Pearson 2024 Q1 Trading Update (Unaudited) - Seite 2

• Expect growth momentum in the second half of 2024 with the growth of Higher Education and normalised comparators for the assessments businesses.
• In Assessment & Qualifications, we continue to expect low to mid-single digit sales growth for the year, with sales growth weighted to H2.
• In Virtual Schools, we continue to expect sales to decline at a similar rate to 2023, given the previously cited loss of a larger partner school for the 2024/25 academic year. As a reminder, there was a weighting of sales to Q1 from Q2 due to the timing of state funding. We expect to return to growth in 2025.
• In Higher Education, we remain confident we will return to growth in the second half and for the full year. We continue to expect H1 to mirror H2 2023 before the return to growth.
• In English Language Learning, we continue to expect high single digit sales growth with growth weighted to the second half given the outstanding performance in the first half of 2023.
• In Workforce Skills, we continue to expect to achieve high single digit sales growth.

Strong financial position

• Pearson’s financial position remains robust, with low leverage and strong liquidity.
• Moody’s improved its outlook for Pearson from Baa3 Stable to Baa3 Positive outlook.

Share buyback

• We completed the £300m share buyback programme that was initiated last year and have since commenced the previously announced £200m buyback extension with £88m purchased up to 24 April 2024.

Financial summary

	Underlying growth
Sales
Assessment & Qualifications	2%
Virtual Learning	(4)%
Higher Education	(4)%
English Language Learning	22%
Workforce Skills	9%
Strategic Review2	(100)%
Total	2%
Total, excluding OPM1 and Strategic Review2	3%

^{Throughout this announcement growth rates are stated on an underlying basis unless otherwise stated. Underlying growth rates exclude currency movements and portfolio changes.}