Eeducation Albert Ab · OMXSTO:ALBERT
Eeducation Albert Ab — Albert Group — Q4 2023 Earnings Presentation
29 slides from Eeducation Albert Ab's earnings presentation, Feb 23, 2024
Slide 1: Albert Group Q4 2023 report presentation
Albert Group Q4 2023 report presentation February 23, 2023
Slide 2: Today’s presenters
Today’s presenters Jonas Mårtensson Anne-Louise Wirén Katarina Strivall CEO Deputy CEO CFO 2
Slide 3: Albert at a glance
Albert at a glance Albert Group is a leading EdTech ecosystem for children 2-16 years old with a vision to give every child in Europe a Leading Profitability Funded custom learning experience Nordic EdTech Group Clear path to profitability Cash at hand takes with content in line with accelerated by Al
Slide 4: Agenda
Agenda 1 2 3 4 About Albert Q4 results Profitability Q&A programme 4
Slide 5: Agenda
Agenda 1 2 3 4 About Albert Q4 results Profitability Q&A programme 5
Slide 6: Formal education is facing challenges
Formal education is facing challenges Many children struggle with Lack of equal access to Not all children can get the school, especially maths qualified teachers help they need at home School results are getting worse and socioeconomic inequalities increase 6
Slide 7: Help every child reach their full potential through fun and personalized learning
Help every child reach their full potential through fun and personalized learning 7
Slide 8: Learning ecosystem for School and Home
Learning ecosystem for School and Home School Home Teacher Parents
Slide 9: Broad portfolio of learning products…
Broad portfolio of learning products… Digital apps Books Construction & STEM* Films *STEM = Science, Technology, Engineering & Maths
Slide 10: …under eight strong product brands…
…under eight strong product brands…
Slide 11: …with presence in Europe, US and Asia
…with presence in Europe, US and Asia
Slide 12: Our learning impact is proven
Our learning impact is proven 20% of the knowledge gap between socio- economic strong and weak students was closed by using Sumdog for one year1 96% of parents to Albert Junior users experience that their children’s knowledge develop by using the app2 1) Research study conducted in Scotland 2018 2)
Slide 13: Agenda
Agenda 1 2 3 4 About Albert Q4 results Profitability Q&A programme 13
Slide 14: What happens around us
What happens around us PISA 2022 ■ Results of PISA 2022 study published in Dec ‘23 ■ Performance in Maths, Reading and Science declined in all OECD countries ■ Highlights positive correlation between moderate use of high quality digital tools and higher performance in school WHY? ■ The PISA results
Slide 15: Focus on B2B
Focus on B2B WHAT? ■ Sales to the education sector (B2B) has increased from 0% to 55% of total sales ■ Increase is driven by acquisitions and organic development WHY? ■ Education sector represents a stable revenue source in current macroeconomic environment ■ Less capital intensive to grow in B2B ■
Slide 16: New Holy Owly Maths successful in France
New Holy Owly Maths successful in France WHAT? ■ Flagship math app Albert Junior launched in France under the Holy Owly brand in Q3 ■ Marketing of the product in Q4 and Q1 has yielded high number of new subscribers ■ Product usage and customer retention strong WHY? ■ France is a big market, with hig
Slide 17: Film & Skola proprietary streaming platform
Film & Skola proprietary streaming platform WHAT? ■ Developed own streaming platform for feature films as part of Film & Skola, to replace previous 3rd party solution WHY? ■ Gain full control of product and technology ■ Improve margins ■ Serve as groundwork for exploring additional revenue streams 17
Slide 18: Net sales: Acquisitions drive growth
Net sales: Acquisitions drive growth ● Net sales 48 MSEK (34 MSEK) ● Growth in net sales was 41% from Q4 2022 to Q4 2022 +41% ● Growth comes from acquisitions 62% (+60%) GR CA ● Organic sales declined (-19%) which is due to less focus on B2C and majority of organic sales is B2C 18
Slide 19: EBITA: Improvement YoY, one time effects
EBITA: Improvement YoY, one time effects ● EBITA -1.1 MSEK ● One-time positive effect +9.2 MSEK, incl. write downs (-3.8 MSEK) and reversal of earn out (+13 MSEK) ● Normalised EBITA -10.3 MSEK ● Compared to Q3, normalised EBITA impacted mainly by: ○ Exchange rates -3.1 MSEK ○ Periodic effects -2.5 M
Slide 20: Cash flow: Improves & takes us to profitability
Cash flow: Improves & takes us to profitability ● Cash flow -5 MSEK in Q4 ● Cash flow improved both YoY and QoQ due to: ○ Better result from operations ○ Increased operating liabilities due to prepayments from customers in Swedish Film ● Year end cash balance 80 MSEK, takes Albert to positive cash flow +
Slide 21: Other financial key points in Q4
Other financial key points in Q4 ● Earn out related to the Sumdog acquisition has been reversed => One-time positive effect on revenues with 13 MSEK ● Value of acquired companies impaired by 39 MSEK in the parent company due to uncertainty in macro environment and higher interest rates => One-time ne
Slide 22: Agenda
Agenda 1 2 3 4 About Albert Q4 results Profitability Q&A programme 22
Slide 23: Three step plan to profitable growth
Three step plan to profitable growth Next: Grow towards vision Now: Reach profitability 2023: Lay foundation ● Switch from Growth to ● Sustain sales and adapt cost ● Become leading edtech Profitability focus structure player in Europe ● Future-proof management of ● Optimise current business, ● Grow cur
Slide 24: Profitability programme
Profitability programme Improve ● Find more efficient ways ● B2B close to profitability to organise Focus more on ● Risks lower efficiency & capture ● Decrease overhead costs B2B ● Revenue streams stabler synergies ● Reduce personnel costs ● Focus on current products ● Cost-conscious mindset Maximise ●
Slide 25: Timeline for execution and financial effects
Timeline for execution and financial effects Profitability programme launched Most one-time restructuring costs taken Some one-time restructuring costs taken Q1 Q2 Q3 Q4 Q1 Q2 - Significant negative one-time impact - Minor negative one-time impact + Significant positive recurring impact + + + + Significa
Slide 26: Takeaways
Summary Takeaways Journey to profitability accelerated through profitability programme. Cash at hand will take us to positive cash flow. Business is stable despite challenging market conditions. Focus forward is on sales to the education sector (B2B) Several Group synergies captured. New organisational
Slide 27: Agenda
Agenda 1 2 3 4 About Albert Q4 results Profitability Q&A programme 27
Slide 28: Questions & Answers
Questions & Answers 28
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