AcadeMedia’s interim report, July – December 2022

Summary of the second quarter (October - December 2022)

Summary the first six months (July – December 2022)

The complete report will be made available at

https://old.academedia.duvadev.se/en/investors/reports-and-presentations/

Comments from CEO Marcus Strömberg

The second quarter of the financial year shows continued strong demand for our educational programmes. The number of children and students totals nearly 100,000, 5.9 percent higher than in the previous year. The strongest growth is evident in the Preschool Segment, which now also includes the acquisition of FAWZ in Germany. In addition, preschool operations in Germany and the Netherlands continue to expand. As expected, the quarter was affected by inflation, and volume in areas of the Adult Education segment is lower than last year. Higher vocational training in adult education continues to show good growth. At the same time, our school operations report strong interest ahead of the autumn start in 2023.

Accelerated international growth

Our strategy for international growth has been successful. Our platform acquisition in Germany in 2017 included seven units; we now have 95 units in Germany and the Netherlands, with a total of around 7,200 children and students.

Through the acquisition of FAWZ, AcadeMedia has taken an important step and extended its operations in Germany. In addition to preschool, AcadeMedia now also operates in the compulsory school, upper secondary school and adult education sectors in the country. This platform acquisition paves the way to new opportunities for growth in Germany. The need for new preschool places continues to grow and now stands at around 400,000. AcadeMedia is in a strong position and operations in Germany now consists of 80 preschool and 7 school units.

In the Netherlands, more than 50 percent of all preschools are privately run. In the previous financial year, AcadeMedia acquired two units, and has since started to build a platform through further acquisitions. We now operate eight units and believe there are good opportunities for growth, both organically and through further acquisitions.

AcadeMedia gaining market share in higher vocational education

In January, the Swedish National Agency for Higher Education (MYH) announced the numbers of programme places to be allocated to the various providers. AcadeMedia was allocated 7,300 places (5,872), with the first courses starting in autumn 2023. This means that AcadeMedia's adult education is gaining market share. The total allocation for the year was 35,000 places, on par with that of the previous year.

The programmes that MYH decides will start are determined by the needs of the labour market. Unemployment remains high in Sweden and there are major skills shortages in many sectors. Higher vocational education plays an important role in meeting society’s future challenges. AcadeMedia has long maintained a clear strategy to be the leading provider in this field, and we are grateful for the continued trust.

School voucher funding to increase in 2023 – inflation-proofed over time

Sweden’s municipalities continue to prioritise school and education, even though many are experiencing a hard-pressed financial situation. The Swedish model is based on the right of all students to an equal education. As a result, the school voucher system must reflect changes in costs in society over time. Stability in the school voucher system is crucial to the quality of Swedish schools.

Many municipalities have now decided on the school voucher funding for 2023. Based on about 70 percent of these decisions, the increase in school voucher funding in Sweden averages just over 4 percent (2.6) in our preschool and school operations. In Norway, school voucher funding is expected to increase by around 9 percent (2.8).

Strong interest in open house events

Choosing a school is an important decision, whether it's for a proud six-year-old starting school or a teenager taking an important step towards adulthood via their choice of upper secondary school. To enable students and guardians to make an informed choice, we at AcadeMedia put a lot of effort into providing information about our schools and we also invite children, students and guardians to visit them. The opportunity to meet their future teachers and students already attending the school, better equips the student to choose a school that provides the conditions they need to succeed.

During the late autumn, a large number of Open Houses are held at both compulsory and upper secondary schools, and we have seen a great deal of interest in our units. This great interest applies very much to our upper secondary school campuses, where several schools are housed under the same roof and share a number of facilities. Demand for upper secondary school places is high, especially in the larger cities where expansion of capacity provided by the community has not kept pace.

Roadmap 2030 

For a number of years, AcadeMedia has operated a clear plan for the future. We are now closing Roadmap 2023 and can confirm that we have delivered well on it. We have expanded our educational activities and educational profiles, invested in quality, and built capacity with new schools and campuses. As a result, demand and growth have been good.

We are now launching our Roadmap 2030, where the central message is that all of us at AcadeMedia will work to make the societies we work in a little better, every day. Our aim is to help change people's lives for the better and to create sustainable societies where everyone's right to a good education is fulfilled. The need for new places in education and training is great and investing in education and training is crucial to the development of society. AcadeMedia has already taken many important steps in this direction. We look forward to a rewarding and exciting 2023 – and are starting on the journey towards 2030

Marcus Strömberg
President and CEO 
AcadeMedia AB (publ) 

Presentation of the report

A web-cast telephone conference will be held at 09:30 CEST today, where CEO Marcus Strömberg and CFO Katarina Wilson will present 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: +46-8-5051-6386
UK: +44-20-319-84884
US: +1-412-317-6300
Pin code: 8265286#

You can follow the presentation and the conference on the following page: https://ir.financialhearings.com/academedia-q2-2023

The presentation material will be available before the conference begins on AcadeMedia web via:
https://old.academedia.duvadev.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@old.academedia.duvadev.se

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

About AcadeMedia
AcadeMedia creates opportunities for people to develop. The 18,800 employees at our 700 preschools, compulsory schools, upper secondary schools and adult education centres share a common focus on quality and development. Our 192,500 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, Germany, and Netherlands. 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.old.academedia.duvadev.se.

This information is information that AcadeMedia AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CET 2 February 2023.