eEducation Albert AB (publ)

Hi and welcome to Albert's second quarter report 2025. With us to present we have CEO Fredrik Bengtsson and CFO Erik Berglin. If you have any questions for the company you can fill them in the form to the right and with that I give the word to you Fredrik.

Good morning and thank you for joining. With me today is our CFO Erik Berglin and together we will walk you through the Albert Group's second quarter and first six months. Today's agenda is the actions from the second quarter. Moving on to a brief review on our fundamental business, which is our brands, our customers, and the value Albert Group adds in this segment. Erik will then go through the financials from our report, and we will summarize what we're doing right now, and then we'll open up for questions. This has been my first quarter as CEO of Albert Group and a quarter of decisive action from both our board and from our management. I was brought into the group by the board in late April with a mandate to assess all aspects of the business, to propose an effective change towards profitable growth and to execute on this plan. And that is what we have done. In May, Erik Bergerlin was announced as our new CFO of Albert's group. I recruited Erik internally, which is a sign of the strength we have within our group. Recruiting Erik was the first shift towards a leaner organization with reinforced attention to financial control and efficiency. After a thorough review, we moved quickly to protect our path to profitability. We launched a 25 million krona annual cost savings program. We streamlined the organization from 103 to 75 people with most reductions affecting central functions, middle management, overlapping roles in product teams across the Swedish and UK operations. And we maintained our marketing and sales capacity to ensure the continued commercial focus in our core markets. This program was both planned, launched and executed in June. But the strategic review of our assets is ongoing with a sharp focus on our path to profitability and to profitable growth. We are now putting in place a more decentralized model with a minimal group overhead, where each business unit carries its own P&L responsibility. This structure is designed to bring our local brands closer to the core markets. supporting faster decision-making, improved customer focus, and increased operational agility. The effect is immediate. We have lowered our cost base, which already in Q3 will place Albert Group firmly on the path towards our communicated financial targets. Albert is not one brand or one product. It's a group with unique strengths. Albert is the number one Nordic business-to-consumer maths learning app for children and youth. Samdag is our UK school-focused business-to-business solution, which we have now expanded into Wales with a localized curricula. Swedish Film is a digital streaming service for schools with a high quality content. and Strawbees is hands-on STEM learning tool with a strong traction in US schools. The market for EdTech is not just growing, it's becoming ever more essential. And Albert Group has strong brands with leading positions in both the Nordic business to consumer markets and the UK business to business school markets. Education is under pressure everywhere. Families and schools are looking for affordable, engaging, and personalized learning solutions. Knowledge is the currency of the future, and our mission has never been more relevant. Albert Group is well positioned in this space with our proven products and loyal users. One thing that really stands out is the feedback from our users. Parents, teachers, and children are engaged and satisfied. We see a strong usage across our apps and testimonials continuously show us that what we deliver makes a difference. That is important because it shows that we don't need to reinvent the wheel. Our services are strong and our job now is to run them more efficiently and scale what works. I will now hand over to Erik for a financial update.

Thank you, Fredrik. I fully agree that the group consists of several very strong brands with good outlook. Our job is to ensure long-term profitability by tailoring the costume right while focusing on high yield ROI projects that fuels the growth of our brands. What I will go through now are some core KPIs that we follow closely on group and brand level. Net revenue, EBTA, EBTA margin, cash flow, and cash balance. Our net revenue for Q2 is 41.6 million SEK compared to 49.5 million SEK in 2024. The drop is more or less only from the challenging macro environments in the United States, impacting our US B2B sales business significantly. Because if we would have sold as much in US business to business as we did in 2024, our sales would have been 49.3 million SEK and basically the same as Q2 2024. We keep our momentum in our subscription business and see good signs of growth, where last year's investments in sales and marketing now show promising signs of increased revenue. Looking at EBTA. We continue our journey to be EBTA positive in 2025. Our EBTA for Q2 was minus 10.5 million SEK and highly impacted by both one of costs for the restructuring program and poor sales numbers from our US business to business. But if we deduct the one of restructuring cost of 5.3 million SEK, the adjusted EBTA is only minus 5.1 million SEK. And this then includes the poor B2B sales in the US in quarter two. With these facts in mind and full effect of the restructuring program in Q3 and onwards, we foresee a more positive EBITDA outlook. And then similarly with the EBITDA margin, we are heavily impacted by B2B US sales and restructuring costs ending on minus 25%. But removing the one of costs, We are at minus 12 with clear trend upwards. The EBTA margin will be closely watched now going forward to ensure we target a fair EBTA margin paired with a wanted growth percentage. Looking at our quarterly cash flow, we ended the period on minus 21.2 million SEK. This is not what we wanted, but some added costs due to the destruction program plus our B2B US business is performing low par. This is unfortunately where we ended up in. Our cash balance is therefore 34 million SEK end of June. As you all know, me and Fredrik and the rest of the organization are not taking the right but tough decisions to one, tailor each of our brands costume right to ensure that we flatten the cash balance curve. And two, focus on RF for some high yield ROI investment that ensure we grow our top line without adding unnecessary costs. So although challenging, we expect that reaching positive cash flow with our own funds is achievable. Thank you.