AcadeMedia’s interim report July – September 2021

First quarter (July – September 2021)

• Net sales increased by 10.2 percent and amounted to SEK 2,911 million (2,641). Organic growth, including bolt-on acquisitions, was 6.8 percent.
• Operating profit (EBIT) amounted to SEK 233 million (221).
• Adjusted operating profit, adjusted for items affecting comparability and effects of IFRS 16, amounted to SEK 194 million (151). Items affecting comparability amounted to SEK -30 million (10) relating to a fire in a compulsory school.
• Net profit for the period amounted to SEK 100 million (91).
• Earnings per share was SEK 0.94 (0.87) after dilution. Adjusted for IFRS 16, earnings per share was SEK 1.15 (1.11) after dilution.
• The average number of children and students in preschool, compulsory school, and upper secondary school during the first quarter was 91,431 (85,642), representing an increase of 6.8 percent.

The complete report will be made available at
https://academedia.se/en/investors/reports-and-presentations/

Comments from CEO Marcus Strömberg
In 2021/22 we welcome more children, students and participants than ever before, demand for AcadeMedia's educations have never been greater. Eleven new units opened during the first quarter, three upper secondary schools in Sweden and eight preschools in Germany. The number of children and students increased by 6.8 percent. Demand for adult education remains high, with our higher vocational education (HVE) programmes seeing a 25 percent increase in the number of participants.

Strong growth in higher vocational education

AcadeMedia's adult education segment continues to grow, in terms of both sales and earnings. The strongest growth was in AcadeMedia's HVE programmes, which at autumn start welcomed 10,200 students, 25 percent more participants than in the previous year. Existing operations as well as the acquisition of KYH contributed to the growth. HVE is a form of education that benefits both the individual and society as the programmes reflect the needs of the labour market, with around 90 per cent of graduates finding jobs after graduation.

Record number of students start at our upper secondary schools

We are pleased to highlight that almost 16,000 year one students started at one of AcadeMedia's upper secondary schools at the beginning of the autumn term. That's more than ever before. Many of those students entered one of our upper secondary schools with vocational focus, on programmes that train for jobs – many in sectors facing a labour shortage.

Three new upper secondary schools also opened their doors: Klara Teoretiska Gymnasium in Västerås, Designgymnasiet Malmö, and Praktiska Gymnasiet in Norrköping. 

Continued strategic development of Compulsory School Segment

A year ago, we renamed 28 units in our Compulsory School Segment. The aim was to clarify the educational offering to guardians and to enable schools with a common educational concept and similar working methods to work and develop together. 

Since the name change, the cooperation between the schools with the same profile has worked well. The profiles have served as a solid base for joint development and enhanced cooperation which has benefited both staff and students. It has strengthened our conviction that this is the right strategy, and against that background we launched a new compulsory school profile, Innovitaskolan, shortly after the end of the quarter.

Innovitaskolan combine traditional teaching with modern tools and methods. 41 units, all former Pysslingenskolor, are part of Innovitaskolan. We are confident that Innovitaskolan make a good fit with our other four educational profiles, Noblaskolan, Montessori Mondial, Pops Academy, and Vittra.

Rapid growth in our operations in Germany

In Germany, growth has returned to the expansionary level that was curbed by the pandemic. During the quarter, we opened eight new preschools with a total of 415 children. Currently, a total of 4,400 children attend one of our German preschools, an increase of 23 percent from last year. In the coming three quarters, we plan to open seven more units, which will provide an additional 330 places.

Ten years of transparent reporting on quality

On 21 October, AcadeMedia published its annual quality report for the tenth consecutive year. To report quality results so consistently and transparently using the same model is unique in the world of schools in Sweden.

This reporting has provided a basis for analysis and improvements in the organisation, where we now make ongoing grade forecasts and conduct major training initiatives in grades and assessment for employees. Please read more about our quality report on page 11 in this interim report.

We would like to see the introduction of independent knowledge tests and digital centrally marked national tests in Sweden. We believe that this is an important key to improve and develop the Swedish school system.

The political debate intensifies

The 2022 elections in Sweden are now less than a year away. Various political parties launch different proposals that affect both schools in general and the conditions for independent schools. 

The debate is centring on the need to improve the results of Swedish schools, and the need of schools to become more equal – in other words, that every student should have the same opportunities to achieve their goals. Most people agree that these are important issues; the disagreement is on how best to resolve them, and what the problems are due to.

Regulatory changes in the school sector take time, which is a good thing. In addition, no proposals currently have political majority. Schools need long-term solutions where responsible politicians and school providers (whether independent or municipal) can develop the system in the right direction. The Swedish education system is crucial if Sweden is to remain a competitive country. That is why politicians, researchers, and representatives of the sector need to agree on the rules of the game. Independent schools constitute a large and important part of Swedish education.

Marcus Strömberg
President and CEO
AcadeMedia AB (publ)

Presentation of the report
To participate in the conference call, and thereby be able to ask questions, call one of the following numbers ten minutes before the start of the call:

SE: +46 8 5055 8374
UK: +44 33 3300 9030
US: +1 646 7224 903

You can follow the presentation and the conference on the following page: https://tv.streamfabriken.com/academedia-q1-2021-2022

The presentation material will be available before the conference begins on AcadeMedia web via:
https://academedia.se/en/investors/reports-and-presentations/ It will also be possible to access the recorded version of the webcast after it is finished on this page.

For more information, please contact:
Marcus Strömberg, CEO
Telephone: +46 8 794 4200
E-mail: marcus.stromberg@academedia.se

Katarina Wilson, CFO
Telephone: +46-8 794 42 91
E-mail: katarina.wilson@academedia.se

About AcadeMedia
AcadeMedia creates opportunities for people to develop. The 18,100 employees at our 680 preschools, compulsory schools, upper secondary schools and adult education centres share a common focus on quality and development. Our 188,000 children and students are provided with a high-quality education, giving them the best conditions to attain both learning objectives and their full potential as individuals. AcadeMedia is Northern Europe ́s largest education company, with locations/facilities/presence in Sweden, Norway and Germany. Our size gives us the capacity to be a robust, long term partner to the communities we serve. More information about AcadeMedia is available on www.academedia.se.

This information is information that AcadeMedia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CEST 29 October 2021.