Academedia Ab · OMXSTO:ACAD
Academedia Ab — FY2018/19 Earnings Presentation
24 slides from Academedia Ab's earnings presentation, Aug 29, 2019
Slide 1: Year-end Report July 2018 - June 2019
F = ¥ 4 oni AY Year-end Report July 2018 - June 2019 2019-08-29 fAcademedia
Slide 2: Marcus Strömberg and Eola Änggård Runsten
Marcus Strömberg Eola Änggård Runsten Chief Executive Officer Chief Financial Officer With AcadeMedia With AcadeMedia since 2005 since 2013 2
Slide 3: Year-end highlights
• Strong finish in the pre- and compulsory school segment, especially compulsory schools. • Revenue growth in the quarter was 5.6 percent of which 5.3 organic. • Adjusted EBIT-margin improved in fourth quarter. For the full year, EBIT-margin improved in the Swedish school segments, but declined in A
Slide 4: Overview, geographical presence and selected brands
Overview Geographical presence and selected brands 18/19 • Largest independent educational services provider in Northern Europe Country Total • Comprehensive educational offering • Unique quality assurance model – key for sustainable growth Students(3) ~167.6k(1) ~9.4k ~2.5k ~179.5k(1) • Multi-brand
Slide 5: Comments and key figures for Q4 2018/19
Comments for Q4 2018/19 Key figures for Q4 2018/19 • Student numbers grew with 4.9 percent in school segments. 2018/19 2017/18 Change • Net sales grew 5.6 percent (5.3 percent # of Students 79,994 76,233 4.9% organically) despite the decline in adult Net sales 3,162 2,993 5.6% education. Organic gro
Slide 6: Adjusted EBIT bridge Q4
(SEK million) Adj EBIT Pre- and Compulsory school: Increased student 207 numbers and capacity utilisation was key to the 17/18 improved earnings in the quarter. Pre- and Compulsory 18 Schools (SE) Upper Secondary school: Strategic effort in Upper Secondary digitalisation, marketing as well as increa
Slide 7: Comments and key figures for full year 2018/19
Comments for full year 2018/19 Key figures for FY 2018/19 vs FY 2017/18 • Volumes increased in all school segments. 2018/19 2017/18 Change • Growth in net sales was reinforced by # of Students 79,493 73,366 8.4% acquisitions (mainly Vindora) but also from Net sales 11,715 10,810 8.4% bolt-on acquisi
Slide 8: Adjusted EBIT bridge full year
(SEK million) Adj EBIT Pre- and Compulsory school: Good organic growth in 670 combination with stabilized personnel cost 17/18 development has improved EBIT and margins. Pre- and Compulsory 21 Schools (SE) Upper Secondary Upper Secondary school: Positive development 52 Schools (SE) following acquisi
Slide 9: Items affecting comparability
Items affecting comparability Q4 Q4 Full yr Full yr Comments to full year figures (SEK m) 18/19 17/18 18/19 17/18 34 MSEK relating to Upper Secondary School and 10 Retroactive revenue 9 - 45 - MSEK to Pre- and Compulsory School Segment - 15 MSEK Adult Education Segment, -14 MSEK Upper Restructuring
Slide 10: Pre- and Compulsory School Q4 2018/19
Comments for Q4 2018/19 Key figures for Q4 2018/19 • Overall child numbers increased 2.0%. 2018/19 2017/18 Change • Good growth in net sales, as a result of volume Net sales 1,136 1,082 5.0% increases and annual voucher revisions. EBIT 86 76 13.2% • Improved EBIT-margin due to god volume growth in e
Slide 11: Upper Secondary School Q4 2018/19
Comments for Q4 2018/19 Key figures for Q4 2018/19 • New establishments in 2018 and 2017 continue 2018/19 2017/18 Change to be growth drivers. Net sales 990 920 7.6% • One bolt-on acquisition in the quarter. EBIT 84 87 -3.4% • EBIT-margin decreased by 1.0 percentage point EBIT-margin 8.5% 9.5% -1.0
Slide 12: Adult Education Q4 2018/19
Comments for Q4 2018/19 Key figures for Q4 2018/19 •• Revenues Net salesincreased decreased by 9,1 by percent mainly 3.8% due because to lower the number of students increased by 6,0 percent 2018/19 2017/18 Change volumes in the business for the Swedish Public • EBIT increasedService. Employment by
Slide 13: Preschool International Q4 2018/19
Comments for Q4 2018/19 Key figures for Q4 2018/19 • Overall child numbers increased by 8.1 percent 2018/19 2017/18 Change which is all categorized as organic growth. Net sales 653 593 10.1% • Two new establishments in Germany and one bolt- on acquisition in Norway were completed in the EBIT 70 97 -
Slide 14: Key figures for the full year 2018/19 by segment
• Pre- and Compulsory Schools Good organic growth in combination with stabilized staff costs rendered improved EBIT and margins. • Upper Secondary Schools Positive development following acquisitions and organic volume growth. • Adult Education Contract transition to lower margins as well as decline
Slide 15: Net debt and cash flow
Net debt and Net debt / Adj. EBITDA • Cash-flow from operations improved to 425 3,1 2,9 2,8 Max 3.0 2,5 2,7 (376) MSEK in the fourth quarter. 2,4 2,4 • Capital employed increased with SEK 242 2 342 2 133 2 179 2 649 2 405 2 505 2 266 million due to investments in property and equipment. 15/16 16/17
Slide 16: Financial targets
FY 18/19 Financial targets (FY 17/18) • Annual revenue growth rate of 5-7% including organic growth and smaller bolt-on acquisitions 4.4% Growth 5-7% but excluding larger strategic acquisitions and (5.8%) FX 5.4% Profitability 7-8% • Adj. EBIT margin of 7-8% over time (6.2%) • Net debt / adj. EBITDA
Slide 17: Preliminary effects of IFRS 16 Leasing; New segment structure
Preliminary effects of IFRS 16 Leasing New segment structure as of July 1, 2019 17
Slide 18: IFRS 16 Leasing effects
• AcadeMedia will apply IFRS 16 Leasing as of the financial year 2019/20. • This involves recalculating operational leases, primarily rented premises, as if they were debt financed assets on the balance sheet. • Preliminary calculations show that the right-of-use assets and lease liabilities will in
Slide 19: IFRS 16: no effect on commercial terms
• No effects on commercial terms. The change is purely accounting related. • Loan covenants apply on a frozen gaap basis, i.e. no impact • No change in lease contract strategy as a result of this accounting change. The duration of the lease contracts with will as currently be based on the stability
Slide 20: Group Management unchanged
Marcus Strömberg, CEO Preschools Compulsory Schools Upper Secondary Adult Education (International) (Sweden) Schools (Sweden) (Sweden) Marcus Strömberg Jens Eriksson Jens Eriksson Christer Hammar Preschools Sweden Preshools Norway Preschools Germany Veronica Rörsgård Marit Lambrechts Kristofer Hamma
Slide 21: Segment reporting before and after 1 July 2019
Segment reporting Segment reporting before 1 July 2019 after 1 July 2019 Net Net 2,328 3,619 Preschool sales sales Preschool International Adj Adj International (Norway & Germany) EBIT 135 EBIT 189 (Norway, Germany and Sweden) Preschools (Sweden) 5.8% 5.2% Net sales 1,290 Adj EBIT 54 4.2% Net Net Pr
Slide 22: Appendix: Preschool International and Compulsory Schools
APPENDIX Preschool International Compulsory Schools Full year Full year (NEW) (Sweden) SEK million, unless otherwise stated 2018/19 2017/18 SEK million, unless otherwise stated 2018/19 2018/19 Number of children/students (average) 20,576 19,471 Number of children/students (average) 24,265 23,314 Net
Slide 23: Thank you — Any questions?
Thank you — Any questions? 23 AcademMedia
Slide 24: Forward-looking statements disclaimer
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 historic