eEducation Albert AB (publ)

Hello and welcome to today's webcast with Albert Group, where CFO Fredrik Bengtsson and CFO Katarina Strival will present a report for the first quarter of 2025. After the presentation, there will be a Q&A, so if you're calling in and have a question, you can submit them in the form to the right. And with that said, I hand over the word to you guys.

Thank you. Thank you. And welcome to Albert Group's interim report for the first quarter of 2025. I am Fredrik Bengtsson, and I'm joined today with our CFO, Katarina Strival. I joined the group on April 22nd, so I've been here just a little over three weeks. Even though I'm new at the helm of Albert, I'm not new to this industry. Previously, I was the CEO of Enne and also a board member at Swedish EdTech Industry. I'm very happy to be here. Albert is a company with a meaningful mission, a strong consumer attraction, and talented people. What we do here matters. Our mission matters. I will... start off today by briefly presenting the Albert Group and our why. Then we'll continue with the Q1 report results for 2025, a brief look forward, and then the Q&A. Schools today face significant challenges. Shortage of teachers, growing demand and shrinking resources is a hard equation to solve. The teachers face diverse learning needs in their classroom. The demand for individualized instruction is growing. Traditional methods like group instruction alone are no longer enough. The one size fits all approach simply does not work for every student. Classrooms are overcrowded, material is outdated, recruiting and retaining qualified teachers, especially in STEM subjects, is a growing challenge. Today in Sweden, three out of 10 primary school teachers lack the formal qualification required to teach. Education is a key foundation for both individual growth and a thriving society. Still, millions of people lack basic skills and many never realize their full potential. Learners struggle with lack of motivation and engagement. Standardized learning does not reach all the learners at their individual level and need. Many learners fall behind in core subjects, in specific mathematics and literacy is an area of concern. In Sweden, one in every five students finishes ninth grade without passing grades, leading to a higher risk of unemployment and exclusion. Many parents struggle to help with the homework due to unfamiliar curricula or to language difficulties. Parents often lack a clear insight into the child's academic levels, progress or performance. Time and social demographic factors vary widely, and parental support is not always an option. When education fails, it's not about lower grades. It's about missed opportunities and a growing social gap. The need is real, and here Albert Group has an important role to play. At Albert, we make learning more engaging, more personalized, and more accessible, both inside and outside the classroom. We equip the teachers with powerful digital tools. We support parents on their children's learning journey. Simply put, we make learning something that every child wants to do. We have a portfolio of brands in learning. Albert Junior is a business to consumer training app that's a leader in the Nordics. and has just entered the Romanian and Czech markets. Sumdog is a fluency practice in mathematics for schools across the UK. Here we have a market leader in Scotland that has now also launched a localized version in Wales. Strawbees is a combination of creative online and hands-on learning of STEM subjects, primarily focused at the American market. We know that what we do works. It improves learning outcomes. It brings a positive change. Results like these inspire us to continue improving our services, to help new generations of learner and to shape a better future. Now over to Katarina who will take us through the Q1 numbers.

The first quarter has been characterized by both ups and downs. The uncertainty that has persisted throughout this quarter due to the US market and macroeconomic condition has impacted sales in some areas. Sales are lower compared to last year and amounted to 42 million SEK, while this year sales stands at 39 million SEK. EBITDA is minus seven and shows an improvement compared to last year's EBITDA. This is mainly due to lower costs linked to sales and lower personal costs resulting from the restructuring program that was carried out in Q1 last year. Activation of proprietary products and assets has increased slightly compared to last year, which has a positive impact on the earnings. Invoice sales have decreased by 4% in the first quarter, and net sales have decreased by 7%. Sales in B2C are in line with last year's sales, while B2B has not met the target during the quarter, mainly due to this uncertainty in the US market. This situation has caused customers' purchasing decisions to be delayed, leading them to be increasingly cautious during this quarter. When we look at the distribution of various target groups and segments, we find that the mix remains consistent. We have a slightly larger share of the B2B business compared to B2C, and we continue to see that the distribution follows seasonal patterns. The Swedish markets have had a strong quarter. EBITDA is 6 million SEK better than last year's reported result and 3 million better than the adjusted last year's results, which included 2.8 million in restructuring cost. EBITDA is also positively impacted then by the lower sales cost and the lower personal cost. And in the graph here, you can see last year's adjusted result. Cash flow is positive in Q1, amounting to 11 million SEK. This is an improvement compared to last year, primarily driven by the better operational result this quarter. Cash flow is 4 million SEK better compared to the same quarter last year, and the plan remains to reach positive cash flow in 2026. And now over to Fredrik.