Slide 1: Year-end report Q4 2022
Year-end report Q4 2022 24 February 2023
Slide 2: Contents
Contents 1 Introduction to Albert 2 Q4 and 2022 highlights 3 Acquisitions 4 Q4 financials 5 Summary 6 Q&A
Slide 3: Today’s speakers
Introduction to Albert Today’s speakers Arta Mandegari Salman Eskandari Martin Dahlgren CEO / Co-founder Dep CEO / Co-founder Head of Finance • Serial entrepreneur, • Management consulting • 7 years experience from previous Co-founder of background from finance and accounting, Tesenso, Qvido and Tri
Slide 4: Our vision is to give every child in Europe a custom learning experience
Introduction to Albert Our vision is to give every child in Europe a custom learning experience 4
Slide 5: Started with math, moving into a one-stop-shop for kids’ learning
Introduction to Albert Started with math, moving into a one-stop-shop for kids’ learning Albert at a glance Albert is a leading app-based EdTech Leading platform for children 1-16 years old with a vision to give every child in Europe a custom learning experience ~718k 155 msek Nordic EdTech Group wi
Slide 6: Contents
Contents 1 Introduction to Albert 2 Q4 and 2022 highlights 3 Acquisitions 4 Q4 financials 5 Summary 6 Q&A
Slide 7: Summarizing Q4 and 2022…
Summary Summarizing Q4 and 2022… To consolidate the European EdTech market and deliver strong growth was the top priority and was one of the main reasons for the IPO • Communicated a clear M&A agenda → 6 acquisitions in total. Whereof four (4) in FY 2022 and three (3) signed in Q4’22 • Communicated
Slide 8: Contents
Contents 1 Introduction to Albert 2 Q4 and 2022 highlights 3 Acquisitions 4 Q4 financials 5 Summary 6 Q&A
Slide 9: Group pre-acquisitions
Group pre-acquisitions Albert B2C Albert B2B Student Share of Net Sales 75% 25% (proforma as of Q3 2022) Parents Teacher • Customised learning to children within a wide variety of subjects • Personalised educational games for children within mathematics Offering and 800+ movies, books, songs and gam
Slide 10: Rationale behind the acquisitions
Rationale behind the acquisitions Ecosystem benefits ▪ Fragmented global market with no clear leader ▪ Large number of companies with niche offerings (e.g. subjects and teaching medias) targeting students in varying ages – opportunity to consolidate offerings and build a one-stop-shop covering the c
Slide 11: Post acquisitions – B2B share of Net sales up to 49% vs. 25% pre
Post acquisitions – B2B share of Net sales up to 49% vs. 25% pre acquisitions 1 Albert brands Share of group Net sales Target ages Geogr. footprint Existing brands ▪ Offers customised learning to children within a wide variety of subjects 48%2 5-16 B2C ▪ Offers 800+ movies, books, songs and games to
Slide 12: Film och Skola at a glance
Film och Skola at a glance Business overview Rationale / benefits ▪ Founded in 1947 and headquartered in Stockholm, Sweden ▪ B2B cross-sell opportunities between Film och Skola, Strawbees, Sumdog and Jaramba ▪ Used by c. 65% of elementary school pupils in Sweden – Enables B2B sales in the Nordics ▪
Slide 13: Strawbees at a glance
Strawbees at a glance Business overview Rationale / benefits ▪ Founded in 2014 and headquartered in Gothenburg, Sweden ▪ B2B cross-sell opportunities between Strawbees, Film och Skola, Sumdog and Jaramba ▪ Serves 20,000+ schools and 100,000+ homes in 40 countries worldwide – Single sales organisatio
Slide 14: Holy Owly at a glance
Holy Owly at a glance Business overview Rationale / benefits ▪ Founded in 2015 and headquartered in Lille, France ▪ B2C cross-sell opportunities, complementing the Junior platform with a curriculum-based product for children learning new languages ▪ The application has more than 200,000 downloads an
Slide 15: Pro forma Q3 Net Sales c. 190m enabling the group to reach profitability earlier
Pro forma Q3 Net Sales c. 190m enabling the group to reach profitability earlier Group EBITA margin, % B2B share of group Net Sales, % Financial evolution Net Sales, SEKm (481%) (188%) (109%) (98%) (44%) Business model enhancement through introduction of 0% 0% 0% 0% complementing B2B 49% offering in
Slide 16: Contents
Contents 1 Introduction to Albert 2 Q4 and 2022 highlights 3 Acquisitions 4 Q4 financials 5 Summary 6 Q&A
Slide 17: Annual Recurring Revenue – Complemented by B2B
Q4 financials Annual Recurring Revenue – Complemented by B2B ARR - B2C ARR - B2B ARR - MSEK Comments on Q4 2022 +73% • Growth in both paying subscribers and ARPPU • ARPPU increased due to increase in price plans for 28 27 B2C 26 • Growth primarily driven outside of Sweden 28 • B2B currently working
Slide 18: Net sales – Accelerated growth YoY
Q4 financials Net sales – Accelerated growth YoY Net sales, Quarter - MSEK Net sales - ALBERT Net sales - Acquired Comments on Q4 2022 40,0 • Growth in net sales reached 84% in Q4 35,0 +84% 2022 compared to Q4 2021, whereof 27 % 30,0 organic 10,3 11,0 25,0 10,9 4,0 • Growth primarily driven outside
Slide 19: Overview of financials
Q4 financials Overview of financials YoY growth SEKm Q4-2022 Q4-2021 2021-22 Financial metrics Comments on Q4 2022 Q4-Q4 • Growth in net sales reached 83% in Q4 Net sales 34.2 18.5 84% 2022 compared to Q4 2021 Adjusted gross margin % 88% 90% - • 88% increase in ARR primarily on the EBITA (22.8) (16.
Slide 20: Drilled down in key financial figures
Q4 financials Drilled down in key financial figures SEKm Q4-2022 Q4-2021 Comments on Q4 2022 Financial metrics • Increase of R&D expenses. Focus during quarter to Operating result (29.6) (16.6) continue the development of our subjects as well as increase self-developed content in our products Amorti
Slide 21: Financial targets
Q4 financials Financial targets Albert targets to grow net sales on average by more than 50 percent per year Growth in the medium term, of which organic growth will constitute the majority, and to achieve net sales exceeding SEK 500 million for the full year 2025 Profitability Albert targets an EBIT
Slide 22: Contents
Contents 1 Introduction to Albert 2 Q4 and 2022 highlights 3 Acquisitions 4 Q4 financials 5 Summary 6 Q&A
Slide 23: Takeaways
Summary Takeaways M&A focused quarter which sets a great foundation for the the group. 50% of Net sales now stemming from B2B Delivered on our financial goals for FY 2022 and a year ahead from a growth perspective including the M&A’s With lower growth, cash at bank could take the group to profitabil
Slide 24: Contents
Contents 1 Introduction to Albert 2 Q4 and 2022 highlights 3 Acquisitions 4 Q4 financials 5 Summary 6 Q&A
Slide 25: Q&A
Q&A