en-so-epp-14 Share in our success Worldwide Save For Shares 2014 Employee presentation

1 “We want everyone in Pearson to have a chance to own a part of their company” John Fallon, CEO

What is Worldwide Save For Shares? Worldwide Save For Shares is an easy and flexible way to save money from your pay where possible At the end of your savings period, if you choose to, you can: – use your savings to purchase Pearson shares at a 20% discount to the market price at the start of the Plan; or – have your savings returned to you If you purchase shares, you can either keep them or sell them immediately Worldwide Save For Shares is open to all Pearson employees All employees are eligible if they appear on the Pearson payroll on the closing date (22 April 2014) The monthly savings amount has now increased to GBP £500 per month for

Why do we offer Worldwide Save For Shares? Encourages share ownership Makes all employees feel a part of Pearson Rewards performance Attracts new people Retains employees 3

Three good reasons to join 4 It’s easy You can apply either online or using a paper application form and your contributions will be taken directly from your monthly pay (where possible), or you can save into a bank account you open personally. It’s flexible You can save a fixed amount from as little as GBP £5 per month to the new maximum limit of GBP £500 per month in your local currency for three or five years. If necessary, you can even take a break from saving for up to six months. It’s for everyone At the end of 2013 over 4,300 Pearson employees were participating in Worldwide Save For Shares.

A step by step guide 1. Decide how much you want to save and for how long You can save between GBP £5 and GBP £500 per month The tax information sheet for your country shows how much this is in your local currency You can save for three or five years When you’ve decided how much you want to save each month, and how long you want to save for, Pearson will agree the number of Pearson shares you can purchase at a 20% discount with your savings at the end of the Plan. The 20% discount price is set on 2 April This is the price you’ll pay if you decide to purchase Pearson shares with your savings at the end of the Plan. 5

A step by step guide 2. Apply online or by post Once you’ve received your account number from your Plan Champion, go to Follow the quick and easy ‘apply online’ instructions; or Print out the paper application form, complete this and return it directly to your Plan Champion in advance of the deadline Don’t worry if you don’t have an account number, you can still join by completing a paper application and returning it to your Plan Champion You can join any time between 6 April 2014 – 22 April It’s easy! 6

A step by step guide 3. After you’ve joined WWSFS Savings are made automatically from your monthly pay (where possible) In June your grant documentation will be sent to you confirming: – your savings amount – how long you are saving for; and – the maximum number of shares you are able to purchase at the end of the savings period Your savings will be taken from your pay (where possible) from July 2014 onwards and deposited into a local savings carrier or bank account You will receive a statement each year showing the value of your savings WWSFS is flexible – you can take up to a six month break from your monthly payments, either all in one go or spread out over the life of the Plan. Please note: your savings period will be extended for every month you take a break from contributing Don’t forget, you can withdraw your savings at any time. 7

A step by step guide 4. At the end of the savings period In three or five years’ time, when your chosen savings period ends, you have three choices: – take your savings back as cash – purchase Pearson shares at the 20% discount price and keep them – purchase Pearson shares at the 20% discount price and sell them If the market price of Pearson shares is lower than the 20% discount price, you can request to have your savings returned to you from your current savings arrangement as cash The 20% discount price is set at the start of your savings period, but you won’t be able to purchase your shares until the end of your Plan (leavers are dealt with separately by your Plan Champion). Watch the share price and decide what’s best for you. Remember: Share prices can go up as well as down. 8

What are the risks? Your savings are held in a local bank or savings account, which your Plan Champion can help you set up Changes in the currency exchange rate could mean you have more money in your local savings carrier or bank account than is required or not enough If you have not saved enough to be able to purchase all of your granted Pearson shares, you can make an additional payment into your WWSFS account, but only up to the amount needed to purchase your maximum entitlement. 9

Pearson share price The diagram below shows how the Pearson share price has performed over the last year 10

An example 11 Here’s how your savings could add up, and the choices that are open to you Please remember: share prices can go down as well as up, and past performance is not necessarily an indicator of future performance. Please note: the notional bonus is not included in the 2014 Plan.

What it means to be a Pearson shareholder If your Plan legally allows you to purchase and hold onto your shares, they will be stored electronically through an Overseas Sharestore account with Equiniti Limited As a shareholder you can: – receive dividends twice a year, as cash or shares – receive shareholder communications and the annual report – attend and vote at the Annual General Meeting (AGM) on issues affecting the Company – view your shares online 24/7 365 days a year by creating a portfolio on Equiniti’s web portal 12

Worldwide Save For Shares 2014 campaign For information on this year’s WWSFS Plan, look out for: Neo – we will be providing information about the Plan on Neo Poster – to remind you of key dates – inviting you to join the Plan Your account number provided by your Plan Champion. Key dates April – John Fallon will announce this year’s Plan and confirm 20% discount price 6 April – invitation period starts 22 April – invitation closing date. 13

Here you’ll find all of the information you need to know to apply for Worldwide Save For Shares Information on how the Plan works Plan booklets Note from John Fallon on share ownership Online enrollment and paper application form Savings and share calculators Previous years’ discounted prices Your local Plan Champion’s details …and a copy of this presentation. You can also follow us at or on Neo at 14

Where to go for help Don’t worry if you’ve got a query, your Plan Champion will always be on hand to help and is your first point of contact They will: – help you if you can’t access the website; – confirm your account number (if you lose your account number letter or if you don’t receive it for some reason) You can also questions to 15

Summary 1. It’s easy – you can apply either online or by using a paper application form and your savings will be taken directly from your monthly pay (where possible) 2. It’s flexible – you can save a fixed amount from as little as GBP £5 per month to GBP £500 per month in your local currency for three or five years. If necessary, you can even take a break from saving for up to six months 3. It’s open to all Pearson employees 4. Find out more information from - Your Plan Champion - Our website - Follow us on Neo at 5. You can apply between 6 April and 22 April

Q&As 17

Thank you! 18