, any offer to sell or issue or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities in any jurisdiction, particularly in the United States, Canada, Japan or Australia, nor shall it or any part of it nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision.

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Key highlights Building the pillars of Prisa's future

3 Future roadmap

• The combination of both transactions represents a significant step forward in the Company's strategic roadmap, allowing Management to fully focus on the execution of the Company's strategy:

  • Unlock value embedded in its Ed-tech business in LatAm, with particular focus on subscription model
  • Reinforce the digital offering and the subscription model of its Media business

• Based on an average EBITDA of €48.7m between 2017 and 2019

• Based on a locked-box mechanism as of June 2020

Maturity	Extension of debt maturity until March 2025
Syndicated Debt repayment	€400m prepayment of Syndicated Senior Debt primarily funded through proceeds from disposals of Santillana Spain and Media Capital
Financial covenant	Commitment to reduce net leverage below 4.25x in September 2023
Debt margin	Variable margin starting @ 5.5%. All-in average cost of c.7%
Additional liquidity	Incremental super senior basket capacity of c. €110m
Refinancing Lock-up Agreement already approved by 79.7% of lenders to be processed by means of a Scheme of process Arrangements, if not approved by unanimity, and expected to enter into force by H1 2021

Long term and sustainable capital structure

Over €275m¹ of consolidated cash balances / RCF lines for liquidity needs and the development of the company's roadmap

Enables to continue executing Prisa's Roadmap of differentiated businesses: Education and Media

✓

1. Based on an average EBITDA of €48.7m between 2017 and 2019

2. Based on a locked-box mechanism as of June 2020. Pre carve-out and transaction costs

Optimally positioned to start building on the future roadmap

1. Proforma for the sale of Santillana Spain. Excludes corporate and others

³ Santillana at a glance

Ed-Tech Pan-LatAm platform suited for growth and value creation

Sole Pan-LatAm Platform with presence throughout the large and growing LatAm (private K-12 market of 18 million students)

Scalable technological platform ready to benefit from the acceleration of digital transformation as a result of COVID-19

+1.7M students under subscription models with c.25% YoY growth

Leading positions in private and public markets across geographies

Unparalleled distribution network of c. 1,800 sales representatives with broad experience and specialization

• •Strong growth in private LatAm pushed by subscription models, maintaining a blended value proposition with greater relevance of digital components
  • Migration of students from didactic business to subscription models
  • Market share capture in key markets

•Maximisation of results in LatAm public markets, for Central Government programs, as well as State, Regional and Local Governments, preparing the path to changes toward a greater relevance of digitalization

% of Group Proforma1 Revenue LTM Q1'20

Best-in-class Pan-LatAm platform with a full focus on crystallizing value in growing education market segments

³ Santillana within the Private LatAm Market

Irreplicable position to accelerate subscription model transformation in a promising market

Santillana is the only player with a Pan-LatAm platform that is present in all LatAm countries and that is expanding the subscription model outside Brazil, benefiting from a larger and less penetrated addressable market

Source: Companies information

1. Number of didactic students for Q12020 as per Vasta IPO prospectus

^1. Figures as of June 2020

^2. Subscription model students are exclusive students of one education provider. Didactic students can be supplied by the different education providers with different degrees of penetration from one book to the complete curriculum

Clear strategy towards growth and value creation

Undisputable leadership across countries with room to 1 further capture market share					Leading the transition into profitable subscription model 2 with a proven track-record of growth
		Addressable Market1 (m students)	Santillana1 2 (m students)	Market Share (%)	of Students in the Subscription Model Evolution 45.6% # Students (k) CAGR 40,2% 35,0%
Brazil (~8.0m Students)	Didactic	~3.3m	~1.3m	22% 2	32,3% 11' - Q1 20': 60% 30,4% 26,7% 1.716 1.434 16,0% 1.234 4,5%
	Subscription	~4.7m	~0.6m	3 13%	964 n.a. 1.126 835 1.007 628 872 436 687
Mexico (~3.2m Students)	Didactic	~2.7m	~0.7m	15% 1	577 419 123 56 271 590 43 427 362 258 277 209 165 80 56
	Subscription	~0.5m	~0.2m	1 49%	2011 2012 2013 2014 2015 2016 2018 2019 Q1 2020 # Total LatAm Students 2011 2012 2013 2014 2015 2016 2018 2019 2020 # Rest of LatAm Students (k)
Colombia (~1.8m Students)	Didactic	~1.2m	~0.8m	1 37%	# Brazil Students (k) % Subscription Share in Private Business Revenue
	Subscription	~0.6m	~0.5m	80% 1	Subscription model ensures attractive economics
Peru (~1.1m Students)	Didactic	~1.0m	~0.6m	33% 1
	Subscription	~0.1m	~0.1m	60% 1	Increased Average ARPU Elimination of double Higher Profitability per Student use/no use practices (c. 30% EBITDA margin) (Higher vs. didactic)
Rest of LatAm (~3.9m Students)	Didactic	~3.2m	~1.9m	1 34%
	Subscription	~0.7m	~0.4m	57% 1	High Visibility of Higher Contact and
Total (~18.0 m Students)	Didactic	~11.4m	~5.3m	1 30%	Earnings: Knowledge of Fully Invested Digital long term contracts Final Client Platform of 3-4 years with schools (>90% renewal rate)
	Subscription	~6.6m	~1.7m	1 24%

Clear proposition to accelerate our growth and leadership in Private LatAm with a full focus on the attractive and profitable subscription model

Source: Company information

1. Figures as of June 2020

2. Subscription model students are exclusive students of Santillana. Didactic students can be supplied by the different education providers with ddifferent degrees of penetration from one book to the complete curriculum

Key Takeaways

• ✓ Net debt to be reduced by over 30%
• ✓ Extension of maturities until 2025
• ✓ Sufficient liquidity for executing future roadmap
• ✓ Allows Santillana to fully focus in LatAm
• ✓ Enables achieving a more sustainable capital structure
• ✓ Attractive exit multiple at the right time for Prisa
• ✓ Differentiated management of the businesses
• ✓ Santillana: Unlock value embedded in LatAm Ed-tech, with particular focus on subscription model
• ✓ Media: Reinforcement of the digital offering and the subscription model

Building the pillars of Prisa's future

Appendix

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Founded in 1960, Santillana Spain is the largest provider of learning materials, primarily textbooks, for primary and secondary education in Spain (K-12)

• Strong position thanks to its content quality, its proactive approach with teachers and its digital capabilities
• Primarily focused on Standard Education (textbooks) and with an increasing presence in Languages and children's literature
• In 2019, a peak-year in the education cycle, Santillana Spain reported sales of €128m

Founded 130 years ago as an independent News Media Company. Sanoma is an innovative and agile learning and media company listed at Helsinki Nasdaq

• Sanoma Learning is a growing European education company with presence in 11 countries through a portfolio of modern, blended course materials in primary, secondary and vocational education (K-12)
• Sanoma Media Finland is the leading media company in Finland, reaching 97% of all Finns weekly through multiple media platforms

Subscription model product offering

Differentiated multi-model approach to address every customer 's need across geographies

Santillana has a complete portfolio of 10 brands in the subscription model ...

... enabling the company to adapt its strategy for client capture and development in each country and competitive environment

Fully digital blended offering to benefit from ..

... COVID-19 acceleration of technology adoption and penetration of technological platforms at schools

Extensive digital offering covering all segments and methodologies optimally positioned to benefit from the acceleration of the K-12 technology in LatAm

October 2020

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