eEducation Albert AB (publ)

Hello and welcome to today's webcast with Albert, where CEO Jonas Mortensson, Co-CEO Ann-Louise Verén and CFO Katarina Strydervall will present the report for the first quarter of 2024. After the presentation there will be a Q&A, so if you have any questions you can send them in via the form to the right. And with that said I hand over the word to you guys.

Thank you Ludvig for that introduction and also a warm welcome from me to all of you who have tuned in this morning to our conference call. And as I said, I'm Jonas Mortensson, the CEO of Albert Group. And with me, I have Anne-Louise and Katarina, who you will meet later. But before getting started, I would just like to summarize quickly who we are. And Albert was founded back in 2015 as a mathematics app to be a home tutor for kids. But since then, we have grown into a leading Nordic edtech group where we have more than six different brands with multiple product brands sold in more than 10 markets. We are selling both to schools B2B and to consumers B2C, which gives us dual revenue streams, which both creates the predictability of B2B with the scalability of B2C. And looking at net sales and our financial performance, I'm happy that we're having the quarter delivered stable net sales, despite that this has been quite challenging for us this quarter, both due to the external macro conditions, but also internally since we're in the middle of a restructuring program that we announced last quarter. And that restructuring program was set and launched in order to improve profitability and speed up the path to positive EBITDA in 2025. And we're also well-funded. We have more than 86 million Swedish in their bank account, and that should take us to positive cash flow. And in today's presentation, we will start talking a little bit about Albert and our strategy, then we'll go into the Q1 results. And then we look forward before we end up with a Q&A session. So as Ludvig said, please send in the questions you have and we look forward to answer them. But now over to you and Louise to hear more about Albert.

Thank you, Jonas. And for those of you who have attended this, our conv calls before, this will be a bit of repetition, but as everyone working with learning, we know that repetition is of course key to learning. So therefore we think it's important to keep this section in. And when we talk about Albert and who we are, why we exist, we do think it makes sense to start with taking a step back and talking about the problem we are here trying to be part of the solution to. And I think as most of us know, Formal education today are facing challenges. We know that many kids struggle in school, especially in maths. We know that there is a lack of equal access to qualified teachers. And all of this are global problems that we as a society face together. We also know that not all kids can get the help that they need at home. Could be due to lack of knowledge or lack of time. And this, of course, together with other factors are making the school results decline. Again, it's a global issue and also that the socioeconomic inequalities are increasing. And this was unfortunately proven again in the latest results of the PISA study that was released just before Christmas last year. And this is the reason why Albert was founded and why we exist. And we work towards our vision that is to help every child reach their full potential through fun and personalized learning. And in a more practical way, this means that we are building a learning ecosystem targeting, as Jonas said, both the B2C and the B2B market. And this is because we, obviously the school and the home are the two most important arenas for learning for the kids. So that's why we want to tie them together. That's what we think is needed in order to achieve our vision. And this, we have been on this journey for quite a long time. Again, as Jonas mentioned, we started off focusing fully on the B2C, the parent side. We were a maths app. Our Albert Junior was our first product, focusing again on maths. We were present back then in very much focusing on Scandinavia, Poland, and the UK. But since 2022, we have been really accelerating this focus on building the ecosystem, and both by acquiring companies, but also our organic product development ecosystem. We have come to a place now where we are a group of companies where we have products covering a big range of subjects and also with presence in many different markets. And as you can see, we now target again, both the B2B and the B2C side, which we do think is key, not only to achieve our vision, but also because of these giving the company a healthy financial profile. Because these two revenue streams, the B2B and the B2C, they are quite different from each other. The B2C is a quite typical consumer sauce revenue, meaning that it's scalable. You can scale quite fast, but it's capital intense. You need to invest in marketing. The contract lengths are typically a bit shorter compared to the B2B, meaning slightly higher churn. But on the other hand, you have a higher revenue per user. The B2B on the other side, it's not as scalable. It doesn't move as fast. But again, the contract lengths are longer, making the revenue streams more predictable. And we can also see that given the macroeconomic climate we are in and have been for a year or so back, that has affected the B2C side a bit more than the B2B, which is one of the reasons why we're now focusing more on the B2B. So... Today we have a broad portfolio of learning products, different kinds. We have the digital apps, which is, I would say the main part of the portfolio, but we also offer physical books, a physical hands-on construction product that can be used for STEM and robotics, and also films, which is a very appreciated way of learning. We are operating under eight strong product brands. We have global presence today. We have three home markets. It's Sweden, France, and the UK, but we are present in many more European countries and in the US. And we know that we actually make a difference. Our learning impact is proven. In a research study conducted by Sundog, we could see that 20% of the knowledge gap between the socioeconomic strong and the socioeconomic weak students was closed by using Sundog for one year And an impact study we did in Albert last summer, we could see that 96% of the parents to Albert Junior users, they experienced that their kids' knowledge was developed by using the app. So we are really here to be part of the solution to a very alarming global problem that we're facing as a society. And we have great products that really can make an impact. And we are on the journey to become a leading European edtech player. So with that said, I will leave it to you, Jonas, to start talking about the Q1 results.