Update relating to COVID-19

The instruction from the government remains that compulsory schools in Sweden are to stay open, but that schools have the possibility to partially or fully transition to distance learning for special reasons. Internationella Engelska Skolan (IES) welcomes this new instruction and intends to keep its compulsory schools open to the greatest extent possible.

All IES compulsory schools are currently open, including after-school care and lunch service. Due to a severely strained staffing situation, some schools have transitioned to conducting some parts of teaching using remote and distance learning. The schools affected and the scope varies according to the staffing situation. IES, in active consultation with the municipalities, will also offer to receive children in need of care from other schools as far as this is practically possible.

IES also owns seven bilingual schools in Spain. Since mid-March, the Spanish authorities have implemented a state of emergency with a lockdown and have closed all of the country’s schools. According to the current timetable, this decision will apply until at least 11 April. Students in Spain are now being taught completely through distance learning. IES is continuing to charge student fees for distance learning as our costs for this remain, which is in line with the recommendations of the sector organisation. No charges are levied for food, transport and other related activities. Corresponding costs have also been limited. An extension of the school closures has led to personnel groups who are not teachers or needed for distance teaching being temporarily laid off. The government is making lay-off payments. A long-term closure in Spain will have a negative impact on earnings in Spain for the current year.

Anna Sörelius Nordenborg, CEO of Internationella Engelska Skolan, comments: “The schools have a key role in ensuring that society continues to function in times of crisis, so that critical workers can continue to perform their duties. The schools also fulfil a social function as places of community and security, where children and young people can share their concerns with school staff members.

“I want to extend a warm thank you to all of our employees who are doing a fantastic job every day in educating and supporting our students and helping each other during this challenging and critical time.”

For more information for the media, please contact:

Linda Norberg, Press Officer, IES
Telephone: +46 (0)702 260 904
E-mail: linda.norberg@engelska.se

For more information for investors, please contact:

Emma Rheborg, Head of Communication and IR, IES
Telephone: +46 (0)768 511 540
E-mail: emma.rheborg@engelska.se

The information was submitted for publication, through the agency of the above contact, on 27 March 2020 at 13:00 CET.

About Internationella Engelska Skolan

Internationella Engelska Skolan, IES, is one of the leading free school operators in Sweden with some 26,800 students at 37 schools. IES also owns seven bilingual schools in Spain with approximately 4,800 students.

IES Sweden conducts school operations from “förskoleklass” (grade F) up to the third and final year of upper secondary school (grade 12). Its main focus is grades 4-9, what is often called “middle school.” Within the compulsory school system in Sweden, IES is the leading independent operator, with 17 of the 20 largest free schools. The academic results of IES schools on the national tests in grade 9 are far above average in Sweden.

Internationella Engelska Skolan was founded in 1993 and is in its 27th year of operation. Throughout this period, its schools have been defined by the three core convictions of its founder, Mrs. Barbara Bergström:

• A safe and orderly environment, where teachers can teach and students learn.
• To command the English language – the key to the world.
• High academic expectations and aspirations.

Up to half of teaching is conducted in English by teachers whose native language is English. Over 900 teachers with qualified foreign teaching degrees are currently teaching in IES schools. They are mainly recruited from Canada, the USA, the UK and South Africa.

The IES student base is growing strongly. Over the past ten years, total operating income has increased by an average of 19% per year. In the most recent financial year 2018/19, which concluded on 30 June 2019, total operating income was MSEK 2,781.1, an increase of some 18% year on year. As of 31 December 2019, there were approximately 208,900 applications in the queue to secure a place in the Swedish schools for the current and forthcoming years.

Internationella Engelska Skolan has been listed on Nasdaq Stockholm Mid Cap, with the ticker ENG, since 2016.

The largest (indirect) shareholders of IES are TA Associates of the US, which has close affiliations to leading universities and trusts in the US, Barbara Bergström, the founder of IES, and Paradigm Capital AG through different funds. At the end of December 2019, the ten largest shareholders also included Swedbank Robur fonder and AMF Försäkring & Fonder (owned jointly by LO, the Swedish Trade Union Confederation and the Confederation of Swedish Enterprise).