eEducation Albert AB (publ)

Hello and welcome to today's Finwire presentation with Albert. After the presentation, there will be a question and answer session. So if you have any questions, you can submit them in English using the form on the right. With that said, I'll hand the floor to you, CEO Fredrik Bengtsson and CFO Erik Bergelin. Please go ahead.

Good morning and thank you for joining. I am Fredrik Bengtsson, CEO of Albert, and with me today is our CFO Erik Bergelin. We will take you through Albert's report for the second quarter and first half of 2026. After the presentation, we will open up for questions. So moving on. Let me start with the number that matters the most. EBITDA from continuing operations improved to minus 1.6 million krona from minus 6.6 million a year ago. That is a 5 million krona improvement. And it happened in the half of the year where we deliberately invest the most. Group EBITDA was positive at 2.3 million. This is supported by a one-off gain from the Holy Owly deconsolidation. The structural story is in continuing operations, and that story is 5 million krona better than last year. Operating cash flow from the first half was 8.1 million krona. Last year, the same figure was negative. We hold 49 million krona in cash. We have zero bank debt. In February, we said 2026 would deliver a positive EBITDA and a positive cash flow for a full year with quarterly variation and a front loaded investment profile. We followed that plan. But the numbers were only half of this quarter. The other half was directions. In June, we announced three things. First, mathematics is now at the heart of our strategy. We're launching a new standalone AI venture. And we have initiated a strategic review of Swedish film. And I will come back to each of them. Moving on Thank you. So first, the top line. The drivers are the same as in Q1, and I will explain them in the same way. Net revenue for continuing operations was 35 million krona, down 4% year on year. ARR was 125.6 million, down 10%. This is the trailing effect of two deliberate choices from the second half of 2025. We scaled back customer acquisition during the management transition, and we actively discontinued revenue that did not carry its own profitability, so no vanity numbers. In a subscription model, these decisions show up with delay. That is the mechanic. It's well understood, and it's exactly what we said would happen. The more forward indicator is invoiced sales. For continuing operations, invoiced sales were down 3% in the quarter and down 2% for the first half, broadly in line with prior year. This is an early indicator of stabilization. One note on reading the quarters. Our B2B invoicing allows larger contract negotiations and looking quarter by quarter, these can land on either side of the quarter boundary. Here in this quarter, B2B brands more or less balanced each other. Let me explain why the first half looks the way it does on the cost side. Our revenue and costs are unevenly distributed across the year. The first half is when we invest ahead of seasonal cycle. And this year, we are investing with better data than ever. In Albert Junior, the unit economics from the Finland relaunch and from our campaigns are favorable. Conversion holds. Payback period holds. So we're doing what any disciplined operators probably should do. We are accelerating marketing investments where the unit economics are favorable, not everywhere, not for volume, but where the return is proven cohort by cohort. That spending sits in the first half numbers. The revenue effect follows in the coming quarters. That is the business model and it's working as designed. On costs overall, same revenue pressure, 5 million better result. That is a smaller and more efficient cost base doing its job. Erik will take you through the details of that. Moving on to the next slide. Thank you. In June, we made explicit what has been building for a year. Mathematics is at the heart of our strategy. Why mathematics? Because it is where we have our roots, our data, our proof, and our brands. 15 years of learning data, 10 million learners, independently verified efficacy, And because mathematics is a challenge that governments and school systems are investing more in, not less. Falling math results are a political priority in every one of our markets. Sharpened focus also means higher demand internally. Each business within the group must be independent, profitable, fewer subjects, fewer geographies, higher demands. And that logic also guided two decisions this year. First being Holy Owly, our French language learning subsidiary, entered judicial liquidation in May. It didn't carry its own profitability and languages are not our core. and Swedish Film, and let me be precise here. Swedish Film is a profitable cash generating business. It has served and it still serves the group well, but it's not mathematics. We have initiated a strategic review to examine the alternatives, including a potential divestments with the aim of unlocking shareholder value and concentrating our investments where the growth potential is the greatest. There is no certainty that the review will result in a transaction. What remains is a group that is simple to understand. Maths at home, maths in school and a new AI powered venture that connects the two. Let me move on to the brand progress and give you some operational proof point from the quarter. Albert Junior relaunched in Finland. The launch was deliberately narrow. Paid acquisition in selected channels, weekly cohort tracking, and we scale spend only as long as the unit economics hold. Early cohorts are strong. Finland is now the template for how we reenter markets. That means disciplined, measured, and profitable from the start. Samdag signed four framework agreements with Welsh local authorities ahead of the Welsh language launch in September. I want to pause on that. These agreements validate two things at once. The commercial repositioning towards larger institutional accounts and our proof point, because strong engagement and clear evidence is what opens these doors. Sumdog remains, to our knowledge, the only math fluency platform with independently verified efficacy. In a market moving towards evidence-based procurement, that is not a marketing line, it's a structural advantage. These larger agreements do not yet offset the ARR decline. Framework agreements are opt-in and endorsed by local authorities, but also very workload intense. institutional sales cycles are long and revenue is recognized over a contract term. We expect the effect to become visible during next year. So this is a grind and I'd rather tell you that honestly than to sell you hope of a hockey stick. Filmoskola is the school and district brand of Swedish film, and they deliver another stable, profitable quarter and continues to contribute to group cash flow while the strategic review runs. Move on, please. Thank you. Now, let me lift perspective because the sector context matters for how we value the opportunity of what we're building. The global market for mathematics learning is estimated at around 39 billion dollars in 2025, projected to reach around 68 billion by 2033. The largest segment is ages 7 to 15, and that's precisely our segment. Two forces are reshaping this market, and both favor us. First, evidence. The UK procurement is shifting towards proven outcomes and having proof that your product works is becoming a condition for the conversations. We are, to the best of our knowledge, the only one in our category who have it. Secondly, quality. In Sweden, the screen time debate is raising the bar for what digital learning must deliver. And that bar filters out engagement-only entertainment products. It does not filter out products with verified learning impact. And then there is AI. And I know that is a swing buzzword and I can relate to that. So let me tell you how we think about it. AI has collapsed the cost of building learning content. That means that the generic layer, the app itself, is no longer a mode for anyone. What AI cannot replicate is what sits underneath. 15 years of learning data from more than 10 million learners. independently verified efficacy. Curriculum alignment built with pedagogical experts. And engagement that removed the scare of learning maths, makes it fun, makes children want to engage without always knowing that they are step by step practicing, learning and mastering mathematics. And of course, the trust of families and schools into core markets. Those are our moats. AI does not erode them. AI makes them more valuable because they are exactly what the next generation product needs to be built on.

Next slide please.