Sustainability Report 2022

Through brands including Santillana, Compartir, UNOi, Moderna, Norma and Richmond Solution , the company creates and distributes educational content and services in Spanish, Portuguese and English, for all levels of education and for students aged 3 to 18. Learning material is adapted to comply with the regulations and education models of the 20 countries where the company operates (Portugal and 19 countries in Latin America). Since the end of 2020, Santillana has had no business operations in Spain, except for its corporate center, which coordinates and directs its strategy at a global level. In 2022, Santillana reported operating income of EUR 447 million euros and EBITDA of EUR 102 The private-school market accounted for 70% of Santillana’s business in 2022, with the public sector making up the remaining 30%. million. Brazil and Mexico accounted for 59.4% of operating income of this business unit in 2022. The business model is focused on the sale of educational content and services to the private and public education sectors. The private-school market accounted for 70% of Santillana’s business in 2022, with the public sector making up the remaining 30% Private market Santillana's value proposition for the private-sector market consists of delivering learning solutions through two business models: the so-called traditional didactic model and the subscriptionmodel . Santillana’s operating income By region or country 2022 Rest 40 . 6% Brazil and Mexico 59 .4% Total (in millions of euros) *EBITDA excluding severance payments. 359 447 +25 % 2022 2021 The so-called didactic model is the traditional business approach, based on the sale of textbooks . Generally, the clients are private schools, with the purchase decision made by the teachers and/or the school directors or owners. The buyers of the products are the students’ parents, and the end user is the student. In 2022, this model accounted for 26% of Santillana's business . However, the priority focus of this business unit is now the subscription model, based on learning systems that are delivered via the Santillana educational technology platform , which is scalable globally and which includes a comprehensive service aimed at schools, teachers and students, combining technology, training and student assessment. Under this business model, Santillana signs contracts with schools for a period of 3 or 4 years for the provision of the service through hybrid learning systems (online and offline). These systems offer complete and modular curricular solutions that flexibly adapt to the needs of the school (flexible systems and English-language systems) and solutions that go beyond the curricula to complete student learning paths (supplemental systems). Public market Meanwhile, Santillana's value proposition for the public-sector market focuses on the delivery of solutions that meet the criteria of public tenders regularly convened by governments across Latin America . All of this has made Santillana the world’s leading provider of educational content and services in Spanish and Portuguese. Total subscriptions to comprehensive, flexible and subject-based learning systems (millions) 2 .0 2 .6 +33 % 2022 2021 Students using Santillana content (in millions) 27 28 +5 % 2022 2021 Learning System users (millions) 2 .8 3 .7 +29 % 2022 2021 Number of schools 6,868 8,923 +30 % 2022 2021 PRISA Sustainability Report 2022 13 12 PRISA, the global gold standard for education and news