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Good morning everybody and welcome to this report of our Q2 result in Academedia. Today, of course, as you all have heard, Sweden wakes up one more day with sadness and sorrow. What wasn't allowed to happen has happened. What we sometimes thought about and prepared for and hope that we didn't have to use has now happened. And even today we mourn and we think of all the affected of the terrible things that has happened in Örebro. Academedia has an extensive operation in Örebro with both secondary schools, primary schools and adult activities. And what we know so far, nobody of our teachers and students has been affected. But security has always been important for Academedia and we had our first training for all our schools in 2016 and all our school has prepared for this, but this will of course affect the schools in Sweden the coming time and year. But today we also report the quarter two result of Academedia and even if this is sad times, we are very proud of what we have achieved in Academedia the time of quarter one and quarter two. All our segments is reporting an improvement. You have a very strong organic growth of 6.6% and the overall company growing more than 13%. And we are also very happy that we see that the Swedish schools that still are very important for Academedia report quite good result in the international service. and it's called TIMSS and we could say that if we look at the Swedish school, we are really one of the best in the world and we think that the independent schools has been very important when it comes to this development. Academedia has also worked very hard to improve quality and we work a lot with to improve the reading results and to crack the code of reading. And we have a lot of activities and we see positive development. And we have also launched a fantastic books that is called ABC books that helps children to read. And in fact, I've got all the books on my desk in my office and I can I can really recommend them. And we see also very positive development when it comes to the international part of Academedia is growing. It has increased the profitability and we are very proud that we are a part of really improving Germany with childcare. And it was an article in Financial Times recently talking about this. And we can really say that it's truly important for the German government to improve the number of childcare places. And Academia, we will soon have our preschool 100 in Germany. That is very positive for us. The school voucher is, of course, important. We see positive development in Germany, but when we look at the numbers in Sweden, we think that it's stable. It's compensated for the inflation and we have the most of the inflation behind us, even if the numbers that was reported in Sweden today was a little bit higher than expected. We think that the school voucher will reflect the inflation and give us a stable foundation when it comes to develop the company. And also when we look at the adult education, we have worked with the vocational training for many many years and we now can see the results and the development is very strong in the adult education and we see that the unemployment rate in Sweden is increasing a little bit and that is why more people go to vocational training programs when it comes to the adult education. And then if we just comment also a little bit more on the quality development of the company. This has really been key for Academieri for many, many years. And we just reported our 13th quality report. But if we don't look at just our internal quality surveys, if we look at what does the authority say, what does the school inspection say about what we do, and we can say that Academiedia performed really, really good. If we compare with the public schools, with the other independent schools, we have really top quality when it comes to the surveys and investigations that the school inspection is doing. And then also if we look at the grades, And that has also been key because we have a little different system if you compare with other European countries in Sweden. So we really had top line results when it comes to giving the right degrees. And this has been something that has been discussed in media a lot in Sweden. And if we look and compare with the other with the municipality schools and the natural average, Academedia is really now performing really, really well. And then when we look at the adult education and we see what we do when it comes to vocational programs, we also have very good results if we compare with the natural average. We train people to the right jobs and they get jobs. And when it comes to times with high unemployment rate, it's really important to have the right education and to deliver good results and good payback to the society. So the overall picture when it comes to quality in Academedia, we perform very well and we perform very well when we compare with the natural average in Sweden. Then if we look at the financial development in the company, it's of course important to talk about the future. But it's also important to remind about the history. And Academia Dia has a long, long time of good financial performance. And this year, I've been the CEO for 20 years. I'm really proud to work with all these very good people that together with me has developed Academia Dia with 20% growth over the years. And that is, I must say, one of the best achievements that you have seen maybe in an education company. And we are now the European leading education company, and we have also, if you go to the next picture, Hanna, increased the the number of revenue that is international so we have made the company diversified we have made the company quality strong financial strong and now we have the position as a european leading education company and we have a true plan to continue this development and we have a strong growth plan in germany we are looking at other countries so the foundation of academia is stronger than ever

Thank you Marcus. Good morning everyone. It's exciting to take over and reflect upon that we have a long history of good financial strength and with good quality as Marcus described and now we can add yet another good quarter. If we move on to thank you, as Marcus outlined earlier, we achieved a good growth of 13.4% with contributions from the acquisitions of Tula in Finland amounting to 6.9%. Additionally, our adjusted profit margin increased to 5.6%, which is to be compared to last year's 4.6%. reaching 280 million in absolute terms, up from 204 million. And finally, this increased profit has translated into correspondingly higher free cash flow. Now, turn to the next page, please. The improved adjusted EBIT are evident across all segments. The positive change is most notable in the preschool and international segment. An increase of 37 million is driven by overall better voucher compensation, but also retroactive revenues, as well as contribution from the acquisitions of Tuula. In the compulsory and upper secondary segment, we improved the results by good cost control and increased retroactive revenues. Adult education continues to report strong results, driven by high unemployment and better utilization rates. As we have mentioned in previous quarters, the increase in group overhead costs is a natural outcome of our growth, and the increase in this quarter of 5 million is a consequence of that. Next page, please. We move on to page 13. So now let's look at the quarter's developments within each segment. And then we start with the preschool and the international segment. The number of children increased by an impressive 29.4%, with growth witnessed across all countries except Sweden. And there we had six units that were closed last year. Our growth was primarily driven by the acquisitions of Tula in Finland, along with the new preschool openings in Germany. And the international operations now account for 27% of the growth total sales this quarter. Net sales increased by 28% compared to last year with organic growth at 7%. Just a bit and margin increased compared to the previous year. And this year's margin 3.7% was up from last year's 2.2%. The operating profit increased to 78 million compared to last year's 31. The higher margin was an effect of high retroactive revenue, temporarily lower cost in Norway and contribution from the acquisition of Tula. The 2025 preliminary school voucher increase in Sweden is estimated to be 2.5% and in Norway 4.5%, which now is reflecting a lower inflation than previous year. Moving on to compulsory school on the next page, we note 4.8% increase in student numbers. Net sales rose by 9.3% driven by increased number of students and the positive impact of the annual school voucher revision. Adjusted EBIT and margin increased compared to the previous year. This year's margin reached 6.5% up from last year's 6% and the operating profit was 77 million compared to last year's 65. The somewhat improved result was a consequence of acquisition as well as retroactive revenues. The 2025 preliminary school voucher increase in Sweden is estimated to be just over 3%. Now turning to upper secondary school, we observe a 0.6% increase in student numbers. The sales growth of 5.1% was driven by more students as well as the annual voucher provision. The adjusted margin increased this year 7.1% compared to last year's 6.2%. And this was because of good cost control in the quarter and increased retroactive revenues. 2025 preliminary school voucher increase in Sweden is estimated to be 2.5%. Moving to adult education on page 16, there is a 4% increase in sales, which is attributed to a high number of students in higher vocational education and municipal adult education. Adjusted EBIT increased to 60 million from previous years, 46, with a margin of 12.2% compared to 9.7% last year. In January 2025, the Swedish Agency for Higher Vocational Education announced that Academedia had been awarded 4,700 new educational places. And this means that we defend our position as market leader with a market share of around 20%. Let's continue to free cash flow and investments. Free cash flow for the last 12 months was closed the last year in absolute terms. The free cash flow as percentage of MBTA is as expected around 70%. Maintenance capex as a percentage of sales has slightly declined from 1.7 to 1.6%. Please continue. And the financial position, the net debt excluding IFRS 16 increased by 35 million compared to last year, the leverage ratio excluding the IFRS 16 as 0.6, which is well below the financial target of less than three. Including property related lease liabilities, net debt is 1.5 billion higher due to the growth, the acquisitions of Tola and Winford and indexation of rents. And finally, we move on to performance against our targets. Our organic growth, including small Bolton acquisitions, stands at 6.6%, meeting our financial target of 5% to 7% growth. Our adjusted debit margin of 6.4% falls below the target range of 7.8% to 8%. The leverage rate of 0.6% remains comfortably below the required threshold of 3%. And with these words, I end the presentation and we open up for questions.

If you wish to ask a question, please dial pound key five on your telephone keypad to enter the queue. If you wish to withdraw your question, please dial pound key six on your telephone keypad. The next question comes from Johan Lundqvist Sundin from Carnegie. Please go ahead.

Good morning, Marcus and Petter, and congratulations to you. Strong result. First question from my side is just to better understand the margin pickup. And Petter, you referred to that margins benefited from some retroactive revenue. in this quarter and normally you highlight or you you quantify the amount you haven't done this this time can you give some ballpark that's how much of a contribution that was in the various segments

But we have decided that we believe it doesn't make relevance to quantify it quarter by quarter because it's a continuous flow of retroactive compensations. And there is somewhat higher than it has been in the previous years, last year's quarter as a consequence of that inflation, high inflation we have had. And as a consequence of the high inflation we have had, we also have a higher degree of municipalities that has had budget that they haven't been able to keep and thereby they have retroactively compensated by the end of the year as a consequence of that they concluded that they can't keep their budgets. So we will continue to have this flow of continuous compensation retroactively. We consider it as part of our total revenue. It is slightly higher this quarter than what we have seen for some time. And with falling inflation, it probably will go down. It will be some kind of pent-up effect now.

Because if we look back a few years, we had some municipalities that didn't do the school voucher in the correct way. And we could get a high amount from one municipality maybe for five, six years back. And this is behind us, as Petter mentioned also. Now we see more municipalities correcting their budget as a part of their usual work. so it's it's a lot of payment from different municipalities so this is not money coming from five years ago or something like that it's more like adapting the the budget year and we will most probably see the same yeah and i the coming years since they more self-correct themselves by the end of the year they are better self-correcting but if you look at if you look at the numbers for 2025 you know now the inflation is down so maybe the budget is more correct this year for the for the municipality it has been been difficult for them for 2024 and 2023 but i think i don't i think it's very positive that the municipality correct without we taking them to court because that is very positive that they understand that they they have to treat the the students the same

Yeah, I understand your reasoning. I think it would be good if we have some kind of guidance or if there's any amount that normally ends up in Q3, Q4 that now happened in Q2. So we don't extrapolate this higher margin. It should be sustainable for you.

Yeah, it's also difficult.

I think you wrote about the preschool business that there was some compensation that normally takes place in Q3 and Q4 and that now happened in Q2 instead. That's right.

That's what we wrote.

That was related to Germany, correct? Yeah.

So if we have the right compensation, we'll have good margins. So the problem, if you look at the years behind, we have a delay. We have a delay in Germany. We are now on the right track. They are compensating us in the more correct way. And as far as we get good, right compensation, we have a very professional business and adapt our cost in a good way. And we see now a positive. Why we see a positive upturn is why we are better compensated. And if you look in Germany, sometimes you get them in another quarter, and that is what happened in this quarter. But the underlying development in Germany is positive.

Yeah, I understand that and I see that in numbers as well. If we stop on the kind of the finish acquisition and just to get the feeling for the seasonal pattern within the year, we had some headwinds in Q1. Now it seems as there wasn't that much of a headwind. How is the money profile looking throughout the year for Tuara?

We expect similar margin for Q2, Q3 and Q4 with a slightly improved margin quarter by quarter, depending on how well we succeed with our improvement program. But as we have said, we have an expected expectation for the first year that they should have a margin within three to 4% and currently They have started in the low range and they are improving. The weakest quarter has been behind us now in Q1, as you know.

Okay, so stable kind of level from here, basically. And then on vouchers, it seems as it would be best to compensate in 2025. Do you think even that there's some room for you regaining a bit on the margin side with regards to the lower kind of rent increases that is coming?

As we said, I mean, this year's school voucher will be just over 2.5%. And we will see exactly what it ends up with. And as you said, the rent increase in Sweden was a little bit, yeah, was 1.6%, basically. So, I mean, that looks good. The significant part of the cost base we have are the salaries. And as we all know, the salary vision is still unknown. But hopefully, I think we will expect and hope, given the inflation, that it will be something lower than last year. I think all in all, we hope that we will better compensate for this cost in the Swedish operations. But given the fact that it's very uncertain how the salary level will end up with, I don't think we expect any significant margin increase. And all in all, it highly depends on the outcome of the salary discussion.

But what we know is that the lease will increase by 1.6%.

Exactly. That's for sure.

That's what we know.

Makes sense. And a final question from my side. It's on the adult business, which showed a strong margin for a second quarter in a row here. And you have historically talked about this kind of corridor of 9% to 11%. That's where you should be. Do you still think that that corridor is relevant for this year? Or do you think you can overachieve this year? And how kind of sustainable should those money be given the kind of swings in the labor market, et cetera? Think about, say, 25, 26.

If you look back at long historic data, like 10 years or so in the adult segment, we have typically in average had the performance between nine and 11. And then there has been years that have been significantly lower, where the market has shifted and the unemployment rates has been lowered fast. And then we have had few times where we have had above 11%. And those are typical times where the unemployment rates are high and the utilization rate is as, has been good so i mean currently we are trading higher there are there is a potential that it could be higher in this situation uh but we don't expect anything significantly higher than nine to eleven percent for this year especially we don't expect it in the long term um I mean, this is a volatile business and we need to, I mean, we're very glad that it's been well now. We have expectations. That's the forecast for high unemployment rate for 2025. And that gives good possibilities for continuous good volumes and business there. But there will come times sooner or later where the unemployment rate will decline and then there will be changes.

if you compare with the competitors in the in the adult education we have the absolute strongest position if you compare with them and that's why we have the higher part of vocational training and we have a lot of different brands so we can meet a lot of different needs and also if you look at the online training that we really also have a very strong and good position at in the adult education will also give us competitive tests if you compare with competitors. So I think I think we are doing a really good job when it comes to adaptation.

Excellent. Those were my questions. I get back in line. Thanks a lot.

Thanks a lot.

As a reminder, if you wish to ask a question, please dial pound key five on your telephone keypad.

there are no more questions at this time so i hand the conference back to the speakers for any closing comments so thank you very much for your questions and listening to this presentation and we wish you all the best thank you very much bye-bye thank you