Academedia Ab · OMXSTO:ACAD
Academedia Ab — Q3 2016/17 Earnings Presentation
19 slides from Academedia Ab's earnings presentation, May 10, 2017
Slide 1: Interim Report July 2016 - March 2017
Interim Report July 2016 - March 2017 2017-05-10 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 • Continued strong volumes in Adult education • Revenue growth was solid in all three school segments but margins were affected primarily by higher staff costs • Law on “Equal Terms” should secure fair cost compensation long-term • Three new preschools were acquired and one new esta
Slide 4: Employee satisfaction continues to improve
Employee satisfaction continues to improve 4
Slide 5: Largest independent education provider in Northern Europe
Largest independent education provider in Northern Europe Overview Geographical presence and selected brands (Q3) • Largest independent educational services provider in Northern Europe Country Total • Comprehensive educational offering • Unique quality assurance model – key for sustainable growth St
Slide 6: Key highlights Q3 2016/17
Key highlights Q3 2016/17 Continued strong growth in adult segment Key figures for Q3 2016/17 • Student numbers increased in all segments. Revenue growth was 2016/17 2015/16 Change boosted by acquisitions and high volumes in the Adult segment # of Students 66,299 63,716 4.1% Net Sales 2,540 2,316 9.
Slide 7: Q3 2016/17 – 12 month rolling figures
Q3 2016/17 – 12 month rolling figures Key figures for Q3 R12 2016/17 vs FY 2015/16 • 12 month rolling sales and EBIT are at all time high thanks to R12 2016/17 FY 2015/16 Change volume growth especially in the Net Sales 9,287 8,611 7.9% Adult segment EBIT 623 535 16.4% EBIT-margin 6.7% 6.2% 0.5 p.p.
Slide 8: Pre- and Compulsory Schools (Sweden)
Pre- and Compulsory Schools (Sweden) Growth could not compensation for increased staff costs Comments for Q3 2016/17 Key figures for Q3 2016/17 • Overall student numbers increased by 3.5% 2016/17 2015/16 Change • Three preschool acquired and one new Net Sales 983 933 5.4% establishment EBIT 59 79 -2
Slide 9: Upper Secondary Schools (Sweden)
Upper Secondary Schools (Sweden) Increased capacity utilization. Preparing for expansion Comments for Q3 2016/17 Key figures for Q3 2016/17 • Overall student numbers increased by 2.2% • Revenues increased by 9,1 percent mainly because 2016/17 2015/16 Change • Revenues the number increased of student
Slide 10: Upper Secondary Schools (Sweden): New establishment ProCivitas in Stockholm
Upper Secondary Schools (Sweden) New establishment ProCivitas in Stockholm • ProCivitas is an academically oriented Upper Secondary School for students with high motivation to study • With this new establishment, AcadeMedia increases the ProCivitas family to five units, located in Växjö, Malmö, Hels
Slide 11: Upper Secondary Schools (Sweden): New establishment Rytmus in Borlänge
Upper Secondary Schools (Sweden) New establishment Rytmus in Borlänge • Rytmus is an academically oriented Upper Secondary School with focus on music • The new school in Borlänge will be an addition to current Rytmus operations with units in Stockholm, Göteborg, Malmö and Örebro • The new unit plans
Slide 12: Adult Education (Sweden)
Adult Education (Sweden) Continued strong growth as well as margin improvement Comments for Q3 2016/17 Key figures for Q3 2016/17 • Participant volumesby Revenues increased were high rendering 9,1 percent revenues mainly because 2016/17 2015/16 Change 14.6% the higher number than lastincreased of st
Slide 13: Adult Education (Sweden) Cont.
Adult Education (Sweden) Cont. Several large and profitable contracts need to be re-tendered Market • The market is driven by contract tenders rather than a direct effect of immigration. There is a solid underlying growth in the market. Total market Adult Education in Sweden 2015 • The contract tend
Slide 14: Preschools (International)
Preschools (International) New starts and bolt-on acquisitions provide growth Comments for Q3 2016/2017 Key figures for Q3 2016/17 • Overall child numbers increased by 11.5% 2016/17 2015/16 Change • Revenue growth for third quarter was 23.9%. The increase mainly relates to acquisitions and new Net S
Slide 15: Preschools (International) Cont.
Preschools (International) Cont. Acquisition of Stepke strengthens German platform Rationale for deal Key figures for Q3 2016/17 • 7 preschools and 3 mobile preschools with a total of 640 children and 200 employees Joki Stepke Total • Access to new German regions, Nordrhein- Number of units 7 10 17
Slide 16: Financial position
Financial position Improved net debt and leverage ratio below maximum target Net Debt and Net Debt / Adj. EBITDA 5,0 4,5 3 500 4,0 Target < 3.0 3 000 • Capital employed has increased during 3,3 3,1 3,0 2 500 2,7 2,7 3,0 2 000 the last 12 months by SEK 363 million 2,0 2 927 2 629 2 356 1 500 2 342 22
Slide 17: Seasonality varies between segments
Seasonality varies between segments Q3 shows normal seasonality in school segments Quarterly seasonality – Net sales and adj. EBIT 2014/15 - 2016/17 Comments • School segments SEKm continue to show normal annual seasonality • Fourth quarter of last year was exceptionally strong • Adult segment is ex
Slide 18: Financial performance according to plan
Financial performance according to plan Q3-R12 Financial targets (FY15/16) • Annual revenue growth rate of 5-7% including 7.9%* Growth 5-7% organic growth and smaller bolt-on acquisitions but excluding larger strategic acquisitions (5.5%) 7.0% Profitability 7-8% • Adj. EBIT margin of 7-8% over time
Slide 19: Summary of Strategic Priorities
Summary of Strategic Priorities Continuous development of offering and quality level to remain the most attractive choice Improved capacity utilization in existing units Establishment of new units and bolt-on acquisitions Further strategic acquisitions possible longer term Build on current