Thanks, Andy, and welcome to the Q&A part of the presentation. As a quick reminder, if you have a question, please use the chat function on the platform. With that, let's kick off with the first question, comes from Thomas Singlehurst from Citigroup. Andy, there's two for you, and then I'll come back and one for Andy and one for Sally. First question. In the past, you have highlighted issues with an all-you-can-eat approach with respect to safeguarding authors' interest. Can you outline how your model resolves these issues? Secondly, can you give some additional color on premium functionality in the Pearson+ app? What study tools work with the app from the get-go, and what pricing premium are you charging for these? Should we think about Pearson+ being a more direct competitor to Chegg over time? Hi, Tom. Thanks for your questions. I'm not familiar with myself highlighting any issues with an all-you-can-eat approach. I think what's happened in the pandemic has accelerated a shift in consumer behavior from an ownership model to an access model. Very much with Pearson+, it's that ability to provide access at a very affordable price, which is really driving our strategy forward. You saw in the video, the involvement of the students. By the way, we didn't script them. We sort of showed it to them and then recorded what they said. What you saw is kind of their reactions to seeing the app for the first time, and it was interesting to hear them talk about some of the things, the functionality they'd like to see introduced in the future, and we are listening. The other cohort that we've been very engaged with is actually the author community. We didn't have time to show some interviews we've had. They'll be posted on the website with authors. We've involved them in the creation of this app, very involved in them and believe this is very beneficial to that community as well. As for your second question, you saw some of the functionality just outlined there by Mike. All of that is included in the very simple pricing tiers. One textbook, $9.99 a month. Minimum commitment is only four months. If you want the entire library, it's $14.99 a month. Minimum commitment is just $14.99 for a four-month commitment. You can hopefully maybe get a sense as we engage closely with the student population, we start to understand what they're studying, what tools and functionality they want to introduce. As Mike referenced, we actually have a three-year roadmap laid out in terms of how this app works, not only within the Higher Education business, but then can extend into workforce. We can bring in our English Language Learning businesses. There's a very interesting synergy with our Assessments and Qualifications business, where you could imagine you could read a text and then take an assessment and achieve a qualification, all very seamlessly. There'll be potential to integrate Mastering, MyLab, Revel, other types of products. Already from the start, as Mike mentioned, if you are a subscriber, and there's some 8 million subscribers to those products in the U.S., your eText version of that subscription is already embedded into Pearson+. There's a lot of functionality from launch, but you can be assured that we'll be coming back to you and constantly updating the features and functionality within the app as we move forward in the coming months and years. Thanks, Andy. Just another couple of questions from Tom as well. Does an aggressive push into a subscription model accelerate the downward pressure on pricing and therefore revenues in U.S. Higher Education coursework in the short term? Sally, I think that's one for you, and then Andy, one for you. To what extent does the Pearson+ proposition kill Inclusive Access as a concept? I'll take the pricing one first. Obviously, we've done a huge amount of research, as we've looked to the pricing for this product. If you look at the two ways that a student can buy the product, this is something that we heard back from students was important for them, having the flexibility of either the $9.99 version for just one eText. Over the four months, that does equate to about the $40 that they would pay for an eText at the moment, but Pearson+ gives them more. The multi version, which is $14.99. We estimate that a student has about 1.3 books, so it gives us a sort of 70/30 split on that. This is all designed to maximize revenues for us over time and provide something that's really affordable for the student at the same time. To the second question, Pearson+ is a complementary to other distribution channels. What we're really looking at is at the supply side of the equation, in terms of, for the first time, allowing students to come directly to us at a very, as Sally was just saying, easy, accessible, and affordable price, and with an app that has an amazing amount of functionality, which will only increase over time. It is complementary to other offerings that are out there. Thank you both. Two questions from Adam Berlin from UBS. Sally, probably first one for you. Do you expect the new Pearson Courseware app to be incremental to revenues in the first 12 months or cannibalistic? Andy, how does the Pearson+ app integrate with Mastering and MyLab separate subscriptions? On the revenue side, as I said, in this year, we expect it to be relatively neutral as we get access to those consumers. Going forward, this is going to help us to accelerate recapture of the secondary market. Over time, we also think it's going to increase market share, not just because of the pricing that we've just talked about, but also because the functionality that it brings to students as well. I think we also need to remember, this isn't just about U.S. Higher Education. That's where we're starting, but we will also be looking to move this internationally, and then it will become a customer acquisition tool for us for things like English and Workforce as well. Andy, second question for you. Yes. As I mentioned, from the get-go, the eText part of that is included within Pearson+, and I think you can get a sense of how down the road it will be possible to integrate our other learning solutions into Pearson+. Also move beyond higher education and look as a bridge into the career, and really start to create a digital ecosystem, a digital learning ecosystem that involves the other areas of the company, so that I want Pearson to become the trusted home for digital learning solutions at key moments in a individual's life. We really start to lean into this notion of a lifetime of learning, and that becomes, I think, a very powerful concept, particularly when we start to expand Pearson+ internationally and start to think about the different products and services that we can offer within that lifetime of learning journey. Thanks, both. Next few questions, Nick Dempsey from Barclays. He's got quite a few, so I think we'll take them in stages. First question, Andy, is the Pearson+ app will not be on the Apple App Store or Google Play Store. How will students access it? Will they download it from your website, will faculty members be incentivized to direct students to this, or will you need a major marketing campaign? Second question, can you give us any indications for your plan to generate new revenue in Workforce Skills and English Language Learning? Okay. We'll pause there. Thanks very much for your question, Nick. You will be able to download the Pearson+ app from the Apple and the Google Store. Both of them approved the app earlier this week. You will register for the app just as you do for Spotify, for example, via the website. You will access the app through either the Apple App Store or the Google Play Store. That will be available when the product comes to market. You will have the functionality of being able to seamlessly go from laptop to tablet to phone, and the app syncs up. You can go from a large screen experience to something in the palm of your hand seamlessly, because everything is synced up into the cloud. Your question around faculty members being incentivized to direct students to this, we're not directly incentivizing faculty members, although there is a large incentive educational plan underway with faculty, so they understand the benefits to a student. We believe faculty will see this as a very positive sign, particularly around the area of accessibility and affordability. We do have the option to introduce promotions into the app, and that's something that we're able to test very rapidly for the first time. We can test concepts, test pricing concepts, A/B test a lot of things. We're very confident that faculty, as I said, along with authors, will find this as a really interesting tool. As we develop the tool and develop the app, there will be opportunities for faculty to actually be involved within the app itself, that I think opens up a whole host of new ways of teaching and new ways of delivering content beyond just the eText, that's something for a little further down the road. Finally, yes, there will be a major marketing campaign. At first, what we have to do is really increase awareness for Pearson+ amongst the student population. As students go back to college, there is a full funnel marketing campaign that is going to break out. The creative we were reviewing yesterday is really beautiful, really engaging. If you are in the target demographic, if you are in the U.S., you will be made aware of the availability of Pearson+. Thanks, Andy. Question about Workforce and English there, Andy, as well. Oh, yes. I don't want to get into too much details above and beyond what I mentioned in my remarks. I'm really enthused about the progress we've been making in both areas. Within English Language Learning, my thinking back in March was really to create a dedicated team to really focus on the opportunities that we have and bring together the existing assets, the Global Scale of English, obviously Pearson Test of English and other English language learning products that we already had within the company, bring them together and start to build. The team have done an enormous amount of work over the last few weeks in terms of coalescing that and looking at a number of very compelling strategies. We're really going to be focused on the committed English language learner. We have some very interesting plans. You're going to have to stay tuned perhaps for the next quarterly update when we may give you some more information in that regard. As I said, with Workforce Skills, we've assembled over 100 employees from across the company, and they've created a series of very groundbreaking, innovative products. We've been spending a lot of time talking to some very large and significant corporations about their needs and the ability for Pearson to apply what it has done so successfully in the educational space, in the institutional space. To apply some of those same principles into the corporate world and everything from our Assessments and Qualifications businesses, through to the ability to create courseware and provide learning platforms. Very encouraged by the progress they're making. Again, I expect you should have more news on that as we get into the latter part of this year. Thanks, Andy. Just staying with Nick, another quick one for you. Would it make sense to bundle MyLab with Pearson+ sometime in the future? Secondly, Sally, one for you, changing gears to, with our Professional Certification declining in H2 2021 versus a tough comp, could that flow into H1 2022 or should you be back to growth by then? Well, as I indicated, Pearson+ opens a world of possibilities for us. Whether that is bundling a MyLab Mastering Revel products within it, creating new products, creating new content that sits alongside the eText is something that we're very much focused on. You should think of Pearson+ as a digital learning ecosystem, as a digital learning platform that is going to transform the way that we deliver and interact with initially U.S. higher education students, but potentially a much bigger and broader audience. On Professional Certification, as you said, H2 this year has got that tough comp because we had pent-up demand that we delivered in the back part of last year. I'll tell you more about 2022 when we get nearer the time, but broadly speaking, across next year, we'll see Professional Certification, VUE return to the growth that we expect of what is a great business. Thanks, Sally. Final two questions from Nick. Andy, one for you. Is the slower opening up in international making it difficult to find potential buyers for your school courseware businesses? Sally, it has always been difficult to raise awareness of new products in Higher Education and get faculty interested in these. Can you give an idea how you expect this to ramp as a percentage of your U.S. Higher Education revenues over the next few years? Wow, Nick's getting his money's worth this morning. The international courseware businesses are really attractive businesses in it themselves. As the team have been working on the perimeter and other aspects of that business, we've been very encouraged by the number of unsolicited inbound inquiries. As we continue to conclude that process, we're very optimistic that given the assets themselves that there would be a great deal of interest if we decide to go down that route. Then in terms of Higher Education, and Pearson+ from a product point of view. I think that this isn't a new product in the way introduction of, I know MyLab might have been back in the day. This is extra functionality for the consumer for an eText product. I don't think it's that we've got to then go in and adopt this with professors for the first time. I don't think you see the same dynamics as for new products in the past. I think you'll see that consumers will see the extra functionality, will download Pearson+ and will enjoy it, and that will help drive market share over time because that will then lead professors to being more interested in the product and adopting our product over time as well. Thanks, both. Moving to Sami Kassab, Exane. Sami, you've got three questions. Firstly, can you please comment on retention trends of the COVID cohort in Virtual Schools? Secondly, other OPM vendors have and continue to report stronger revenue growth rates. Why is Pearson underperforming? I'll come back to the third. Okay. Thank you. Virtual Schools, as I said, enrollments for the 2021, 2022 school year, we're expecting to be flat, as I said earlier in the year. Obviously, we've got more data at this point in the year, and what we had expected is what is coming through. Application rates are down. We expected that because of the huge surge we had in applications last year, given COVID. Retention rates are up, those retention rates are on a much bigger base, obviously, than we had last year as well. Those two things cancel each other out. As we look to the future for Virtual Schools, we'll see that return to that great growth rate that we were used to in the past as well. The second question was on OPM, wasn't it, Jo? Yes, that's right. OPM underlying growth rate of 11% is good. Obviously, we have these discontinued programs. That drag finishes this year. We're really focused in OPM on operational performance and in driving profitability, and that's what we'll see going forward in OPM. Good high single digits growth rate and improving profitability. Brilliant. Thanks, Sally. The third question from Sami is: how many Pearson eTexts are students required to procure each semester? Will Pearson+ result in deflation? From a Pearson eText perspective, they're required to get the product if their professor adopts the product. I think I said earlier that we estimate about 1.3 of those. That equates to about 70/30. 70% of people are looking for one eText, 30% of people looking for more. For the 70%, that equates to about the $40 they'd be paying for an eText at the moment. If you average that out for the multi-subscription, that means that that very slightly lower than that $40. What we've done in terms of this pricing is to look at how we recapture the secondary market and balancing volume and price to make sure that we maximize the revenues that we gain from this fantastic new product. Thanks, Sally. It may be worth, Jo, it may be worth reminding, in a given year, we reach about 50% of the U.S. higher college student cohort, around 10 million individuals. Each year there's about 2 million new individuals come in. Over the course of a four-year U.S. college period, a student is likely to interact with a Pearson textbook. Over 90% of students are likely to use a Pearson textbook over that time, to give you a sense of the size and scale of that opportunity, both on an annual basis and then over a longer period of time. Thanks, Andy. Moving to Matthew Walker from Credit Suisse. Four questions, let's take them in twos. Sally, one for you. As well as recapturing from the secondary market, will Pearson+ cannibalize any of the other Higher Education revenue stream? Can you explain the thinking behind the economics? Andy, for acquisitions, which of the business lines are you looking at, and why did you not consider buying Stride? In terms of recapture of the secondary market with Pearson+, it absolutely will. There will be people who move from some of our products into this, particularly print, but we'd already anticipated that pricing mix impact in the past. Of course, we want people to move to our digital products because that's all part of recapturing the secondary market. If people choose to go to Pearson+ rather than IA, that doesn't really have a price differential for eText. People won't move from our platform products to eText because they are a completely different product. Obviously, the platform product has the homework quizzes and that sort of thing in it, but they will also have access to Pearson+ as well, so that we can build that direct relationship with them. Andy, acquisitions. Yes. On our acquisitions, as you know, we have a healthy balance sheet. If we feel the need to find and the right opportunity comes along, we have the capability to acquire. I'm only interested in acquiring entities that will accelerate our growth and fit into the strategy that we've laid out. Above and beyond that, I'm not gonna get into any more details or comment about any form of potential targets that are out there. Both. Two more questions from Matt. Sally, are you being too conservative with your flat VUE assumption in H2? Secondly, in a four-month subscription, just for the first time then after, can a student just subscribe for one month? No, given that pent-up demand from last year, I think the flat VUE in the second half of the year is sensible. As for clinical, as I said, and then school assessment, there is a phasing difference. In terms of the four months, after you subscribe for four months, can you then subscribe for one month in Pearson+? Absolutely. Yes. Yeah. What we're seeing, by the way, which is interesting, we're seeing this, is students are being flexible in terms of how they are learning. I was talking to a group of students who have decided they want to continue studying during this summer recess, because a couple of them said, I want to try and finish my degree by December. You're seeing somewhat of a disruption to the traditional pattern. Pearson+ and the pricing of that also plays into those students who want to continue to have access to books outside of the course semester. Yes, after your minimum commitment, it's on a month-by-month basis. Thanks, both. Next two questions come from Sarah Simon from Berenberg. Andy, I think both are you. Is the recent news about crackdown on education in China likely to have any impact on your business? Secondly, colleges typically share in the revenues of a college bookstore. By going direct to students like this, do you end up alienating the colleges, or will you be paying a share to the colleges' bookstores? On the China question, Sarah, you'll be aware that That legislation is focused primarily on K through 12 and around tutoring. We're not significantly have a significant presence in K through 12. We disposed of those assets in the past. We see very minimal impact on those reported changes within China. On the bookstore side, our intention is not to alienate colleges. In fact, we believe that Pearson+ is a great tool for colleges and the faculty themselves, as I mentioned before. We're providing an alternative distribution channel for access from students through Pearson+. Yeah, we have no plans to be paying a share to either the colleges or to bookstores. Thanks, Andy. We've got time for one more question. The last two questions come from Patrick Wellington at Morgan Stanley. Sally, U.S. higher education coursework declined by 10%-12% in the last two years. How much better than that is the 2021 performance likely to be? Andy, why is Pearson+ an innovative method of selling content when Cengage has been doing something similar for two to three years? Shall I take the Higher Education question, Andy? I can be quite quick. As I said, we expect U.S. Higher Education to be down, but by less than we've seen in previous years, which was -1 2%. I'm not gonna be drawn on the specifics. I'll share more on that in Q3. As we mentioned in the video, Patrick, both from the pricing itself and the pay-as-you-go model, they are very distinct as to other offerings in the market. I think you've maybe got a sense of the user experience and feature set, and the opportunity for us to develop and enhance this product going forward, and really utilize the breadth and strength of Pearson as a whole. When we start to bring all of that, and we are uniquely the only company that can do that and do that at scale, and start to roll this product out globally, I think you'll see that it's a very distinct differentiator and a very innovative and very unique product in the market. What you're seeing today with Pearson+ is very much the start of a well-thought-out journey. The product that you will be seeing in the coming months and years will be very different from the one that you see today, and that will be unique within the world of learning. Thanks, Andy. That's all the time for questions. With that, I will hand back over to you. Well, thank you all very much for your interest this morning. I know Sally, Jo, and myself will be speaking to many of you in the coming days. If you have any specific questions, please reach out to Jo and the team. Thanks for your interest, as always, in Pearson. I wish you a happy Friday and a great weekend.