Academedia Ab · OMXSTO:ACAD
Academedia Ab — Q1 2019/20 Earnings Presentation
18 slides from Academedia Ab's earnings presentation, Oct 23, 2019
Slide 1: Interim Report July – September 2019
Interim Report July – September 2019 2019-10-23 1
Slide 2: Today's presenters
Today’s presenters Marcus Strömberg Eola Änggård Runsten Chief Executive Officer Chief Financial Officer With AcadeMedia With AcadeMedia since 2005 since 2013 2
Slide 3: CEO introduction
CEO introduction • 12 new schools, whereof six in Germany • Organic revenue growth of 6.8% despite some restructuring of Swedish preschool portfolio. • EBIT improved by 29 percent to 75 MSEK (58) excluding effects of IFRS 16 and EBIT-margin improved to 3.0 (2.5) percent, albeit in a small quarter. •
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: 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 6: Key highlights Q1 2019/20
Key highlights Q1 2019/20 Solid organic growth and stable situation in Adult Education Comments for Q1 2019/20 Key figures for Q1 2019/20, excluding effects of IFRS 16 • Student numbers grew by 3.4 percent in school segments following strong organic 2019/20 2018/19 Change growth including 12 new est
Slide 7: Key highlights Q1 2019/20 (cont.)
Key highlights Q1 2019/20 (cont.) Adult and Compulsory Schools contribute to EBIT improvement (SEK million) Preschool: Increased staffing levels as well as higher Adj EBIT 18/19 52 pension costs in Norway are in line with prior communicated levels. This has been partially offset by earnings growth i
Slide 8: 12 month rolling figures Q1 2019/20
12 month rolling figures Q1 2019/20 Adult Education recovery improves margins Comments for 12 month rolling figures Key figures for Q1 R12 2019/20 vs FY 2018/19 • 12 month rolling net sales is approaching 2019/20 Change* 12 000 MSEK and is continuously at all R12 2018/19 time high. Net sales 11,875
Slide 9: Preschools
Preschools Improvements in Sweden and Germany offset increased staff costs in Norway Comments for Q1 2019/20 Key figures for Q1 2019/20 • Segment created 1 July 2019 and includes preschools in Sweden (107 units), Norway (102 2019/20 2018/19 Change units) and Germany (44 units). In total 253 Net sale
Slide 10: Compulsory Schools
Compulsory Schools Strong organic growth renders improved margins Comments for Q1 2019/20 Key figures for Q1 2019/20 • Segment created July 1st, 2019 and comprises 108 compulsory schools in Sweden under two 2019/20 2018/19 Change brands. Net sales 594 565 5.1% • Number of students increased by 3.0 p
Slide 11: Upper Secondary Schools
Upper Secondary Schools Strong growth and stable earnings Comments for Q1 2019/20 Key figures for Q1 2019/20 • Four new schools started autumn of 2019. New 2019/20 2018/19 Change establishments in 2018 and 2017 also contribute to volume growth which amounted to Net sales 814 750 8.5% 4.8 percent. EB
Slide 12: Adult Education (Sweden)
Adult Education (Sweden) Recovery is ongoing and margin trend is positive Comments for Q1 2019/20 Key figures for Q1 2019/20 •• Revenues Net salesincreased increased by by 9,17.6 percent mainly percent inbecause the the number of students increased by 6,0 percent 2019/20 2018/19 Change quarter. • EB
Slide 13: 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 77% 1 200 4,0% 1 000 75% 80% 2,8% 2,9% 900 1 000 3,0% 70% 2,2% 800 1,8% 1,7% 55% 60% 800 2,0% 700 52% 610 688 50%
Slide 14: Financial position
Financial position Financial position continues to improve. IFRS 16 has large impact Net debt and Net debt / Adj. EBITDA • Cash flow is negative at the beginning of the 3,1 Max 3.0 2,9 school year, which is a normal seasonal 2,5 2,4 2,4 2,6 effect mainly related to working capital. Net 2 342 2 649 2
Slide 15: Financial performance vs targets
Financial performance vs targets Performance largely in line with targets. Margin improving Q1/R12M Financial targets are unchanged (FY 18/19) • Annual revenue growth rate of 5-7% including organic growth and smaller bolt-on acquisitions 5.2%1 Growth 5-7% but excluding larger strategic acquisitions
Slide 16: Katarina Wilson
Katarina Wilson CFO as of 1 November 2019 16
Slide 17: Thank you, questions?
Thank you, questions? 17
Slide 18: 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