Eeducation Albert Ab · OMXSTO:ALBERT
Eeducation Albert Ab — Albert Group — Q3 2023 Earnings Presentation
29 slides from Eeducation Albert Ab's earnings presentation, Nov 23, 2023
Slide 1: Albert Group Q3 2023 report presentation
Albert Group Q3 2023 report presentation November 23, 2023
Slide 2: Today’s presenters
Today’s presenters Jonas Mårtensson Katarina Strivall Co-CEO & Head of B2C CFO 2
Slide 3: Albert at a glance
Albert at a glance Albert Group is a leading EdTech ecosystem for children 2-16 years old with a vision to give every child in Europe a custom learning experience Leading 204 msek 94 msek Nordic EdTech Group with annual recurring revenue cash at hand per 30th of content in line with curriculum (ARR)
Slide 4: Agenda
Agenda 1 2 3 4 Management About Albert Q3 results Q&A Meet new Group About us & Highlights from Q3 Questions & management strategy recap of business and Answers financials 4
Slide 5: Agenda
Agenda 1 2 3 4 Management About Albert Q3 results Q&A Meet new Group About us & Highlights from Q3 Questions & management strategy recap of business and Answers financials 5
Slide 6: Meet the new management
Meet the new management Jonas Mårtensson Anne-Louise Wirén Katarina Strivall Co-CEO & Head of B2C Co-CEO & Head of B2B CFO ● MSc Industrial Eng. & Mgmt., ● B.Sc. Business and Economics, ● Economics, Chalmers University of Tech Umeå University IHM Business College ● Exp. business leader, e.g. Care by
Slide 7: Agenda
Agenda 1 2 3 4 Management About Albert Q3 results Q&A Meet new Group About us & Highlights from Q3 Questions & management strategy recap of business and Answers financials 7
Slide 8: Formal education is facing challenges
Formal education is facing challenges Many children struggle with Lack of equal access to Not all children can get the school, especially maths qualified teachers help they need at home School results are getting worse and socioeconomic inequalities increase 8
Slide 9: Help every child reach their full potential through fun and personalized learning
Help every child reach their full potential through fun and personalized learning 9
Slide 10: Learning ecosystem for School and Home
Learning ecosystem for School and Home School Home Teacher Parents
Slide 11: Broad portfolio of learning products…
Broad portfolio of learning products… Digital apps Books Construction & STEM* Films *STEM = Science, Technology, Engineering & Maths
Slide 12: …under seven strong product brands…
…under seven strong product brands…
Slide 13: …with presence in Europe, US and Asia
…with presence in Europe, US and Asia
Slide 14: Our learning impact is proven
Our learning impact is proven 20% of the knowledge gap between socio- economic strong and weak students was closed by using Sumdog for one year1 96% of parents to Albert Junior users experience that their children’s knowledge develop by using the app2 1) Research study conducted in Scotland 2018 2)
Slide 15: Agenda
Agenda 1 2 3 4 Management About Albert Q3 results Q&A Meet new Group About us & Highlights from Q3 Questions & management strategy recap of business and Answers financials 15
Slide 16: What happens around us
What happens around us EDUCATION IN GENERAL TECH & AI IN EDUCATION MACRO ECONOMICS ■ Equal access to qualified teachers ■ Digitalization of schools continue ■ Difficult macroeconomics reduce budgets for schools & households ■ Differences between advantaged ■ General global trend towards and disadvanta
Slide 17: Strawbees launched in the UK
Strawbees launched in the UK WHAT? ■ Hands-on STEM* product Strawbees launched in the UK ■ Market launch supported by local UK team WHY? ■ The UK is a large edtech market ■ We have local presence and knowledge, which gives distribution synergies ■ Grow sales *STEM = Science, Technology, Engineering
Slide 18: Holy Owly launched in Sweden
Holy Owly launched in Sweden WHAT? ■ Language product Holy Owly launched in Sweden ■ Market launch driven by Swedish team WHY? ■ Sweden is a strong home market where marketing and sales synergies can be captured ■ In Sweden learning foreign languages is important (e.g. English, French, Spanish) ■ Bu
Slide 19: Albert Junior launched in France
Albert Junior launched in France WHAT? ■ Flagship math app Albert Junior launched in France under the Holy Owly brand ■ Market launch driven by the French team WHY? ■ Albert Junior is the B2C flagship product accounting for the majority of sales ■ France is a big market in terms of edtech and willing
Slide 20: Group synergies captured
Group synergies captured B2C MARKETING OPTIMIZATION B2B SALES SYNERGIES IN UK INSOURCE TECH DEVELOPMENT ■ B2C marketing costs change ■ Each B2B brand has required its ■ Swedish Film has been quickly due to ads costs, offer own marketing and sales force in dependent on outsourced tech attractiveness,
Slide 21: Focus on profitability gives good results
Focus on profitability gives good results Change to ● In winter 2022/23 the focus was profit focus changed to profitability and since then profitability has improved every +46% quarter ● EBITA profitability has improved by Growth focus 68% from -21.4 MSEK in Q3 2022 to -6.9 MSEK in Q3 2023 ● Growth is sl
Slide 22: Net sales: Acquisitions drive growth
Net sales: Acquisitions drive growth ● Net sales 48 MSEK (33 MSEK) ● Growth in net sales was 46% from Q3 2022 to Q3 2022 +46% ● Growth comes from acquisitions 63% (+57%) GR CA ● Organic sales declined (-11%) which is due to less focus on B2C and majority of organic sales is B2C ● Due to yearly subsc
Slide 23: EBITA: Significant improvements made
EBITA: Significant improvements made ● EBITA -6.9 MSEK (-21.4) ● Improvement in EBITA due to focus on profitability ● Focus on B2B with greater share of resources invested there ● Optimization of B2C marketing across 5 brands and 10 markets ● Cost synergies by utilizing Group in-house resources instea
Slide 24: Cash flow: Improves but varies over the year
Cash flow: Improves but varies over the year Compared to the previous year, cash flow is lower due to the acquired companies: ● Added stock that has increased ● Increased prepaid costs ● Activities (licenses) that are invoiced and paid in full beginning of the year, while the income is accrued over th
Slide 25: Other financial highlights
Other financial highlights ● EBITA Q3 -6.9 (-21.4) MSEK [MSEK] Q3-2023 Q3-2022 ● Improvement in EBITA due to focus Financial metrics on profitability, with less spend in B2C marketing. Operating result (20.6) (28,2) ● Cash flow has decreased due to Amortization of acquired intangible assets 13.7 6.8 in
Slide 26: Takeaways
Summary Takeaways Focus on EBITA and cash flow remains. Journey towards profitability continues. B2B has grown to reach good balance B2B/B2C and strengthened the financial profile of the Group Several synergy projects launched which open up new markets and reduce costs 26
Slide 27: Agenda
Agenda 1 2 3 4 Management About Albert Q3 results Q&A Meet new Group About us & Highlights from Q3 Questions & management strategy recap of business and Answers financials 27
Slide 28: Questions & Answers
Questions & Answers 28
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