Academedia Ab · OMXSTO:ACAD
Academedia Ab — Q2 2019/20 Earnings Presentation
17 slides from Academedia Ab's earnings presentation, Jan 31, 2020
Slide 1: Interim Report July – December 2019
Interim Report July – December 2019 2020-01-31 1
Slide 2: Today’s presenters
Today’s presenters Marcus Strömberg Katarina Wilson Chief Executive Officer Chief Financial Officer With AcadeMedia With AcadeMedia since 2005 since 2016 2
Slide 3: CEO introduction
CEO introduction • Seven new units in the second quarter contributed to solid organic revenue growth of 6.0 percent. • Profitable growth in the Adult Education Segment where Labour Market Services now represent less than 10 percent of the segment’s total portfolio. • Higher capacity utilization from
Slide 4: Largest independent education provider in Northern Europe
Largest independent education provider in Northern Europe 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 S
Slide 5: Key highlights Q2 2019/20
Key highlights Q2 2019/20 Adult Education and Compulsory School drive EBIT improvement Comments for Q2 2019/20 Key figures for Q2 2019/20, excluding effects of IFRS 16 • Student numbers grew by 3.8 percent in school segments following strong organic 2019/20 2018/19 Change growth including 7 new unit
Slide 6: Key highlights Q2 2019/20 (cont.)
Key highlights Q2 2019/20 (cont.) Adult and Compulsory Schools continue to drive EBIT improvement (SEK million) Preschool: Increased staffing levels and higher Adj EBIT 18/19 139 pension costs in Norway were temporarily offset by higher earnings in Sweden. Preschool 3 Compulsory School: Higher capac
Slide 7: 12 month rolling figures Q2 2019/20
12 month rolling figures Q2 2019/20 Net sales surpassed SEK 12 billion and EBIT R12 at all time high Comments for 12 month rolling figures Key figures for Q2 R12 2019/20 vs FY 2018/19 • 12 month rolling net sales has now 2019/20 Change* surpassed SEK 12 billion. R12 2018/19 Net sales 12,057 11,715 2
Slide 8: Preschools
Preschools Improvements in Sweden temporarily offset increased staff costs in Norway Comments for Q2 2019/20 Key figures for Q2 2019/20 • Segment created 1 July 2019 includes preschools in Sweden (109 units), Norway (104) 2019/20 2018/19 Change and Germany (46). Six new units were added in Net sales
Slide 9: Compulsory Schools
Compulsory Schools Strong organic growth delivered improved margins Comments for Q2 2019/20 Key figures for Q2 2019/20 • Segment created 1 July 2019 includes 109 compulsory schools in Sweden under three 2019/20 2018/19 Change brands. One new unit was acquired in the Net sales 801 752 6.5% period, Po
Slide 10: Upper Secondary Schools
Upper Secondary Schools Earnings affected by strategic efforts driving cost Comments for Q2 2019/20 Key figures for Q2 2019/20 • Student numbers increased by 5.1 percent as 2019/20 2018/19 Change a result of 14 new schools that in total started over the last three years of which four started Net sal
Slide 11: Adult Education
Adult Education Profitable growth and continued positive margin development Comments for Q2 2019/20 Key figures for Q2 2019/20 •• Revenues Net salesincreased increased by by 9,13.9 percent mainly percent inbecause the the number of students increased by 6,0 percent 2019/20 2018/19 Change quarter. •
Slide 12: Free cash flow and investments
Free cash flow and investments Strong free cash flow can fund investments in current operations and growth FCF as % of adj. EBITDA Capex and Maintenance capex as % of net sales MSEK MSEK 1 000 77% 75% 80% 1 200 4,0% 900 70% 2,8% 2,7% 1 000 3,0% 800 2,2% 53% 60% 1,7% 1,8% 700 52% 800 2,0% 688 50% 600
Slide 13: Financial position
Financial position Financial position is stable Net debt and Net debt / Adj. EBITDA • Net debt is somewhat higher than last year, 3,1 Max 3.0 but decreased compared to last quarter. 2,5 2,4 2,4 2,6 2,5 • Leverage ratio improved from previous 2 544 2 490 quarter and is lower than the same period 2 34
Slide 14: Financial performance vs targets
Financial performance vs targets Performance largely in line with targets. Margin improving Q2/R12M Financial targets are unchanged (FY 18/19) • Annual revenue growth rate of 5-7% including organic growth and smaller bolt-on acquisitions 5.6%1 Growth 5-7% but excluding larger strategic acquisitions
Slide 15: IFRS 16 leasing has no commercial impact
IFRS 16 leasing has no commercial impact • The implementation of IFRS 16 has a large impact on AcadeMedia’s financial reporting. This involves recalculating operational leases, primarily leased premises, as if they were debt financed assets on the balance sheet. • IFRS 16 has impacted the financial
Slide 16: Thank you, questions?
Thank you, questions?
Slide 17: 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