2011 results presentation slides

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2011 results presentation

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Fo r w ar d - l oo k i n g st a t e m en t s

Except for the historical information contained herein, the matters discussed in thispresentation include forward-looking statements. In particular, all statements that expressforecasts, expectations and projections with respect to future matters, including trends inresults of operations, margins, growth rates, overall market trends, the impact of interest

or exchange rates, the availability of financing, anticipated costs savings and synergies andthe execution of Pearson's strategy, are forward looking statements. By their nature,forward-looking statements involve risks and uncertainties because they relate to eventsand depend on circumstances that will occur in future.

There are a number of factors which could cause actual results and developments to differmaterially from those expressed or implied by these forward-looking statements, includinga number of factors outside Pearson's control. These include international, national andlocal conditions, as well as competition. They also include other risks detailed from time totime in the company's publicly-filed documents.

Any forward-looking statements speak only as of the date they are made, and Pearsongives no undertaking to update forward-looking statements to reflect any changes in itsexpectations with regard thereto or any changes to events, conditions or circumstances onwhich any such statement is based.

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2011 results presentation

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Financ ial h igh l i gh t s

m 2 0 1 1 2010 Headlinegrowth

CERgrowth

Sales 5 ,8 6 2 5,663 4% 6%

Op er at in g p r o f i t 9 4 2 857 10% 12%

Ad j u st ed EPS 8 6 .5 p 77.5p 12%

Op er at in g cash f low 9 8 3 1,057 (7)%

Net d eb t ( 4 9 9 ) (430) (16)%

Div id en d 4 2 .0 p 38.7p 9%

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Sa les g r ow t h

m

5 ,663

2 6 2

FX

5 ,862

Acquisitions

5 9

Underlying

growth( 1 2 2 )

20112010

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Op er a t i n g p r o f i t g r o w t h

m 2 0 1 1 2010CER

growthUnderlying

growth

North American Education 4 9 3 469 9% 8%

International Education 1 9 6 171 13% 2%

Professional 6 6 51 31% 10%

Educat ion

FT Gr ou p

7 5 5

7 6

691

60

12%

22%

6%

17%

Pengu in 1 1 1 106 8% 8%

Tota l 9 4 2 857 12% 7%

Continuing operations (excludes Interactive Data in 2010)

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Oper a t ing cash f low

2010 includes Interactive Data

m 2 0 1 1 2010 var

Operating profit 9 4 2 938 4

Working capital 3 9 149 (110)

Net capital expenditure ( 1 4 0 ) (135) (5)

Depreciation 1 1 8 133 (15)

Dividends from associates and JVs 3 0 23 7

Exchange and other movements ( 6 ) (51) 45

Op er at in g cash f low 9 8 3 1,057 (74)

Cash conv ers ion % 1 0 4 % 113%

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2006 2007 2008 2009 2010 2011

W o r k i n g cap i t a l / sa l es *

16 .9%

26 .3% 25 .6% 26 .1% 25 .1%

20 .1%

*Education and Penguin only

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Def e r r ed r evenu e

($m)

Continuing operations

% of Sales

2006 2007 2008 2009 2010 2011

4 7 0

5 4 56 0 4

7 5 2

8 7 57.0 7.1

7.4

9.310.0

1 ,054

11.2

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Nor t h Am er i ca : d ig i t a l l ea rn ing se rv i ces

MyLabs

SuccessNet

PowerSchool

2 0 0 9 2 0 1 0 CAGR

3.6M

3.7M

6.1M

2 0 0 8

4.8M

4.4M

8.5M

LearningStudio

PearsonAccess

1.1M

1.0M

1.4M

1.7M

AIMSWeb

SuccessMaker

2.2M

2.2M

3.1M

2.5M

To t a l 1 9 .9 M 2 6 .4 M

6.3M

6.1M

9.4M

2.6M

3.7M

3.9M

2.8M

34 .9M

29%

19%

18%

37%

79%

23%

12%

2 9 %

St u d en t s ser v ed 2 0 1 1

7.8M

6.2M

10.0M

2.8M

5.7M

4.1M

3.1M

42 .9M

Schoolnet N/A N/A N/A -3.2M

Connections N/A N/A N/A -33,200

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Pearson i n deve lop ing m ark e t s

Lat in Am er i caPeople: 1,800Sales: $300m

Af r i caPeople: 1,600Sales: $250m

I n d i aPeople: 2,000

Sales: $100m

ChinaPeople: 3,800

Sales: $300m

Midd le EastPeople: 150

Sales: $100m

Employee numbers: 2011 average, full-time equivalents

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Customised content based on reader profilePersonalised email alerts

Increasing click through rates to FT.com

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Eff icacy

EnVision Math

MyLabs

Third way partnerships

Pearson sistemas

Pearson in Practice

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Sus t a ined o r gan ic inv est m en t


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Sus t a ined o r gan ic i nv est m en tPre-publication expenditure & authors advances $m

2006 2007 2008 2009 2010 2011

6 5 77 4 1

7 7 5 7 9 4 8 1 6 7 9 4

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Learn more atwww.pearson.com

2011 results presentation slides

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