Pearson Investor Presentation Deck

Focus on disciplined capital allocation Robust, efficient balance sheet Operating cash flow £388m 2021 +£13m £401m 2022 Cash conversion Liquidity 88% 2021: 101% How we deploy capital 2020 £1.4bn 2021: £1.6bn 2021 Organic investment Inorganic investment Dividends 2022 Net debt £557m 2021: £350m 3 year average Share repurchases Capital allocation decision factors Maintain a solid investment grade rating Invest in the business to drive growth Meet appropriate hurdle rates for investment opportunities Maintain progressive and sustainable dividend policy Apply above framework to all organic and inorganic investment decisions 17

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