AcadeMedia AB (publ)

Good morning, everybody, to a fantastic day in Stockholm. We have a great spring day and finally we see the sun. Welcome to this presentation of the third quarter and the new year of Academedia. Together with me, I'm very happy also to introduce our new CFO, Petter Sylvan, and I will hand over to him in just a few minutes. But first, if we change page, we have a short update. And I must say that we have started the new year in a very good way. The number of students has growth in a stable way. And if we look at the revenue, it's more than 10% up. And it's mainly driven by organic growth and the international expansion. And we also continue to increase our international growth with an acquisition in Finland. So we run now 113 preschools in Finland and it has a revenue of around 1 billion Swedish crowns. So Academedia now have a different sort of education in five countries and we also have small businesses also in Poland and in the UK. And we have also invested a lot in quality. We have increased the number of teachers that have academic results. We have also invested a lot in our school buildings. And also the grade has also been a debate in Sweden. And I must say that no organization has done so much as Academia when it comes to quality. And we continue also our campus strategy with the new campus in Malmö. And in August 2025, we will have 1000 students entering a really fantastic building. So if we look at the campuses in Stockholm, we have two campuses and also in Gothenburg, in Örebro and in Uppsala and now also in Malmö. That will be really, really great. And we also have some exams results when it comes to the PISA and we also very proud that the independent schools perform very well when it comes to the results of PISA and it's also been announced the report around that. So the overall picture, good growth, good development and we also have invested in quality and that is also a stable platform to continue to develop Academedia into the future. And then if I hand over to Petter and he will go through the numbers.

Thank you, Marcus. And good morning, everyone. As the new CFO to the company, I'm so honored to present my first quarterly report. And I'm delighted to kick off with such a strong quarter. As Mark outlined earlier, we achieved a good growth of 10%. with contributions from the acquisitions of Tula in Finland and Windford College in Netherlands amounting to 3.6%. Additionally, our adjusted profit margin increased to 7.1% compared to last year's 6.6%, which means that we were reaching 327 million in upturns, up 50 million from last year. This increase in adjusted EBIT reflects the growth across all our segments. Most segments experience also improved profitability, except for upper secondary, where the revision of school vouchers still isn't sufficient to compensate for higher costs. Moreover, this increased profit has translated into a correspondingly higher free cash flow. Now, turn to page four, please. The improved adjusted EBIT are, as I mentioned, evident across all segments, as you see in the picture. Apart from the better compensation through annual increases in school vouchers, which now adequately account for inflation, the positive change is most notable in the preschool and international segments, where in addition to better school voucher compensation, the acquisitions also contributed an additional 8 million. As we have mentioned in previous quarters, the increase in group overhead costs is a natural outcome of our growth. So some of our staff functions are adding extra resources to coordinate our expanding operations. Move to page five, please. Our rolling 12 month net sales have now reached 16.7 billion. Adjusted EBIT has climbed to 975 million, while we maintain a stable margin. Once again, we observe a very positive trend in free cash flow development. Now let's look at the quarter's development within each segment, and we start with preschool and international segment on page eight. The number of children increased by an impressive 13.2%. with growth witness across all countries except Sweden, where five preschools were closed in the past 12 months, affecting the year-over-year numbers. Our growth was primarily driven by the acquisitions of Winford in the Netherlands and Tula in Finland, along with new preschool openings in Germany. The international operations account now for 27% of the group's total sales this quarter and 30% performance. Net sales increased by 15.8% compared to last year with organic growth at 6% and acquisitions contributing 10.9%. Adjusted EBIT and margin improved compared to the previous year. This year's margin reached 6.7% up from last year's 5.5% and the operating profit was 108 million compared to last year's 76%. These improvements are attributed to better compensation for inflation costs through annual school voucher increases, reduced energy costs and contributions from acquisitions. The item affecting comparability in this year is the cost of acquisition for Tula. Moving on to compulsory school on page nine. We noted 2.2% increase in student numbers. Net sales rose by 8.3%. driven by increased number of students, the positive impact of the annual school voucher revision in January of 5.5%, and higher government graphs. The school voucher revision was in line with our previous estimate in Q2. Adjusted EBIT and margin improved compared to the previous year. This year's margin reached 7.1%, up from last year's 6.8%, and the operating profit was 78 million compared to last year's 69. These improvements attributed to better compensation through the school voucher revision, increased capacity utilization and decreased energy cost. Now turning to upper secondary school on page 10. We there observed 2.8% increase in student numbers. The sales grow of 6.5% is driven by more students as well as the annual school voucher revision of 3.8%. Although it's worth noting that this revision hasn't been sufficient to offset inflation cost increases. Consequently, the adjusted margin was somewhat below last year's 8.4%. Despite improved EBIT in absolute numbers due to higher capacity utilization and lower energy costs. Moving to adult education on page 11. We see a 6.7% increase in sales. driven by a higher number of students in higher vocational education and the acquisitions of Bergs. In the municipality business, our implemented capacity adjustments and cost-cutting measures from last year continue to yield positive effects. Adjusted EBIT increased to 43 million from previous year 33, with a margin of 9.7% compared to 8% last year. We anticipate the full year EBIT margin within the lower range of 9 to 11%, given the seasonally weaker fourth quarter. Continue to page 13, free cash flow and investments. Free cash flow for the quarter was 200 million higher than last year, attributed to higher profit and a more favorable net working capital development. Maintaining CapEx as a percentage of sales. has likely declined to 1.6%. The significant increase in other expansion context is associated with acquisitions of Winford and Tula. Proceeding to page 14, the financial position. Next step excluding IFRS 16 increased by 1.5 billion compared to last year with the leverage ratio including IFRS 16 at one. well below the financial target of less than three. Including property-related lease liabilities, net debt was higher due to growth, the acquisition of Tula, and the share redemption program. And finally, on page 15, our financial performance against targets. Our organic growth, including small bolt-on acquisitions, stands at 7.4%. exceeding our financial target of 5-7% growth. Our adjusted debit margin of 6.1% falls below the target range of 7-8%, but in the quarter we delivered 7.1% worth of notice. Our leverage ratio of 1 remains comfortably below the required threshold of 3. And with these words, we end this presentation and open up for questions.

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