Slides
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Interim report presentation July 2024 – June 2025 Marcus Strömberg, CEO Petter Sylvan, CFO Q4 August 29, 2025
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Change Through Education CEO introduction 2 • Net sales increased by 5.4 percent in the quarter, 5.6 percent organically including small bolt on acquisitions. • All segments developed in a positive way, both in the fourth quarter and over the full year. • Dedicated and creative efforts to strengthen our value proposition had a positive impact on the number of children at our units. • Examples from our Swedish preschools include swimming lessons, road safety lessons, reading and libraries – all with the aim to provide our children with important skills to grow as a person, to feel good, and to succeed at school. • All-in-all, the number of children and students have increased 7.0 percent during the year despite a declining demographic trend, and early indications show continued growth, 3 percent, for the new school year. • The Board proposes an ordinary dividend of SEK 2.25 (1.75) per share and intends to propose a voluntary share redemption or buyback program.
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We see clear progress towards our goal of 100 percent Focus on literacy delivers results – 90 percent of our children in first grade can read 100 Read A March June +2,4 +4,7 Spring 23 Spring 24 Spring 25
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Increased profit YoY - 19% CAGR EBIT development Adj. EBIT development 2007 – 2024/25 4 70 95 181 227 381 389 485 596 567 638 670 634 728 934 1 001 964 1 097 1 281 2007 2008 2009 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 +19% Adj. EBIT MSEK
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On our way towards 50 percent international business and adult education 5 Net sales 1 478 15,8%4,0% 2013/14 67,4% 16,0% 16,5% 2014/15 68,0% 15,9% 16,0% 2015/16 65,3% 16,6% 18,1% 2016/17 66,1% 15,4% 18,5% 2017/18 67,5% 19,9% 2018/19 67,2% 12,7% 20,1% 2019/20 67,1% 13,9% 19,0% 2020/21 67,4% 12,6% 20,0% 2021/22 66,4% 10,5% 23,1% 2022/23 63,2% 9,8% 27,0% 2023/24 60,7% 9,5% 80,2% 2024/25 6 372 8 160 8 608 9 516 10 805 29,9% 12 268 13 335 14 334 15 534 17 331 19 021 11 710 Swedish preschools and schools Adult education International preschools and schools SEK m
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Summary of Independent School Policy Proposals 6 Independent School Government Inquiry – Interim Report 1. The Profit Inquiry (PI) 2. The School Voucher Inquiry (SVI) 3. The Principle of Publicity (PP) -2022 2023 2024 2025 2026 2027 2028 2. SVI SVI: Deduction of 6% on school voucher for municipality supply responsibility PI: Government grants withdrawn in case of profit distributions Most of the PI suggested restrictions does not pose significant problem for us PI, PP: Increased administration → likely increased consolidation → benefits larger players - 1. PI -Status/Timing -Where we are today - 3. PP Government Inquiry – Interim Report Consultati on Round Draft Bill Review by the Council on Legislation Vote in Parliament Government Inquiry – Interim Report Consultation Round Draft Bill Review by the Council on Legislation Vote in Parliament Consultation Round Draft Bill Review by the Council on Legislation Vote in Parliament The earliest likely adoption of above proposals is January 2028 Law in place?
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Continued strong growth, all segments contributed to the improved adj. EBIT for the third quarter in a row Key figures Q4 2024/25, excluding effects of IFRS 16 (SEK m) 2024/25 2023/24 Change # of Students 113,530 109,510 3.7% Net sales 5,118 4,856 5.4% EBIT 454 415 9.4% EBIT-margin 8.9% 8.5% 0.4 p.p. Adj. EBIT 467 415 12.5% Adj. EBIT margin 9.1% 8.5% 0.6 p.p. Earnings after tax 339 277 22.4% Earnings per share1, SEK 3.43 2.73 25.5% Free cash flow 532 514 3.5% 1) Earnings per share before dilution and based on average number of shares during the period. • Student numbers grew by 3.7 percent. • Net sales increased by 5.4 percent and organic growth was 5.6 percent, adjusted for currency effect -1.3 percent. The acquisition of Yes! (April 2025) contributed 1.1 percent. • Adjusted EBIT was SEK 467 million (415) and adjusted EBIT-margin increased to 9.1 percent (8.5). • Strong growth and all segments contributed to the improved adj. EBIT. • EBIT (excluding IFRS16) was SEK 454 million (415). Items affecting comparability amounted to SEK -13 million in the quarter (-). • Free cash flow, SEK 532 million (514), was slightly less than last year. 7 Highlights Q4
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8 Highlights Q4 467 454 578 415 124 Adj EBIT 23/24 Preschool & Int. Compulsory School Upper Secondary Schools Adult Education Group Adj EBIT 24/25 -13Items affecting comparability EBIT 24/25* IFRS 16 EBIT 24/25 19 15 5 11 3 Preschool & International: The acquisition of Yes! contributed positively to the quarter. Compulsory School: Continued stable development. Acquisition and expansion units had a positive impact on EBIT in the quarter. Upper Secondary School: Solid development with an increased profit and a profitability at par with last year. Adult Education: Increase in volumes in the higher vocational education had a positive impact on operating profit. Group: Group costs were somewhat lower than last year. Items affecting comparability: SEK -13 million (-) relating to transaction costs in Germany, as well as gain from an asset acquisition, and a write-down of an IT- project in Norway. * Excluding IFRS 16 Strong growth, all segments contributed to the improved adj. EBIT
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Segment reportingQ4 9
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Preschool & International Compulsory School Upper Secondary School Adult Education Age group 0-6 yrs 6-16 yrs 16-18 yrs 18+ yrs Geography # FTE* 7,714 3,824 3,854 1,038 Net sales split* 37% 23% 30% 9% 4 business segments and presence in 5 countries We operate throughout the education chain *) 2024/25 10
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Preschool and International Segment Quarter results (SEK m) 2024/25 2023/24 Change Net sales 1,962 1,876 4.5% EBIT 156 150 4.0% EBIT-margin 8.0% 8.0% 0 p.p. Adj. EBIT 169 151 11.9% Adj. EBIT-margin 8.6% 8.0% 0.6 p.p. # of children 37,797 35,475 6.5% • The number of children increased by 6.5 percent driven by international expansion. • Net sales were SEK 1,962 million. Organic growth was 5.8 percent, adjusted for currency development and the acquisition of Yes! (April 2025). • Adjusted EBIT was SEK 169 million (151) with a stable margin of 8 percent. The acquisition of Yes! contributed positively to the quarter. • During 2025, 33 units were acquired, seven new units were opened, two units were merged to one, and one was closed. • The acquisition of Yes! Kinderopvang (April) in the Netherlands contributed with 22 preschools and 1,400 preschool places. • The plan is to open about 10 new preschools in 2025/26, of which eight in Germany, one in Finland and one in Norway. Acquisitions and new openings continue to drive growth 11 0% 2% 4% 6% 8% 10% 0 400 800 1200 1600 2000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021/22 2022/23 2023/24 2024/25 SEK m Net sales EBIT-margin % EBIT-margin % R12M
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Compulsory School Segment • Number of children and students increased by 4.8 percent. Net sales grew 9.7 percent as a result of increased number of students and annual voucher revisions. • Acquisition and expansion units had a positive impact on EBIT in the quarter. Adjusted EBIT was SEK 114 million (99), adjusted EBIT margin increased compared to last year, 9.5 percent (9.1). • There were no items affecting comparability in the quarter. • At the close of the first quarter, four compulsory schools with integrated preschools were acquired. They contribute with about 1,435 children and students, of which 1,071 on average during the first twelve months. Continued stable development. Acquisition and expansion units had a positive impact on EBIT in the quarter. 12 Quarter results (SEK m) 2024/25 2023/24 Change Net sales 1,197 1,091 9.7% EBIT 114 99 15.2% EBIT-margin 9.5% 9.1% 0.4 p.p. Adj. EBIT 114 99 15.2% Adj. EBIT-margin 9.5% 9.1% 0.4 p.p. # of children 30,795 29,377 4.8% 0% 2% 4% 6% 8% 10% 12% 0 200 400 600 800 1000 1200 1400 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021/22 2022/23 2023/24 2024/25 SEK m Net sales EBIT-margin % EBIT-margin % R12M
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Upper Secondary School Segment • Student numbers increased by 0.6 percent. The overview of the unit portfolio, initiated in 2023, has continued. Adjusted for units that are to be closed, the number of students increased by 1.3 percent. • Net sales increased by 2.7 percent as a result of more students and annual voucher revision. • Adjusted EBIT increased in the quarter to SEK 184 million (179). Corresponding to a margin of 12.2 procent (12.2). Stable growth and profitability 13 Quarter results (SEK m) 2024/25 2023/24 Change Net sales 1,505 1,465 2.7% EBIT 184 179 2.8% EBIT-margin 12.2% 12.2% 0 p.p. Adj. EBIT 184 179 2.8% Adj. EBIT-margin 12.2% 12.2% 0 p.p. # of children 44,938 44,658 0.6% 0% 2% 4% 6% 8% 10% 12% 14% 16% 0 200 400 600 800 1000 1200 1400 1600 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021/22 2022/23 2023/24 2024/25 SEK m Net sales EBIT-margin % EBIT-margin % R12M
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Adult Education Segment • Net sales increased by 7.3 percent to SEK 454 million (423), due to increased number of students higher vocational education. • EBIT and EBIT-margin increased to SEK 34 million (23) and 7.5 percent (5.4). The improvement in operating profit was for the most part attributable to the increase in volumes in the higher vocational education business. • Rolling 12 months, the profitability has continued to improve for the seventh consecutive quarter, 11.5 percent. • Surveys conducted SCB’s (Statistics Sweden), indicate that that the unemployment rate in Sweden was 9 percent in May. Profitability improved for the eight consecutive quarter 14 Quarter results (SEK m) 2024/25 2023/24 Change Net sales 454 423 7.3% EBIT 34 23 47.8% EBIT-margin 7.5% 5.4% 2.1 p.p. Adj. EBIT 34 23 47.8% Adj. EBIT-margin 7.5% 5.4% 2.1 p.p. 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% 0 100 200 300 400 500 600 700 800 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021/22 2022/23 2023/24 2024/25 MSEK Nettoomsättning, MSEK EBIT-marginal % EBIT-marginal % R12M
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Financial position Q4 15
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Free cash flow and investments • AcadeMedia has a strong Free cash flow. • Swings between years are mainly an effect of changes in net working capital. Strong free cash flow can fund investments in current operations and growth SEK m • Capex in current operations (”maintenance capex”) amounts to 1.5 percent of net sales following fewer new openings and expansion units than the previous years. Nine new openings in 2024/25 (15). • Growth capex can largely be funded by free cash flow except for large acquisitions. FCF as % of adj. EBITDA Capex and Maintenance capex as % of net sales SEK m 16 688 356 805 1 117 922 792 1 124 1 109 75% 38% 75% 86% 66% 56% 70% 62% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 0 200 400 600 800 1 000 1 200 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 Free cash flow FCF as % of EBITDA 131 174 134 107 148 109 120 148 98 131 115 128 152 167 151 12910 22 17 10 2 7 13 11 610 34 48 232 214 169 563 335 121 197 60 -39 20 29 25 54 2,2% 2,8% 2,2% 1,8% 2,1% 1,8% 1,6% 1,5% -3,0% -2,0% -1,0% 0,0% 1,0% 2,0% 3,0% 4,0% -200 0 200 400 600 800 1 000 1 200 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 Investments in leased property Investments in equipment Other maintanence capex Other expansion capex Investments in property (net) Maintenance capex as % of net sales
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Financial position • Net debt including and excluding IFRS 16 was lower than last year. • Leverage ratio (excl IFRS 16) was below last year 0.5x (0.6) and well below AcadeMedia’s financial target of maximum 3.0x. • Property related lease liabilities amounted to SEK 10,379 million as per 30 June 2025 (10,758). • Book value of property decreased to SEK 1,173 million (1,108). • Debt ratio* including IFRS and excluding IFRS decreased compared to last year. • During the reporting period, new loan agreements were signed, securing financing until 2028 with a possibility to extend until 2030. Financial position remains strong Net debt and Net debt / Adj. EBITDA Max 3.0 17 SEK m 2024/25 30 Jun 2023/24 30 Jun Change Total equity (excl IFRS 16) 7,218 6,769 6.6% Net debt (excl IFRS 16) 953 1,020 -6.6% Net debt (incl IFRS 16) 11,332 11,778 -3.8% Property related lease liabilities 10,379 10,758 -3.5% Property BV 1,173 1,108 5.9% Net debt / Adj. EBITDA incl IFRS 16 2.7 3.2 -14.6% Net debt / Adj. EBITDA excl IFRS 16 0.5 0.6 -17.0% Debt ratio, incl IFRS 16 53.4% 55.1% -1.7 p.p. Debt ratio, excl IFRS 16 8.1% 8.9% -0.8 p.p. *) Debt ratio: defined as net debt/ total assets excluding cash and cash equivalents 2 266 1 797 1 222 987 825 1 020 953 2,4 1,7 0,9 0,7 0,6 0,6 0,5 0,0 0,5 1,0 1,5 2,0 2,5 3,0 0 500 1 000 1 500 2 000 2 500 18/19 19/20 20/21 21/22 22/23 23/24 24/25 Net debt exkl IFRS 16 Net debt exkl IFRS 16/ Adj. EBITDA
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(MSEK) 2024/25 2023/24 Change # of Students 111,290 103,994 7.0% Net sales 19,021 17,332 9.7% EBIT 1,254 1,080 16.1% EBIT-margin 6.6% 6.2% 0.4 p.p. Adj. EBIT 1,281 1,097 16.8% Adj. EBIT margin 6.7% 6.3% 0.4 p.p. Earnings after tax 908 740 22.7% Earnings per share 1), SEK 9.01 7.09 27.0% Free cash flow (FCF) 1,109 1,124 -1.4% 2024/25 – strategic international acquisitions, continued strong organic growth and stable economic development Key figures full year 2024/25, excluding effects of IFRS 16 18 Summary full year 2024/25 • Student growth 7.0 percent • Sales grew by 9.7 percent, and the organic growth was 5.8 percent, adjusted for currency effect -0.7 percent. Acquisitions contributed 4.7 percent. • Strong adjusted operating profit and margin with all segments contributing to the positive development. Adjusted EBIT was SEK 1,281 million (1,097), margin 6.7 percent. • Profitability was positively impacted by higher school vouchers in the international business and improved cost coverage. Also, in the Adult Education Segment continued growth in the higher vocational education contributed positively. • Strong Free cash flow SEK 1,109 million. • In total, 45 new units added during the year, including 22 preschools in the Netherlands through the acquisition of Yes!.
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19 Highlights Full-year 1 281 1 254 1 752 1 097 498 Adj EBIT 23/24 57Preschool & Int. 27Compulsory School 47Upper Secondary Schools 54Adult Education -2Group Adj EBIT 24/25 -27Items affecting comparability EBIT 24/25* IFRS 16 EBIT 24/25 Preschool & International: New openings and acquisitions as well as higher school vouchers in Germany had a positive impact on EBIT. Compulsory School: Continued stable development. Acquisition and expansion units had a positive impact on EBIT. Upper Secondary School: Higher capacity utilisation and good cost control had a positive impact on EBIT. Adult Education: Increase in volumes in the higher vocational education had a positive impact on operating profit. Group: Group costs were somewhat higher than last year. Items affecting comparability: SEK -27 million (-17) relating to restructuring costs of compulsory schools in Sweden, transaction and restructuring costs in the Netherlands, transaction costs in Germany, as well as gain from an asset acquisition and a write-down of an IT-project in Norway. * Excluding IFRS 16 Strong growth, all segments contributed to the improved adj. EBIT
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Financial performance vs targets Growth above and Profitability just below the financial targets Financial targets are unchanged • Adj. EBIT margin of 7-8% over timeProfitability2 7-8% 6.7% (6.3%) • Annual revenue growth rate of 5-7% including organic growth and smaller bolt-on acquisitions but excluding larger strategic acquisitions and FX Growth 5-7% 5.8%1 (7.3%) • Net debt / adj. EBITDA below 3.0x • Leverage may temporarily, exceed the maximum level Capital structure2 <3.0x 0.5x (0.6x) • Free cash flow primarily to be reinvested • Excess cash distributed to the shareholders while still maintaining quality and leverage targets Use of free cash flow n.a. 2.25 SEK/ share (1.75) FY 24/25 (FY 23/24) 1 FY24/25 vs FY 23/24 2 Defined excluding effects of IFRS 16 20
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Q&A 21
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This presentation may contain forward-looking statements which reflect AcadeMedia’s current view on future events and financial and operational development, and the current expectations of the AcadeMedia Group’s management. Forward- looking statements are all statements that do not relate to historical facts and events and such statements and opinions pertaining to the future that, by example, contain wording such as “believes”, “estimates”, “anticipates”, “expects”, “assumes”, “forecasts”, “intends”, “could”, “will”, “should”, “would”, “according to estimates”, “is of the opinion”, “may”, “plans”, “potential”, “predicts”, “projects”, “to the knowledge of” or similar expressions, which are intended to identify a statement as forward-looking. Although the management deems that the expectations presented by such forward-looking information are reasonable, no guarantee can be given that these expectations will prove correct. Forward-looking statements are subject to risks, uncertainties, and other factors which may entail that the actual results may differ materially from what is stated in the forward-looking information. 22
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23 change through education