Eeducation Albert Ab · OMXSTO:ALBERT
Eeducation Albert Ab — Q1 2024 Earnings Presentation
30 slides from Eeducation Albert Ab's earnings presentation, May 8, 2024
Slide 1: Albert Group Q1 2024 report presentation
Albert Group Q1 2024 report presentation 8 May 2024
Slide 2: Today's presenters
Today’s presenters Jonas Mårtensson Anne-Louise Wirén Katarina Strivall CEO Deputy CEO CFO 2
Slide 3: Albert at a glance
Albert at a glance Leading Global B2B+B2C Nordic EdTech Group with 6 product brands with Dual revenue streams content in line with several sub-brands sold for predictability and curriculum on more than 10 markets scalability Stable sales Profitability Funded Despite challenging Clear path to profitabi
Slide 4: Agenda
Agenda 1 2 3 4 About Albert Q1 results Looking Q&A forward 4
Slide 5: Agenda
Agenda 1 2 3 4 About Albert Q1 results Looking Q&A forward 5
Slide 6: 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 declining and socioeconomic inequalities increase 6
Slide 7: Help every child reach their full potential through fun and personalised learning
Help every child reach their full potential through fun and personalised learning 7
Slide 8: Learning ecosystem for School and Home
Learning ecosystem for School and Home School Home Teacher Parents
Slide 9: Since 2022 - Focus on building the ecosystem
Since 2022 - Focus on building the ecosystem TARGET GROUP PRODUCTS MARKET & DISTRIBUTION School Teacher Sweden, Norway, Denmark, Finland, Maths, read & spell Poland, UK Home Parents
Slide 10: Since 2022 - Focus on building the ecosystem
Since 2022 - Focus on building the ecosystem TARGET GROUP PRODUCTS MARKET & DISTRIBUTION Maths, read & spell UK STEM US Films Sweden School Teacher Sweden, Norway, Denmark, Finland, Maths, read & spell Poland, UK Languages France Play learning Home 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 8 strong brands with global presence
…under 8 strong brands with global presence
Slide 13: 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 14: Agenda
Agenda 1 2 3 4 About Albert Q1 results Looking Q&A forward 14
Slide 15: Profitability programme
Profitability programme Improve ● Find more efficient ways ● B2B close to profitability to organise Focus more on ● Risks lower efficiency & capture ● Decrease overhead costs B2B ● Revenue streams stabler synergies ● Reduce personnel costs ● Focus on current products ● Cost-conscious mindset Maximise ●
Slide 16: Timeline for execution and financial effects
Timeline for execution and financial effects Profitability programme launched Most one-time restructuring costs taken Some one-time restructuring costs taken Q1 Q2 Q3 Q4 Q1 Q2 - Significant negative one-time impact - Minor negative one-time impact + Significant positive recurring impact + + + + Significa
Slide 17: Focus on B2B
Focus on B2B WHAT? ■ Sales to the education sector (B2B) continues to increase, representing 58% of revenues in Q1 ■ All B2B entities show YoY Net Sales growth in Q1 ■ High loyalty and renewal rate in existing markets ■ Several new big deals won in England and the US WHY? ■ Education sector represen
Slide 18: Maximising current business in B2C
Maximising current business in B2C WHAT? ■ Improved Albert Junior in Poland (product and marketing) resulting in doubled sales in the Easter campaign ■ Holy Owly Math continues to grow in France and is the 4th best selling B2C product in our portfolio WHY? ■ We prioritise maximising current business
Slide 19: New organisation launched 1st April
New organisation launched 1st April WHAT? B2B B2C Marketing & Marketing & ■ A more united organisation with shared mission, sales sales vision and objectives WHY? RoW RoW ■ Stronger functions that unite competences for best practice and support Product development ■ Simplified structure that is easie
Slide 20: Financials: Q1 negative and then positive trend
Financials: Q1 negative and then positive trend Profitability programme launched Most one-time restructuring costs taken Some one-time restructuring costs taken Q1 Q2 Q3 Q4 Q1 Q2 - Significant negative one-time impact - Minor negative one-time impact + Significant positive recurring impact + + + + Sign
Slide 21: Net sales: stable net sales
Net sales: stable net sales ● Net sales 41.6 MSEK (42.0 MSEK) ● Growth in net sales was -1% from Q4 2023 to Q1 2023 -1% ● Acquisitions contributed to 7% of 67% growth GR CA ● Organic sales declined -8% which is due to less focus on B2C ● Strategy has been to maintain sales in a cost efficient way 21
Slide 22: EBITA: Temp decrease due to restructuring
EBITA: Temp decrease due to restructuring ● EBITA -16 MSEK ● One time costs for profitability One time effect (profitability program) programme 2.7 MSEK ● EBITA adjusted for one time costs -1 -13.6 MSEK ● EBITA decrease YoY impacted by: -10 -13.6 ○ Staff costs to build Group -2.8 => addressed in restr
Slide 23: Cash flow: Strong due to seasonality
Cash flow: Strong due to seasonality +220% ● Cash flow +8 MSEK in Q1 ● Q1 is always in cash flow, due to high share of annual subscriptions invoiced and paid ● 2024 Q1 extraordinary strong due to higher share of invoices already paid, will reduce in Q2 ● Period end cash balance 86 MSEK, which is up fro
Slide 24: Agenda
Agenda 1 2 3 4 About Albert Q1 results Looking Q&A forward 24
Slide 25: Four step plan to profitable growth
Four step plan to profitable growth Next: Now: Grow towards vision 2023: Reach profitability -2022: Lay solid foundation Build market position ● Grow existing business ● Switch from Growth to ● Sustain sales and adapt ● Become leading edtech through investments in Profitability focus cost structure pla
Slide 26: Four step plan to profitable growth
Four step plan to profitable growth Net sales Next: EBITA Now: Grow towards vision 2023: Reach profitability -2022: Lay solid foundation Build market position -13* -10* -16 *Adjusted for one time effects 26
Slide 27: Actions to reach profitability
Actions to reach profitability ■ Reduce churn in Scotland Revenues B2B ■ Win new business in England ■ Sales synergies Sumdog + Strawbees ■ Leverage Albert Junior and Holy Owly Revenues B2C ■ Capture full potential in existing markets ■ Scale to new markets for more customer acquisition opportunities
Slide 28: Takeaways
Summary Takeaways Journey to profitability accelerated through profitability programme. Cash at hand will take us to positive cash flow. Business is stable despite challenging market conditions and focus on executing the restructuring. Several Group synergies captured. New organisational structure with
Slide 29: Agenda
Agenda 1 2 3 4 About Albert Q1 results Looking Q&A forward 29
Slide 30: Questions & Answers
Questions & Answers 30