PSO

• Three things to take away: excited for future due to mega trends and unique strengths; 2025 was good year of financial delivery and strategic progress; 2026 to have improved financial profile. • Mega trends of demographic shifts and AI drive strong secular demand for Pearson's offerings. • Pearson's unique characteristics and competitive strengths: over 80% profit from assessments and virtual schools with high operational complexity and quality requirements; 10% from digital courseware with high switching costs. • 2025 priorities delivered: financial performance in line with expectations; embedded AI-based innovation; made progress on enterprise with growing revenue backlog. • Progress in 2025: driving performance in core businesses, including assessment and qualification growth, English Language Learning execution, higher education progress, enterprise learning and skills foundation laying, virtual learning standout year; driving synergies across business units; working on brand unification and modern software development approach.

• Medium term: mid-single-digit CAGR underlying sales growth, sustained margin improvement (40 basis points per annum on average), strong free cash conversion (90% - 100% on average). • 2026 specific guidance: group mid-single-digit sales growth, adjusted operating profit range GBP 640 million - GBP 685 million at FX rates as at end of 2025, free cash conversion 90% - 100%, effective tax rate circa 25%, interest circa GBP 80 million. Business unit specific: A&Q low to mid-single digit growth; Virtual Learning stronger growth than 2025; Higher Education more than 2025 growth; English growth higher than 2025; Enterprise Learning and Skills growth driven by BQ and strategic account growth.

Assessments and Qualifications: Growth increased in 2025, with Clinical Assessment and Qualifications business performing strongly, benefiting from digital growth and international expansion; Pearson Professional Assessments secured scope extensions and new awards; U.S. Student Assessment made progress. English Language Learning: Sharon and team executed strongly with customer wins in key institutional markets, maintained revenue level in PTE despite global market volume decline. Higher Education: Delivered faster growth in 2025 despite K-12 transition and international trading conditions, progressed early career strategy. Enterprise Learning and skills: Vishaal and team laid foundations for growth, built global enterprise sales team, secured long-term strategic relationships. Virtual Learning: Had standout year, saw benefits of execution improvements, enhanced early careers offering. Revenue contributions: Over 80% of profit from assessments and virtual schools; ~90% from operationally complex hybrid physical and digital services alongside print; ~10% from primarily digital courseware.

• Concerns about AI impact on employment and potential effect on demand for Pearson's products, but Pearson believes demand for trusted authoritative sources, verified identities, and validated skills is a tailwind. • Potential impact of economic downturns or changes in student learning behaviors, but Pearson's unique position and operational excellence are seen as mitigating factors.

Q: Provide more detail on A&Q growth in 2026, guidance for EOS, and risks from generative AI.

A: On A&Q, impact of New Jersey and PDRI, new contracts and products driving growth; on EOS, ELS is small now but Vishaal's team is driving growth; on AI risks, Pearson's business is a tailwind as demand for trusted skills validation exists.

Q: On virtual learning margin, pricing, and Higher Ed vs McGraw Hill.

A: Virtual learning margin from operating leverage, pricing not needing to pass on savings as Pearson has unique operational excellence, Pearson can catch up in Higher Ed with product and sales improvements.

Q: On enterprise backlog, pricing framework, and medium-term margin improvement.

A: Enterprise backlog has grown with new partnerships, pricing on hard commits, medium-term margin improvement from operating leverage, cost savings, and investment.

Q: On A&Q Q1, Higher Ed catch-up, and enrollment growth.

A: A&Q Q1 affected by New Jersey and PDRI, Higher Ed to improve with product and sales efforts, enrollment growth expected with product and strategy improvements.

Q: On A&Q client pause, Enterprise Learning size, and product impairment.

A: A&Q client pause in first half, Enterprise Learning is small within ELS, product impairment in Higher Ed due to converging 4 courseware platforms to 1