Sanoma Oyj - Inside information

Sanoma’s New Dividend Policy and Renewed Long-term Financial Targets

Sanoma Corporation, Stock Exchange Release, 7 February 2017 at 08:31 CET+1

Sanoma Board of Directors has decided on a new dividend policy and adjusted the
long-term financial targets. The new dividend policy reflects Sanoma’s aim to
be a solid dividend paying company while further deleveraging its balance
sheet. 

According to the new Dividend Policy, Sanoma aims, from 2017 onwards, to pay an
increasing dividend, equal to 40–60% of annual cash flow from operations less
capital expenditure. For 2016, the Board proposes a dividend of EUR 0.20 per
share, double from EUR 0.10 per share in 2015. 

When proposing a dividend to the AGM, the Board of Directors will look at the
general macro-economic environment, Sanoma’s current and target capital
structure, Sanoma’s future business plans and investment needs as well as both
previous year’s cash flows and expected future cash flows affecting capital
structure. 

Since 2013, the dividend policy has been: Sanoma conducts an active dividend
policy and primarily pays out over half of Group’ result excl. items affecting
comparability for the period in dividends. One-time investments and costs
associated with the transformation of its business require Sanoma to pursue a
prudent dividend policy in the near-term implying lower than historical
dividend pay-out. 

Deleveraging continues

Sanoma Board of Directors also renewed Group’s long-term financial targets.
Sanoma continues to deleverage its balance sheet. Sanoma targets for net
debt/adj. EBITDA* ratio to be less than 2.5 times (previously 3.5 times) and
the equity ratio is targeted between 35% and 45% (unchanged). The previous
gearing limit of less than 100% is concluded to be redundant and thus been
discontinued. 

                   New target  Old target  Actual 2016  Actual 2015  Actual 2014
Net debt/ adj EBITDA*    <2.5        <3.5          3.2          5.1          4.8
Equity ratio           35–45%      35–45%        41.0%        39.5%        42.2%
Gearing                   N/A      < 100%        78.4%        77.8%        66.7%
                                                                                

* EBITDA adjusted: 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 cash-flow
basis. 



Additional information
Sanoma's Investor Relations, Anna Tuominen, tel. +358 40 584 6944

Sanoma.com

Sanoma

Sanoma is a front running media and learning company impacting the lives of
millions every day. We provide consumers with engaging content, offer unique
marketing solutions to business partners and enable teachers to excel at
developing the talents of every child. 

With companies operating in Finland, the Netherlands, Belgium, Poland and
Sweden, our net sales totalled EUR 1.6 billion and we employed more than 5,000
professionals in 2016. The Sanoma shares are listed on Nasdaq Helsinki.