AcadeMedia — Interim / Quarterly Report 2016

Aug 30, 2016

Year-end Report 2015/16

Fourth quarter (April 2016 – June 2016)

• Net sales increased by 8.1 percent to SEK 2,378 million (2,199).
• Operating profit (EBIT) increased by 35.4 percent to SEK 218 million (161). Adjusted for items affecting comparability the operating profit was SEK 238 million (237).
• Profit for the period was SEK 140 million (80).
• Cash flow from operating activities amounted to SEK 160 million (197).
• The average number of children and students in preschool, compulsory school and upper secondary school during the quarter was 64,342 (61,295), which was an increase of 5.0 percent.
• Basic earnings per share amounted to 1.63 SEK (0.95) ¹ and after dilution 1.63 SEK (0.95).
• The Company was listed on the Nasdaq Stockholm Stock Exchange on June 15.

Full year (July 2015 – June 2016)

• Net sales increased by 5.5 percent to SEK 8,611 million (8,163).
• Operating profit (EBIT) increased by 3.5 percent to SEK 535 million (517). Adjusted for items affecting comparability, operating profit was SEK 568 million (596).
• Net profit for the period was SEK 319 million (222).
• Cash flow from operating activities amounted to SEK 542 million (684).
• The number of children and students in preschool, compulsory school and upper secondary school amounted to 63,151 (60,897) which was an increase of 3.7 percent.
• Basic earnings per share amounted to 3.97 SEK (2.63) ² and after dilution 3,97 SEK (2,63).
• The Board of Directors proposes that no dividend be paid for the 2015/16 financial year

Significant events after the end of the reporting period

No significant events have occurred since the end of the reporting period.

The Group in figures

The quarter in figures		Fourth quarter			Full year
	2015/16	2014/15	Change	2015/16	2014/15	Change
Net sales, SEK m	2,378	2,199	8.1%	8,611	8,163	5.5%
EBITDA, SEK m	265	215	23.3%	721	720	0.1%
EBITDA margin	11.1%	9.8%	1.3 p/e	8.4%	8.8%	-0.4 p/e
Operating profit (EBIT), SEK m	218	161	35.4%	535	517	3.5%
EBIT margin	9.2%	7.3%	1.9 pp	6.2%	6.3%	-0.1 p/e
Adjusted operating profit (EBIT)*, SEK m	238	237	0.4%	568	596	-4.7%
Adjusted EBIT margin	10.0%	10.8%	-0.8 p/e	6.6%	7.3%	-0.7 p/e
Total financial items, SEK m	-33	-95	65.3%	-127	-269	52.8%
Income before taxes, SEK m	185	66	180.3%	408	249	63.9%
Profit/loss for the period, SEK m	140	80	75.0%	319	222	43.7%
Number of children and students	64,342	61,295	5.0%	63,151	60,897	3.7%
Number of FTEs	10,161	9,394	8.2%	9,704	9,159	6.0%

*For definitions see page 27

¹ Calculated with current number of shares basic earnings per share for the quarter amounted to 1.50 (0.85).

² Calculated with current number of shares basic earnings per share for the year amounted to 3.39 (2.36).

CEO's comments

AcadeMedia ends the financial year with strong growth. In summary, we can report a stable year, with good growth and an improved operating profit. Despite major investments in new establishments and several deferred contracts in adult education, our operating result is stable. The strong and stable growth during the year is based on a substantial increase in the number of students and participants, which is based on the growth of our existing operations, as well as on new establishments and acquisitions. During the year we acquired 20 units and completed 14 new establishments. These additions will reach full effect next year. We are also pleased to see that we are making good progress in our quality work and that our students are increasingly achieving their educational objectives.

Increased proportion of students reach goals

One of AcadeMedia's most important quality objectives as well as an important social objective, is for all students to achieve the goals of the educational program. In compulsory school, the preliminary grades show that 85.8 percent of all students pass in all subjects, an increase of 1.6 percentage points compared with the previous year. This should also be compared with the national average, which was 77 percent for spring semester 2015. Upper secondary school also shows progress for the financial year, as 89.7 percent of students graduated, which was an improvement of 2.3 percentage points compared with the previous year. AcadeMedia's results are somewhat better than the national average, which was 89.2 percent last year.

These achievements are positive for our students and show that our quality work pays off. We will continue to strive for even better student performance, with the goal that 100 percent of students achieve the educational goals.

Improved performance in adult education

After a fall with postponed contracts and competitor appeals regarding contracts we won, adult education now reports a strong performance with good margins and a steady participant flows. The fourth quarter shows a strong improvement in performance. Our breadth in adult education will enable us to follow the favorable market trend, which we believe will continue. The large number of refugees who have come to Sweden represent a great opportunity. By investing in adult education so that they can quickly obtain jobs and contribute to society, we solve many of the integration issues that otherwise rapidly can arise. AcadeMedia is Sweden's leader in integration in terms of both Swedish for Immigrants (Sfi) and various vocational courses.

Education market set to grow

The number of students in the school system will increase substantially over the next five years. Well over 100,000 new students are expected to enroll, both due to an increase in the number of students in age

group, and because of the large number of immigrants. Many new schools need to be built, especially in the major metropolitan areas, and the need for additional players is great. We also see a growing trend toward urbanization, which entails a large migration to regions and cities where AcadeMedia has the majority of its operations.

Student year groups in upper secondary schools are now at their lowest level and will grow by almost 20 percent over the next five years. The need for adult education will remain high, mainly because of the high level of immigration to Sweden, and the need for new skills. The need for preschools in Europe remains high since also the youngest children need and will be offered preschool education. AcadeMedia is a leader in preschools in Europe and the Nordic preschool model serves as a model for many countries.

Good growth forms a solid base for development

The trend for the fourth quarter regarding number of students and participants was good and the average number of students was 5.0 percent higher year on year. The volume growth, along with changes in price and mix, produced a revenue increase of 8.1 percent despite a negative currency effect. Operating profit improved in the fourth quarter mainly due to expenses affecting comparability previous year. The number of students for the full year increased by an average of 3.7 percent and sales rose 5.5 percent. The increase in sales was in line with the Group's annual growth target of 5-7 percent, excluding major acquisitions.

During the last quarter we developed our entire organization, including streamlining the support organization for our units. The costs for this reorganization have been expensed in the fourth quarter. At AcadeMedia the development of each unit is key. We have therefore focused on creating structures that support the competitiveness of our schools.

During the year AcadeMedia launched a strategic plan "Roadmap for 2020". The focus of this plan is to improve both quality and efficiency. We also aim to focus on digitization and in this context we are very excited about our recently established partnership with Schoolidoo, which develops digital learning materials.

Conclusion

AcadeMedia has consolidated its position as the leading education company in Northern Europe. We are now undergoing an exciting transformation into a leading international education company. AcadeMedia will develope through quality improvements and growth. We have made several advances over the past financial year, especially regarding quality performance, the acquisition in Germany and good volume growth. This forms a good base for further growth.

Marcus Strömberg

CEO

AcadeMedia AB (publ)

Development for the fourth quarter (April 2016 – June 2016)

Volume development and revenues

Net sales in the fourth quarter amounted to SEK 2,378 million (2,199), which is an increase of 8.1 percent year on year. The increase was primarily driven by increased volumes in the adult education, along with a 5.0 percent increase in the number of students in all three school segments to 64,342 (61,295), including a boost from several acquisitions.

Operating profit/loss (EBIT) and adjusted operating profit/loss

Operating profit (EBIT) for the fourth quarter (April – June) increased by 35.4 percent to SEK 218 million (161), representing an operating margin of 9.2 percent (7.3). Operating profit (EBIT) for the previous year was affected by a major restructuring charge.

Adjusted operating profit (EBIT) amounted to SEK 238 million (237), which is an improvement of 0.4 percent year on year and represented an adjusted EBIT margin of 10.0 percent (10.8). Increased expenses for higher social security contributions for young people had a negative impact on adjusted operating profit for the quarter of about SEK 8 million results compared with the previous year. New establishments and relocation expenses totaling SEK 7 million also had a negative impact on the quarter. A less favorable SEK/NOK exchange rate also had a negative impact on earnings. However, these negative effects were offset by positive developments in the Adult education segment compared with the previous year.

Items affecting comparability

Operating profit (EBIT) for the fourth quarter includes items affecting comparability of SEK -19 million (-76) as shown in the adjacent table. The majority of these expenses relate to costs associated with a major reorganization of support functions during the quarter in order to improve efficiency. See definitions for more information.

Net financial items

Net financial items for the quarter amounted to SEK -33 million (-95). Interest expense for the quarter dropped

Fourth quarter in summary by segment

to SEK -39 million (-56) due to of lower interest margins on the new financing agreement that was launched on July 7, 2015, and also due to a write-off of capitalized borrowing costs as a result of the new loan agreement.

Items affecting comparability	Fourth quarter
SEK m	2015/16	2014/15
Gains from the sale of properties, Norway	0	16
Restructuring expenses	3	-65
Operating expenses affecting comparability	-12	-23
Transaction related expenses	-4	-4
IPO expenses	-7	-
Total	-19	-76

Acquisitions, divestments, new units and discontinued operations

During the period four units were acquired within the Pre- and compulsory schools Sweden segment, while two units were acquired in the segment Preschool International (Norway). One unit in the Upper secondary school segment was sold during the third quarter (but was recorded as an active entity), which rendered net of five more units compared with the previous quarter. For details, see Note 1.

		Number of students (average)	m	Net sales, SEK	SEK m	Adjusted EBIT,	margin	Adj. EBIT	(EBIT), SEK m	Operating profit/loss	EBIT margin
	2015/16	2014/15	2015/16	2014/15	2015/16	2014/15	2015/16	2014/15	2015/16	2014/15	2015/16	2014/15
Pre- and compulsory schools (Sweden) 30,946		29,208	951	872	86	101	9.0%	11.6%	90	82	9.5%	9.4%
Upper secondary school (Sweden)	24,752	24,365	655	623	69	80	10.5%	12.8%	69	23	10.5%	3.7%
Adult education (Sweden)	–*	–*	381	323	55	18	14.4%	5.6%	55	3	14.4%	0.9%
Preschool International	8,643	7,722	390	380	40	56	10.3%	14.7%	40	72	10.3%	18.9%
Group adj., parent company	-	-	0	1	-14	-18	-	-	-36	-19	-	-
Total	64,342	61,295	2,378	2,199	238	237	10.0%	10.8%	218	161	9.2%	7.3%

*The volume of adult education is not measured based on the number of participants since the length of the programs varies

Development for the full year (July 2015 – June 2016)

Volume development and revenues

Net sales for the financial year amounted to SEK 8,611 million (8,163), which represents an increase of 5.5 percent year on year. The increase is driven primarily by the number of students in all the school segments which together increased by 3.7 percent to 63,151 (60,897). The largest sales growth was in the Pre- and compulsory schools segment, which increased its volumes through new establishments and several small acquisitions. Organic growth excluding acquisitions was 4.7 percent.

Operating profit/loss (EBIT) and adjusted operating profit/loss

Operating profit (EBIT) for the financial year July 2015 – June 2016 increased by 3.5 percent to SEK 535 million (517), representing an operating margin of 6.2 percent (6.3). Operating profit (EBIT) in both the current and previous year was affected by a restructuring expenses and other items affecting comparability (see table).

Adjusted operating profit (EBIT) amounted to SEK 568 million (596), which represents an adjusted EBIT margin of 6.6 percent (7.3).

Pre- and compulsory schools showed good growth but new establishments and relocation costs of SEK -26 million were charged to earnings. The new units are expected to make a positive contribution already next year. Increased expenses for higher social security contributions for young people had a negative impact on profit of about SEK 25 million compared with the previous year, with the majority attributable to the Preand compulsory schools segment. Earnings declined for the international preschool segment compared to previous year due to various effects: Increased rental expense following the sale of properties amounted to SEK -11 million, and a less favorable exchange rate SEK -7 million.

Items affecting comparability

Operating profit (EBIT) for the full year included items affecting comparability of SEK -32 million (-79) as shown in the adjacent table. SEK -15 million (-23) related to integration costs for the Adult education segment as well as the fourth-quarter staff reorganization. SEK -16 million (0) related to IPO costs, SEK -10 million (-7) was acquisition-related expenses and SEK 6 million (16) was capital gains from the sale of property in Norway in the first quarter. Restructuring costs for units being wound up in the Pre- and compulsory schools segment are expected to be less than planned. Therefore SEK 3 million (-65) of last year's restructuring expense was reversed. See definitions for more information.

Items affecting comparability	Full year
SEK m	2015/16	2014/15
Gains from the sale of properties, Norway	6	16
Restructuring expenses	3	-65
Operating expenses affecting comparability	-15	-23
Transaction related expenses	-10	-7
IPO expenses	-16	-
Total	-32	-79

Net financial items

Net financial items for the full year amounted to SEK -127 million (-269). Interest expense for the year was SEK -128 million (-218). Interest expense declined because of lower interest margins on the new loan agreement that also resulted in a write-off of capitalized borrowing costs last year. Loan repayments and low interest rates also contribute to an improvement in net financial items.

Acquisitions, divestments, new units and closures

The sale of three properties in Norway was completed on September 24, 2015.

Twenty units were acquired during the year (nine in the Pre- and compulsory schools segment in Sweden and eleven in the Preschool international segment, including four in Norway). One upper secondary school was sold during the third quarter, but was recorded as active during the period Q1-Q3. For details, see Note 1.

During the financial year, 14 units were established (nine units in the Pre- and compulsory schools segment in Sweden, one upper secondary school in Sweden and four preschools in Preschool International (Norway)). Two preschool units and one compulsory school in Sweden closed during the year.

Full-year in summary by segment

	Number of students (average)			Net sales, SEK m	Adjusted (EBIT), SEK m		margin	Adj. EBIT	(EBIT), SEK m	Operating profit/loss	EBIT margin
	2015/16	2014/15	2015/16	2014/15	2015/16	2014/15	2015/16	2014/15	2015/16	2014/15	2015/16	2014/15
Pre- and compulsory schools (Sweden)	30,081	28,709	3,434	3,159	203	212	5.9%	6.7%	206	193	6.0%	6.1%
Upper secondary school (Sweden)	25,014	24,739	2,421	2,341	198	191	8.2%	8.2%	198	134	8.2%	5.7%
Adult education (Sweden)	–*	–*	1,372	1,309	150	146	10.9%	11.2%	148	131	10.8%	10.0%
Preschool International	8,055	7,449	1,381	1,350	78	107	5.6%	7.9%	83	123	6.0%	9.1%
Group adj., parent company	-	-	3	2	-61	-60	-	-	-99	-64	-	-
Total	63,151	60,897	8,611	8,163	568	596	6.6%	7.3%	535	517	6.2%	6.3%

*The volume of adult education is not measured based on the number of participants since the length of the programs varies

Cash flow

Cash flow from operating activities before changes in working capital during the financial year amounted to SEK 612 million (623). The change in working capital during the full year was SEK -69 million (61) and was negatively impacted by certain large supplier payments carried out shortly before the closing date, which previous year were carried out after closing date. Working capital was also negatively impacted by SEK 30 million due to the drop in the SEK/NOK exchange rate, since working capital in Norway is negative. The increase in adult education operations also meant more accrued income than at the corresponding time last year. Cash flow from operating activities for the financial year amounted to SEK 542 million (684).

Cash flow from investing activities during the financial year amounted to SEK -386 million (-68). The increase in investments mainly related to the acquisition of Joki, a number of smaller acquisitions of preschools in Sweden, acquisitions of preschools in Norway, which also includes real estate assets. Construction of new preschools in Norway, where three new units are expected to start in autumn 2016 also contributed to negative cash flow from investment activities. This line item contains a positive cash flow from divestments of real estate assets, where three assets were sold 2015/16 compared to ten previous year. Cash flow from financing activities amounted to SEK -512 million (-476) due to higher loan repayments in conjunction with the refinancing agreement that took effect on July 7, 2015. The new share issue of SEK 350 million in connection with the IPO was used to repay several external loans totaling SEK 334 million. The interest expense for the repaid loans was SEK 40 million during the current year.

Financial position

Consolidated equity amounted to SEK 2,990 million (2,304) as of June 30, 2016 and the equity ratio was 42 percent (32). The increase in equity and the improvement in the equity ratio are a result of profits from the year and the new share issue of SEK 350 million conducted in connection with the IPO. Issue expenses totaled SEK 37 million, of which SEK 21 million (16 million net of tax) was charged to equity and SEK 16 million to profit and loss.

Consolidated interest-bearing net debt as of June 30, 2016 amounted to SEK 2,342 million (2,629). Net debt declined as a result of the new share issue proceeds being used to repay external loans amounting to SEK 334 million. Excluding property loans, which finance the fixed building assets. Adjusted net debt amounted to SEK 1,866 million (2,295). The purpose of this alternative performance measure adjusted net debt is to show the portion of debt that finances the operations, while real estate loans are linked to building assets which can be separated and sold.

Non-current interest-bearing liabilities to credit institutions amounted to SEK 2,079 million (2,299) and consist of loans from banks and the Norwegian State Housing Bank (Norw. Husbanken). Loans from credit institutions declined in the past 12 months thanks to both cash flows during the year that allowed amortization payments to be made as well as the sale of properties in Norway. At the same time, expansion in Norway resulted in a high rate of construction was financed with construction loans and loans from the Norwegian State Housing Bank for completed preschools. Expansion in Norway financed through Norwegian State Housing Bank-financed is deemed financially advantageous. Property loans have increased by SEK 141 million to SEK 476 million (335). Building assets have increased by SEK 136 million to SEK 638 million (502).

Current interest-bearing liabilities consist of a variable credit facility, current portions of long-term loans and construction loans, amounting to SEK 573 million (715). Current interest-bearing liabilities have declined due to the variable credit facility being paid down, and the current portion of long-term debt decreased.

Net debt in relation to adjusted EBITDA (rolling 12 months) amounted to 3.1 (3.3 as of June 30, 2015), compared with the Group's long-term target of a maximum of 3.0. Adjusted for property-related loans, property-adjusted net debt/adjusted EBITDA for the rolling 12 months amounted to 2.5 (2.9). This figure represents the portion of net debt that finances operations in relation to rolling 12-month adjusted EBITDA (see definitions below).

Parent company

The parent company AcadeMedia AB (publ) is the listed parent company of the Group with certain management functions. The CEO has been employed by the parent company since May 1, 2016 and the CFO since July 1, 2016. Sales during the financial year amounted to SEK 0 million (0), the operating result (EBIT) amounted to SEK -21 million (- 1) and profit after tax amounted to SEK 16 million (21). The parent company's assets principally consist of participations in Group companies. The business is financed primarily by equity contributed by the owners. Equity in the parent company as of June 30, 2016 was SEK 2,292 million (1,909).

Related party transactions

Related party transactions are described in detail in Note 1 in the 2014/15 Annual Report. The scope and nature of these transactions has not changed in any material respect during the year.

Owners and share capital

Number of shares	Ordinary shares	Ordinary class B	Ordinary class D	Ordinary class E	Preference class A shares	Preference class C1– C10 shares
Opening balance, July 1, 2015	0	71,456	10,963	1	7,435,624	507,208
Redemption of ordinary class E shares, Jan 4, 2016				-1
Reclassification Jan 4, 2016	8,025,251	-71,456	-10,963	0	-7,435,624	-507,208
Bonus issue Jan 4, 2016	71,974,749
Non-cash issue Feb 1, 2016	676,092
Bonus issue June 1, 2016	4,673,908
Rights issue June 15, 2016	8,750,000
Closing balance, June 30, 2016	94,100,000	0	0	0	0	0

AcadeMedia AB (publ) is a public limited company that was listed on Nasdaq Stockholm on June 15, 2016. Several transactions relating to share capital were carried out in 2016 as part of the preparations for the listing. On January 4, 2016, an extraordinary shareholders' meeting was held at which all of the shares were converted into ordinary shares. The shares were converted through reclassification and a bonus issue. On February 1, a non-cash issue of shares was made to the sellers of Joki as part of the consideration for the acquisition. On June 1, a shareholders' meeting was held to resolve on a bonus issue in order to achieve the appropriate number of shares prior to listing. Finally, another shareholders' meeting was held on June 15 to resolve on a new share issue for 8,750,000 shares to the stock market in connection with the listing, which raised SEK 334 million in new equity, net of issue expenses of SEK 16 million after tax.

Following these transactions there were 94,100,000 ordinary shares as of June 30, 2016. The quota value is SEK 1.00 per share. Share capital as of June 30, 2016 was SEK 94,100,000, an increase of SEK 86,074,748 since June 30, 2015. The increase in share capital is the result of two bonus issues, a non-cash issue and a new share issue during the financial year. See page 19 for a more detailed specification of the parent company's changes in equity.

EQT V indirectly owns 56.5 percent of AcadeMedia via the holding company Marvin Holding Ltd., which holds 64.5 percent of the shares in AcadeMedia AB as of June 30, 2016.

The family owned enterprise Mellby Gård acquired approximately 10 percent of the total number of shares in the company at the time of the IPO, with the option to, up until and including four days after the publication of the company's interim report for the period October 2016 – December 2016, acquire an additional 10 percent of the total number of shares in company from Marvin.

Incentive program

At the extraordinary shareholders' meeting of the Company on June 1, 2016, it was resolved to introduce two long-term incentive programs in the form of a share-matching program, directed at a maximum of 70 executives and other key employees in the Group, and a warrant program aimed at a maximum of eight Group management who were invited to invest in this program in addition to the share-matching program.

The incentive programs are designed to motivate and retain skilled employees, align interests regarding the goals of the employees and the Company, and to incentivize managers to achieve and exceed the Company's financial targets. The Board of Directors intends to evaluate the two incentive programs with respect to these objectives. If the programs serve their purposes, the Board intends to propose that future AGMs adopt similar incentive programs on a regular basis.

Share-matching program

The extraordinary shareholders' meeting approved a share-matching program aimed at no more than 70 executives and other key employees within the Group. As of June 30, 2016, 58 people had chosen to participate in the share-matching program.

Participation requires participants to acquire shares in the Company, or to allocate shares already held to the program, known as savings shares. Participants who, with certain exceptions, retain the savings shares during the term of the program from the first day of trading on Nasdaq Stockholm until the date of publication of the interim report for the period July 1 to September 30, 2018 and who are also employed by AcadeMedia throughout the term, will receive one matching share (without consideration) at the end of the period for each savings share held, provided that the total return (return to shareholders in the form of share price increases and reinvestment of any dividends during the term) on the Company's share throughout the term of the program exceeds 0 percent and that AcadeMedia has maintained a high standard for its educational services.

During the program the Board will carry out an evaluation and assessment of managements sound judgment with regard to quality of the education provided to the students. The number of matching shares which participants will be entitled to will be adjusted to compensate for any dividends paid on shares during the term. The maximum value of the right to receive one matching share is limited to five times the price of the share when it was listed on Nasdaq Stockholm. Should the value of such a right exceed this cap, the number of matching shares will be reduced proportionately.

As of June 30, 2016, executives have chosen to participate in the program so that the total number of shares to be allocated under the share-matching program will be a maximum of 110,747 shares, representing 0.12 percent of outstanding shares. Costs for the share-matching program are recognized under IFRS 2 and the valuation of the sharematching plan and social security contributions are based on a generally accepted valuation model (Monte Carlo simulation).

Warrant program

The extraordinary shareholders' meeting resolved to issue warrants as part of an incentive program aimed at Group management. Eligibility to participate in the program is limited to a maximum of eight senior executives, including the CEO. Participation requires a maximum personal investment in the share-matching program. The issue comprises a total of 540,000 warrants entitling holders to subscription for the same number of new shares in the Company. The offer was fully subscribed and 540,000 warrants were acquired. Participants acquired warrants for SEK 2.20 per warrant for a total of SEK 1.188 million SEK, which is considered to be the market value based on an independent valuation using the Black and Scholes model.

If the warrants are exercised in full the company's total shares and votes will be diluted by approximately 0.57 percent.

The warrants have an exercise price per share equivalent to 125 percent of the initial public offering price of SEK 40 per share, i.e. SEK 50 per share. The warrants may be exercised during two periods: for two weeks from the day after publication of the interim report for the third quarter of the 2018/2019 financial year and for two weeks from the day after publication of the interim report for the first quarter of the 2019/2020 financial year.

If the price of the Company's shares at should exceed 200 percent of the exercise price when the warrant is exercised, the exercise price will be increased by a corresponding excess amount. Maximum profit when exercising warrants is thus limited to SEK 50 per warrant.

The Company reserves the right, subject to certain exceptions, to repurchase warrants if the participant's employment with the Company is terminated or if the participant wishes to transfer warrants before the warrants can be exercised.

Pre- and compulsory schools (Sweden) segment

• The number of students increased by 6.0 percent to 30,946 (29,208) in the fourth quarter and revenues increased by 9.1 percent
• Operating profit (EBIT) increased by 9.8 percent to SEK 90 million (82) in the fourth quarter.
• Four preschools were acquired during the quarter

AcadeMedia's Pre- and compulsory schools segment operates pre- and compulsory schools throughout Sweden under the brands Pysslingen Förskolor, Pysslingen Skolor and Vittra. The schools are operated entirely based on the school voucher system. The segment had 226 units with an average of 30,946 children and students during the quarter.

Fourth quarter results

The average number of children and students increased by 6.0 percent compared to the previous year and amounted to 30,946 (29,208) for the fourth quarter. The increase was driven by growth in existing units, acquisitions and new units. Revenues increased by 9.1 percent to SEK 951 million (872). The increase follows an increase in the number of children and students as well as higher revenue per student.

Operating profit (EBIT) for the fourth quarter increased by 9.8 percent to SEK 90 million (82), representing an operating margin of 9.5 percent (9.4). However, adjusted operating profit of SEK 86 million (101) declined due positive items in the previous year, as well as costs relating to new establishments and school relocations of SEK -7 million, and higher employer contributions for young people of SEK -6 million.

Full-year results

The average number of children and students increased by 4.8 percent compared with the previous year to 30,081 (28,709). The increase was driven by growth in existing units, establishments and bolt-on acquisitions. Revenues increased by 8.7 percent and amounted to SEK 3,434 million (3,159). The increase is due to an increase in the number of children and students and to higher revenue per student.

Operating profit (EBIT) for the 2015/16 financial year increased by 6.7 percent and amounted to SEK 206 million (193), representing an operating margin of 6.0 percent (6.1). The adjusted operating profit of SEK 203 million (212) was lower mainly because establishments and relocation of schools had a negative impact of SEK -26 million in 2015/16. A higher employer contribution rate for young people, introduced on August 1, 2015, had a negative impact on profit of SEK -19 million compared with the previous year.

Development and key events during the full year

One preschool and one compulsory school were closed as of July 1, 2015 and one unit was closed at the end of November 2015. The discontinued operations had a positive effect of SEK 1 million compared with the prior year. During the year one compulsory school, two integrated preschools and six independent preschools were opened. New establishments and relocations of schools had a negative impact of SEK -26 million. Nine preschools were acquired during, contributing SEK 4 million to the operating profit for the period including the full-year impact of prior year acquisitions, the increase from acquisitions was SEK 11 million.

According to the preliminary grades for 2015/16, the percentage of students in grade 9 who earned a grade of at least E (pass) in all subjects increased to 85.8 percent (84.2), and the grade point average also improved.

Pre- and compulsory schools (Sweden)	Fourth quarter				Full year
	2015/16	2014/15	Change	2015/16	2014/15	Change
Net sales, SEK m	951	872	9.1%	3,434	3,159	8.7%
EBITDA, SEK m	102	95	7.4%	255	244	4.5%
EBITDA margin, %	10.7%	10.9%	-0.2 p/e	7.4%	7.7%	-0.3 p/e
Depreciation/amortization	-13	-12	-8.3%	-49	-51	3.9%
Operating profit (EBIT), SEK m	90	82	9.8%	206	193	6.7%
EBIT margin, %	9.5%	9.4%	0.1 p/e	6.0%	6.1%	-0.1 p/e
Items affection comparability, SEK m	3	-19	115.8%	3	-19	-115.8%
Adjusted operating profit (EBIT*), SEK m	86	101	-14.9%	203	212	-4.2%
Adjusted EBIT margin, %	9.0%	11.6%	-2.6 p/e	5.9%	6.7%	-0.8 p/e
Number of children and students	30,946	29,208	6.0%	30,081	28,709	4.8%
Number of units	226	211	7.1%	219	209	4.8%

Upper secondary school (Sweden) segment

• The number of students increased by 1.6 percent and sales increased by 5.1 percent during the fourth quarter compared with the previous year
• Operating profit (EBIT) increased by 200.0 percent and amounted to SEK 69 million (23) due to large restructuring expenses the previous year.
• Improved preliminary quality results

AcadeMedia's Upper secondary school segment provides upper secondary education throughout Sweden under 16 different brands, offering both academic and vocationally-oriented programs. The segment's brands include Klaragymnasierna, NTI, LBS, ProCivitas and Rytmus. The schools are run entirely based on the school voucher system. The segment had 105 units with a total of 24,752 students during the quarter.

Fourth quarter results

The number of students increased by 1.6 percent compared with the previous year and amounted to 24,752 (24,365). Revenues increased by 5.1 percent and amounted to SEK 655 million (623). The increase was due to growing number of students and higher revenue per student, primarily as a result of the annual price adjustment.

Operating profit (EBIT) for the fourth quarter increased by 200.0 percent compared with the corresponding quarter last year and amounted to SEK 69 million (23), which in turn represented an operating margin of 10.5 percent (3.7). The improvement is due to the fact that the fourth quarter last year included SEK -57 million in restructuring costs for units being wound up.

Adjusted operating profit was SEK 69 million (80), where the decrease from previous year was a calendar effect, as well as positive effects at the end of last year.

Full-year results

The number of students for the full financial year increased by 1.1 percent compared with the previous year, amounting to 25,014 (24,739). Revenues increased by 3.4 percent and amounted to SEK 2,421 million (2,341). The increase is due to an increased number of students and higher revenue per student, as well as retroactive reimbursement from municipalities. The growth is held back by the effect of winding up of seven schools.

Operating profit (EBIT) for the full year increased by 47.8 percent and amounted to SEK 198 million (134), representing an operating margin of 8.2 percent (5.7). Items affecting comparability amounted to 0 (-57) during the year. Adjusted operating profit improved by 3.7 percent and amounted to SEK 198 million (191).

Development and key events during the full year

Prior decisions to stop admissions to seven units entail the gradual winding down this year and next year. The reason for the closures was challenges related to attractiveness and student numbers. One of these units (FTG Västerås) was divested during the third quarter. Another unit (ITG Åkersberga) announced closed admissions for autumn 2016 in order to start winding down. One new unit (LBS) opened in Linköping in autumn 2015.

Preliminary student results at the end of the term show that the graduation rate increased to 89.7 percent (87.4). The grade point average also increased from 13.9 to 14.1.

Upper secondary school (Sweden)		Fourth quarter			Full year
	2015/16	2014/15	Change	2015/16	2014/15	Change
Net sales, SEK m	655	623	5.1%	2,421	2,341	3.4%
EBITDA, SEK m	93	50	86.0%	298	237	25.7%
EBITDA margin, %	14.2%	8.0%	6.2 p/e	12.3%	10.1%	2.2 p/e
Depreciation/amortization	-23	-27	14.8%	-100	-103	2.9%
Operating profit (EBIT), SEK m	69	23	200.0%	198	134	47.8%
EBIT margin, %	10.5%	3.7%	6.8 p/e	8.2%	5.7%	2.5 p/e
Items affection comparability, SEK m	0	-57	-100.0%	0	-57	-100.0%
Adjusted operating profit (EBIT), SEK m	69	80	-13.8%	198	191	3.7%
Adjusted EBIT margin, %	10.5%	12.8%	-2.3 p/e	8.2%	8.2%	0 p/e
Number of children and students	24,752	24,365	1.6%	25,014	24,739	1.1%
Number of units	105	105	0.0%	106	106	0.0%

Adult education (Sweden) segment

• Revenues increased by 18.0 percent during the fourth quarter compared with the previous year.
• Operating profit (EBIT) for the quarter surged and amounted to SEK 55 million (3).
• An interim agreement for the City of Stockholm was signed during the fourth quarter.

AcadeMedia's Adult education segment is Sweden's largest provider of adult education. AcadeMedia has been providing adult education since 1898 (via Hermods) and has solid expertise in the area of integrating and educating adults. Every year around 80,000 students and participants attend one of our programs. AcadeMedia works in close cooperation with the National Employment Agency as well as other authorities and municipalities in approximately 150 locations in the country. The segment includes the brands Hermods, NTI-skolan, Plushögskolan, Eductus and KompetensUtvecklingsInstitutet.

Fourth quarter results

Net sales for the fourth quarter were 18.0 percent higher than the corresponding period last year and amounted to SEK 381 million (323). The increase is mainly explained by higher participant volumes within the business units Hermods and the basic modules contract, but also within Sfi (Swedish for immigrants) courses.

The Eductus business area, which was very weak in the fourth quarter of 2014/15, has conducted a comprehensive program during the autumn to adjust staffing levels to actual volumes in contracts with the National Employment Agency. The program has had the desired effect, which contributed strongly to the segment's improved result in the fourth quarter compared with the previous year.

Operating profit (EBIT) for the fourth quarter surged to SEK 55 million (3), representing an operating margin of 14.4 percent (0.9). The improvement in profits and margin is mainly due to the volume increase within the Hermods business area, but also to the action program implemented within Eductus as described above.

Adjusted operating profit was SEK 55 (18), an increase of 205.6 percent.

Full-year results

Revenues for the full year amounted to SEK 1,372 million (1,309), which corresponded to an increase of 4.8 percent. The growth was held back by the weak start to the financial year. Operating profit (EBIT) amounted to SEK 148 million (131), which represents an increase of 13.0 percent and the operating margin was 10.8 percent (10.0). The increase is primarily attributable to the action program within Eductus, as well as increased volumes in the Hermods agreement areas basic modules and Sfi.

Items affecting comparability amounted to -3 (-15) and relate to integration costs attributable to the merger of AcadeMedia Adult Education and Hermods.

Adjusted operating profit was SEK 150 (146), an increase of 2.7 percent.

Development and key events during the full year

Christer Hammar took over as head of the Adult education segment in December 2015.

Adult education does not have recurring seasonal patterns in the same way as the school segments. Seasonal variation is influenced instead by the contract portfolio and community initiatives. Quarterly developments in 2015/16 compared with the previous year are influenced by these factors.

Adult education (Sweden)	Fourth quarter				Full year
	2015/16	2014/15	Change	2015/16	2014/15	Change
Net sales, SEK m	381	323	18.0%	1,372	1,309	4.8%
EBITDA, SEK m	56	7	700.0%	154	143	7.7%
EBITDA margin, %	14.7%	2.2%	12.5 p/e	11.2%	10.9%	0.3 p/e
Depreciation/amortization	-1	-4	75.0%	-6	-12	50.0%
Operating profit (EBIT), SEK m	55	3	1733.3%	148	131	13.0%
EBIT margin, %	14.4%	0.9%	13.5 p/e	10.8%	10.0%	0.8 p/e
Items affection comparability, SEK m	0	-15	-100.0%	-3	-15	-80.0%
Adjusted operating profit (EBIT*), SEK m	55	18	205.6%	150	146	2.7%
Adjusted EBIT margin, %	14.4%	5.6%	8.8 p/e	10.9%	11.2%	-0.3 p/e

Preschool International segment

• The number of students increased by 11.9 percent in the fourth quarter and sales increased by 2.6 percent compared with the fourth quarter last year.
• Operating profit (EBIT) declined by 44.4 percent to SEK 40 million (72) due to positive effects the previous year.
• Two units were acquired in Norway during the fourth quarter.

AcadeMedia's Preschool International segment operates preschools in Norway under the Espira brand and in Germany under the Joki brand. The segment was established through the acquisition of Espira in spring 2014 and was expanded in February 2016 by the acquisition of Joki in Germany. Espira is Norway's second largest preschool provider and has 86 units, mainly in western and southern Norway and in the Oslo area. Joki runs seven preschool units in the area around Munich.

Fourth quarter results

The average number of children in the fourth quarter increased by 11.9 percent to 8,643 (7,722). The large increase mainly relates to the acquisition of the German Joki operations, as well as establishments and bolt-on acquisitions in Norway. The segment's revenues increased by 2.6 percent to SEK 390 million (380). The increase in revenues does reflect the increase volume increase due to the less favorable SEK/NOK exchange rate.

Operating profit (EBIT) for the fourth quarter amounted to SEK 40 million (72), which represented a decrease in SEK of 44.4 percent. This gave an operating margin of 10.3 percent (18.9). Several factors accounted for the decrease in profit and margin. Rental costs were higher by SEK -3 million due to property sales, retroactive reimbursements were lower and amounted to SEK -1 million (9)

Adjusted operating profit was SEK 40 (56), which is a 28.6 percent decrease.

Full-year results

The average number of children increased by 8.1 percent for the financial year to 8,055 (7,449). The segment's revenues increased by 2.3 percent to SEK 1,381 million (1,350). Retroactive reimbursement in Norway during the period decreased to SEK 2 million (15). The less favorable SEK/NOK exchange rate had a negative impact on sales of SEK 118 million.

Operating profit (EBIT) for the financial year amounted to SEK 83 million (123), which is a decline in SEK of 32.5 percent and represents an operating margin of 6.0 percent (9.1). The declines in profit and margin compared with the previous year are mainly related to increased rental costs of SEK 11 million as a result of the sale of properties, as well as SEK 7 million due to a less favorable SEK/NOK exchange rate and also lower retroactive reimbursement of SEK 2 million (15).

Items affecting comparability amounted to SEK +6 million (+16), which related to capital gains on property sales and thus adjusted EBIT amounted to SEK 78 million (107), a decline of 27.1 percent.

Development and key events during the full year

The German preschool company Joki, with seven operating units, was acquired on February 1 and contributed SEK 33 million in sales and SEK 0 million in EBIT. During the year Espira in Norway opened four new preschools and also acquired four units.

Preschool International	Fourth quarter				Full year
	2015/16	2014/15	Change	2015/16	2014/15	Change
Net sales, SEK m	390	380	2.6%	1,381	1,350	2.3%
EBITDA, SEK m	49	82	-40.2%	110	157	-29.9%
EBITDA margin, %	12.6%	21.6%	-9 p/e	8.0%	11.6%	-3.6 p/e
Depreciation/amortization	-8	-10	20.0%	-26	-34	23.5%
Operating profit (EBIT), SEK m	40	72	-44.4%	83	123	-32.5%
EBIT margin, %	10.3%	18.9%	-8.6 p/e	6.0%	9.1%	-3.1 p/e
Items affection comparability, SEK m	0	16	-100.0%	6	16	-62.5%
Adjusted operating profit (EBIT*), SEK m	40	56	-28.6%	78	107	-27.1%
Adjusted EBIT margin, %	10.3%	14.7%	-4.4 p/e	5.6%	7.9%	-2.3 p/e
Number of children and students	8,643	7,722	11.9%	8,055	7,449	8.1%
Number of units	93	78	19.2%	87	78	11.5%

*Q4 13/14 Two months only

Employees

The average number of full-time employees was 9,714 (9,159), which represents an increase of 6.1 percent. The proportion of women in the Swedish operation was 69.6 (69.6) percent. The share of pedagogical staff decreased to 78.3 percent (81.0) due to Hermods staff now being included in the statistics, which was not the case in the last financial year. Employee turnover, measured as the number of individuals leaving the company, amounted to 25.7 percent accumulated over 12 months, compared with 22.8 percent accumulated in the corresponding period the previous year for the Swedish operation. The increase is believed to be an affect of the shortage of teachers which was enhanced be the requirement of teachers authorization which was enforced July 1st 2015. The increase in staff turnover is also an effect of restructuring in the Adult education segment during the year, the winding up of upper secondary schools as well as the reorganization of central staff. Absence due to illness in for Academedia employees in Sweden (cumulative average, short-term absence < 90 days) increased somewhat to 4.6 percent (4.4).

Risk factors

Significant operating, external and financial risks are described in detail in AcadeMedia AB's 2014/15 Annual Report and in the prospectus. Apart from the risks described in the Annual Report and the prospectus, no other significant risks are deemed to have emerged.

Operating risks include variations in demand and number of students, risk relating to the access of qualified employees and payroll expenses, risk relating to quality deficiencies, AcadeMedia's reputation and brand, permits, and liability and property risk. External risks include risk relating to school voucher funding and the general economy, political risk, changes in laws and regulations, and dependence on national authorities in the educational sector. Political risks may include introduction of an upper secondary school guarantee-fee, change in VAT-component in school vouchers or some form of limit on profits or dividends. A common factor for various political proposals is that the processes are usually long and proposals must be in legally enforceable proposals and must also pass approval in the Swedish parliament (Riksdag) vote. In addition, there are also financial risks such as credit and currency risks.

Seasonal variations

The first quarter of the Group's financial year includes the schools' summer vacations. During this period, when no operations are conducted, the Group's revenues are lower than in the other quarters. Personnel expenses are also lower since staff are on vacation. This also applies to preschools in Norway. Within the Adult education segment the level of activity is also lower during the summer months, as are revenues, and this is also the case over the Christmas and New Year period. During these periods, leave and vacation entitlement is taken, resulting in lower personnel expenses.

The salaries of the Group's employees are adjusted annually. The largest proportion of the Group's employees are teaching staff, whose salaries are adjusted as of September 1 each year, after which date personnel expenses increase without a corresponding increase in school voucher funding. This means that margins are usually lower in the second quarter of the financial year. The school vouchers are adjusted at the end of the calendar year, in both Norway and Sweden. As a consequence, revenues increase without any actual change in the cost base during the third and fourth quarters. The fourth quarter is usually the strongest in terms of profit, partly for the above reason and partly since there are decreases in direct costs, such as for school meals, and the vacation period begins, while revenues do not decline to the same extent. Within the Pre- and compulsory schools segment the positive developement in the fourth quarter is reinforced by the fact that children join on an ongoing basis during the year, particularly in May and June, which increases revenues accordingly.

Seasonal variations are somewhat different for Preschools in Norway, partly because of the Norwegian rules on personnel density that require greater personnel density for younger children than for older children. At the beginning of the autumn, the older children transfer to school and new younger children are admitted. This leads to increased staffing in order to meet the personnel density requirements. At the start of the calendar year the voucher sizes increase and the staff density levels can be adjusted to reflect that the younger children are deemed to be one year older. The consequence is that the second quarter of the financial year is the year's weakest quarter within this segment, with zero profit or even a slightly negative result.

Accounting policies

AcadeMedia applies the International Financial Reporting Standards (IFRS) as adopted by the EU. The accounting policies applied are the same as those described in AcadeMedia's 2014/15 Annual Report, which is available at www.academedia.se. No new accounting policies effective from 2015/16 have had any material impact on AcadeMedia. This Interim Report is prepared in accordance with IAS 34 Interim Financial Reporting, as well as the Annual Accounts Act. The parent company applies the Annual Accounts Act and the Swedish Financial Reporting Board's Recommendation RFR 2, Accounting for Legal Entities.

The same accounting policies are applied as in the most recent annual report.

Since the most recent annual report (2014/2015) AcadeMedia has issued two incentive programs to the employees, a warrant program and a share-matching program. Since the employees paid fair value for the warrants, they are not

subject to IFRS 2 – Share-based payments. Costs for the share-matching program are recognized according to IFRS 2, since employees receive shares free of charge provided that certain conditions are met.

Calendar

October 20, 2016 (updated)	Publication of 2015/2016 annual report
November 8, 2016	Q1
February 7, 2017 (preliminary)	Q2
May 10, 2017 (preliminary)	Q3
August 30, 2017 (preliminary)	Q4, year-end report 2016/2017

For further information please refer to AcadeMedia's website: www.academedia.se

This report has not been reviewed by the company's auditors

Stockholm August 30, 2016

Marcus Strömberg CEO

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

Eola Änggård Runsten, CFO Telephone: +46 8 794 4240 E-mail: eola.runsten@academedia.se

Christian Hall, Investor Relations Telephone: +46 763 111 242 E-mail: christian.hall@academedia.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 on 30 August 2016.

AcadeMedia AB (publ)

Corp. ID no. 556846-0231 Box 213, 101 24 Stockholm, Sweden tel. +46 8 794 42 00

www.academedia.se

Consolidated statement of comprehensive income in summary

	Fourth quarter		Full year
SEK m	2015/16	2014/15	2015/16	2014/15
Net sales	2,378	2,199	8,611	8,163
	2,378	2,199	8,611	8,163
Cost of goods sold	-208	-186	-802	-705
Other external expenses	-486	-439	-1,876	-1,805
Personnel expenses	-1,399	-1,285	-5,179	-4,854
Depreciation/amortization	-46	-52	-186	-203
Items affecting comparability1)	-19	-76	-32	-79
	-2,159	-2,037	-8,076	-7,646
OPERATINGINCOME	218	161	535	517
Interest income and similar profit/loss items	11	13	14	24
Interest expense and similar profit/loss items	-44	-108	-141	-293
	-33	-95	-127	-269
INCOME BEFORE TAX	185	66	408	249
Tax	-45	14	-89	-26
PROFIT/LOSS FOR THE PERIOD	140	80	319	222
Other comprehensive income
Items that will not be reclassified to profit/loss
Remeasurement of defined benefit pension plans	-3	-123	16	-123
Deferred tax relating to defined benefit pension plans	1	33	-4	33
	-2	-90	12	-90
Items that may be reclassified to profit/loss
Translation differences	11	-7	-12	-18
Other comprehensive income for the period	9	-97	0	-108
COMPREHENSIVE INCOME FOR THE PERIOD	149	-17	319	114
Profit for the period attributable to:
Stockholders of the parent company	140	80	319	222
Non-controlling interests	-	-	-	-
Comprehensive income for the period attributable to:
Stockholders of the parent company	149	-17	319	115
Non-controlling interests	-	-	-	-
Earnings per share basic/diluted (SEK)	1.63 / 1.63	0.95 / 0.95	3.97 / 3.97	2.63 / 2.63

1 Items affecting comparability are specified on pages 3–4; definitions on page 27

Consolidated statement of financial position in summary

SEK m	June 30, 2016	June 30, 2015
Intangible non-current assets	5,078	4,941
Buildings	638	502
Other property, plant and equipment	392	340
Other non-current assets	82	101
Total non-current assets	6,191	5,884
Current receivables	685	671
Cash and cash equivalents	331	695
Total current assets	1,016	1,366
TOTAL ASSETS	7,207	7,250
Total equity	2,990	2,304
Total non-current liabilities1	2,274	2,806
Total current liabilities1	1,944	2,140
TOTAL EQUITY AND LIABILITIES	7,207	7,250

¹ See Note 2

Consolidated statement of changes in equity

SEK m	Share capital	Other paid-in capital	Translation reserves	Retained earnings	Total equity
EQUITY, OPENING BALANCE, JULY 1, 2014	8	1,903	-2	280	2,189
Profit/loss for the year				222	222
Other comprehensive income			-18	-90	-108
Comprehensive income for the period	-	-	-18	133	114
Transactions with owners
Sum of Transactions with owners	-	-	-	-	-
EQUITY, CLOSING BALANCE, JUNE 30, 2015	8	1,903	-20	413	2,304

SEK m	Share capital	Other paid-in capital	Translation reserves	Retained earnings	Total equity
EQUITY, OPENING BALANCE, JULY 1, 2015	8	1,903	-20	413	2,304
Profit/loss for the year				319	319
Other comprehensive income			-12	12	0
Comprehensive income for the period			-12	331	319
Transactions with owners
Redemption of shares		0			0
Warrant program		1			1
Share-matching program		0			0
New share issue	9	341			350
Issue expenses		-21			-21
Tax on issue expenses		5			5
Bonus issue	76	-76			0
Non-cash issue	1	32			33
Sum of Transactions with owners	86	282	-	-	368
EQUITY, CLOSING BALANCE, JUNE 30, 2016	94	2,185	-32	744	2,990

No non-controlling interest present

Consolidated cash flow statement in summary

	Fourth quarter		Full year
SEK m	2015/16	2014/15	2015/16	2014/15
Operating profit/loss (EBIT)	218	162	535	517
Adjustment for items affecting cash flow	48	22	172	160
Tax paid	-48	-8	-96	-54
Cash flow from operating activities before changes in working capital	219	176	612	623
Cash flow from changes in working capital	-59	21	-69	61
Cash flow from operating activities	160	197	542	684
Cash flow from investing activities	-164	138	-386	-68
Cash flow from financing activities	-187	-211	-512	-476
CASH FLOW FOR THE PERIOD	-192	125	-355	140
Cash and cash equivalents at beginning of period	517	574	695	562
Exchange-rate differences in cash and cash equivalents	6	-3	-8	-7
Cash and cash equivalents at end of period	331	695	331	695

Parent company income statement in summary

		Fourth quarter	Full year
SEK m	2015/16	2014/15	2015/16	2014/15
Net sales	0	-	0	-
Operating expenses	-10	0	-21	-1
OPERATING PROFIT/LOSS (EBIT)	-10	0	-21	-1
Interest expense and similar profit/loss items	-11	-10	-42	-38
PROFIT/LOSS BEFORE TAX	-21	-10	-63	-39
Year-end appropriations	84	65	84	65
Tax	-5	-6	-5	-6
PROFIT/LOSS FOR THE PERIOD	58	50	16	21

Parent company other comprehensive income

	Fourth quarter		Full year
SEK m	2015/16	2014/15	2015/16	2014/15
Other comprehensive income
Items that will not be reclassified to profit/loss	-	-	-	-
Items that may be reclassified to profit/loss	-	-	-	-
Other comprehensive income for the period	-	-	-	-
COMPREHENSIVE INCOME FOR THE PERIOD	58	50	16	21

Parent company balance sheet in summary

SEK m	June 30, 2016	June 30, 2015
Participations in Group companies	2,219	2,186
Deferred tax assets	1	1
Total non-current assets	2,219	2,187
Current receivables	86	-
Cash and bank balances	15	15
Total current assets	101	15
TOTAL ASSETS	2,320	2,202
Restricted equity	94	8
Non-restricted equity	2,198	1,901
Total equity	2,292	1,909
Non-current liabilities	0	288
Current liabilities	28	5
TOTAL EQUITY AND LIABILITIES	2,320	2,202

Parent company statement of changes in equity

	Restricted equity		Non-restricted equity
SEK m	Share capital	Statutory reserve	Share premium reserve	Retained earnings	Total equity
Opening balance, July 1, 2014	8		1,903	-23	1,888
Profit/loss for the year / Comprehensive income				21	21
Comprehensive income for the period				21	21
Transactions with owners
Sum of Transaction with owners	-	-	-	-	-
Closing balance, June 30, 2015	8	-	1,903	-2	1,909

		Restricted equity	Non-restricted equity
SEK m	Share capital	Statutory reserve	Share premium reserve	Retained earnings	Total equity
Opening balance, July 1, 2015	8		1,903	-2	1,909
Profit/loss for the year / Comprehensive income				16	16
Comprehensive income for the period				16	16
Transactions with owners
Redemption of shares			0		0
New share issue	9		341		350
Issue expenses			-21		-21
Tax on issue expenses			5		5
Warrant program			1		1
Share-matching program				0	0
Bonus issue	77		-77		0
Non-cash issue	1		32		32
Sum of Transactions with owners	86		281	0	367
Closing balance, June 30, 2016	94	-	2,184	14	2,292

No possessions without limited influence present

Notes

Note 1: Acquisitions

Acquiring company	Acquired company	Förvärvsdatum	Segment
Pysslingen Förskolor och Skolor AB	Sjötullen	13-jul-15	Pre- and compulsory school
Pysslingen Förskolor och Skolor AB	WanWett AB	01-nov-15	Pre- and compulsory school
Pysslingen Förskolor och Skolor AB	Landborgen Prästgatan Förskolor AB	01-feb-16	Pre- and compulsory school
Pysslingen Förskolor och Skolor AB	Lärkträdets Förskola AB	01-mar-16	Pre- and compulsory school
Pysslingen Förskolor och Skolor AB	Färjan AB	01-jun-16	Pre- and compulsory school
Pysslingen Förskolor och Skolor AB	Vårberga Förskola AB	01-jun-16	Pre- and compulsory school
Pysslingen Förskolor och Skolor AB	Förskoleaktiebolaget Hattstugan	01-jun-16	Pre- and compulsory school
Espira Gruppen AS	Espira Stansa AS	01-apr-16	Pre- and compulsory school
Espira Gruppen AS	Espira Varbak Arcen AS	01-apr-16	Preschool international
Espira Gruppen AS	Espira Scala Hundvåg Tasta AS	01-jun-16	Preschool international
AcadeMedia GmbH	Harlaching GmbH	01-feb-16	Preschool international
AcadeMedia GmbH	Pasing GmbH	01-feb-16	Preschool international

The acquisitions in total represent a value of less than firvee percent of the group wherefore they are not specificed separately

In all of the acquisitions, the purchase consideration was in the form of a cash payment as well as a non-cash issue of shares in AcadeMedia AB (publ). There was only one agreement with a conditional or deferred consideration and it is maximum SEK 2 million.

Details of the net assets and goodwill acquired are given below. Goodwill attributed to company value exceeding net assets is not tax-deductible where-as goodwill attributed to assets in asset based acquisitions is tax-deductible.

The purchase price allocations for all acquisitions made during the financial year are preliminary.

Acquisition effects of acquisitions made	2015/2016
Purchase consideration including transaction expenses	208
Purchase consideration excluding transaction expenses	203
Fair value of acquired net assets excluding goodwill	-47
Total goodwill	156

Fair values acquired	2015/2016
Intangible non-current assets	0
Property, plant and equipment	80
Financial non-current assets	2
Current assets	13
Cash and cash equivalents	23
Non-current loans	-25
Other current liabilities	-28
Current tax liability	-4
Deferred tax liability	-14
Net assets acquired	47

The fair value of acquired receivables is included in current assets and amounts to SEK 13 million. The receivables are expected to be received in full. Goodwill that has arisen in connection with acquisitions consists of synergies with existing businesses, resources such as personnel, education programs, recruitment and personnel development and service organization, that can be streamlined as a result of the acquisitions.

Impact of the acquisitions on the Group's cash and cash equivalents	2015/2016
Purchase consideration agreed	203
Less purchase consideration that has not been settled in cash as of June 30, 2016.	-35
Cash and cash equivalents at time of acquisition	-22
Impact on the Group's cash and cash equivalents	147

20

Contribution of acquisitions to consolidated profit	2015/2016
Net sales	81
Operating profit (EBIT)	8
If the units had been included in consolidated profit from July 1, 2015 the contribution would have been	2015/2016
Net sales	226

Operating profit (EBIT) 16

Note 2: Specification of liabilities
SEK m	June 30, 2016	June 30, 2015
Non-current liabilities
Non-current liabilities to credit institutions excl. property loans	1,806	2,125
Non-current interest-bearing liabilities – properties	273	174
Non-current liabilities (interest-bearing)	32	310
Non-current liabilities (non-interest-bearing)	163	197
TOTAL Non-current liabilities	2,274	2,806
Current liabilities
Liabilities to credit institutions and other current interest-bearing liabilities	370	554
Current interest-bearing liabilities – properties	203	161
Accounts payable and other current non-interest-bearing liabilities	467	545
Accrued expenses and deferred income	903	880
TOTAL current liabilities	1,944	2,140

Note 3: Specification of financial income and expenses

SEK m	Fourth quarter		Full year
	2015/16	2014/15	2015/16	2014/15
Interest income and similar profit/loss items
Interest income	10	5	13	13
Derivatives	1	0	1	10
Other	0	8	0	1
Interest income and similar profit/loss items	11	13	14	24
Interest expense and similar profit/loss items
Interest expense	-39	-56	-128	-218
Borrowing costs *)	-2	-50	-6	-73
Foreign exchange losses	-1	0	-3	-1
Other	-1	-2	-4	-1
Interest expense and similar profit/loss items	-44	-108	-141	-293

*) Handling charges for new loans are expensed over the term of the loan using the effective interest method. In 2014/15 scheduled depreciation/amortization was SEK 28 million. In conjunction with a new loan agreement June 30, 2015 the remaining borrowing costs, which amounted to SEK 45 million, were expensed. A total of SEK 73 million was expensed for the year 2014/15. In 2015/16, only scheduled amortization of capitalized borrowing costs was taken.

Note 4: Financial instruments

AcadeMedia's financial instruments consist of accounts receivable, other receivables, accrued income, cash and cash equivalents, accounts payable, accrued trade payables, interest-bearing liabilities and currency derivatives. Since loans with credit institutions attract variable interest, which is essentially deemed to correspond to current market interest rates, the book value excluding loan expenses is considered to essentially correspond to fair value. Currency derivatives are measured at fair value based on input data corresponding to level 2 of IFRS 13. Other financial assets and liabilities have short terms. It is therefore deemed that the fair values of all of the financial instruments are approximately equal to their book values.

Multi-year overview

SEK million, unless otherwise stated	Fourth quarter			Full year
	2015/16	2014/15	2015/16	2014/15	2013/14	2012/13
Profit/loss items, SEK M
Net sales	2,378	2,199	8,611	8,163	6,372	5,125
Items affecting comparability	-19	-76	-32	-79	-35	-14
EBITDA	265	215	721	720	614	514
Depreciation/amortization	-46	-54	-186	-203	-164	-139
Operating profit/loss (EBIT)	218	161	535	517	449	376
Net financial items	-33	-95	-127	-269	-209	-255
Profit/loss for the period before tax	185	66	408	248	240	121
Profit/loss for the period after tax	140	80	319	222	189	128
Balance sheet items, SEK m
Non-current assets	6,191	5,884	6,191	5,884	5,945	4,151
Current receivables and inventories	685	671	685	671	654	537
Cash and cash equivalents	331	695	331	695	562	338
Non-current interest-bearing liabilities	2,111	2,609	2,111	2,609	3,020	2,308
Non-current non-interest-bearing liabilities	163	197	163	197	131	88
Current interest-bearing liabilities	573	715	573	715	469	207
Current non-interest-bearing liabilities	1,370	1,425	1,370	1,425	1,352	857
Equity	2,990	2,304	2,990	2,304	2,189	1,566
Total assets	7,207	7,250	7,207	7,250	7,161	5,026
Capital employed	5,674	5,628	5,674	5,628	5,679	4,082
Net debt	2,342	2,629	2,342	2,629	2,927	2,178
Property-adjusted net debt	1,866	2,295	1,866	2,295	2,563	2,178
Key ratios
Operating margin (EBIT), %	9.2%	7.3%	6.2%	6.3%	7.0%	7.3%
Adjusted EBIT, SEK m	238	237	568	596	485	389
Adjusted EBIT margin, %	10.0%	10.8%	6.6%	7.3%	7.6%	7.6%
Adjusted EBITDA, SEK m	284	291	753	799	649	528
Adjusted EBIT margin, %	11.9%	13.2%	8.7%	9.8%	10.2%	10.3%
Net margin, %	5.9%	3.6%	3.7%	2.7%	3.0%	2.5%
Return on capital employed, %, (12 months)	10.3%	10.8%	10.3%	10.8%	10.0%	9.8%
Return on equity, % (12 months)	12.1%	9.9%	12.1%	9.9%	10.1%	8.5%
Equity/assets ratio, %	41.5%	31.8%	41.5%	31.8%	30.6%	31.2%
Interest coverage ratio, xx	4.5	2.8	4.5	2.8	2.7	1.7
Net debt/Adjusted EBITDA (12 months)	3.1	3.3	3.1	3.3	4.5	4.1
Adjusted net debt/Adjusted EBITDA (12 months)	2.5	2.9	2.5	2.9	3.9	4.1
Cash flow from investing activities	-164	138	-386	-68	-864	-95
Number of full-time employees	10,161	9,394	9,704	9,159	6,997	6,087

Quarterly data, Group

Quarterly data			2015/16			2014/15			2013/14
SEK million, unless otherwise stated	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Net sales	2,378	2,316	2,239	1,679	2,199	2,177	2,146	1,641	2,011
EBITDA	265	244	140	72	215	220	168	117	246
Depreciation/amortization	-46	-48	-50	-42	-54	-52	-48	-48	-50
Items affecting comparability	-19	-4	-7	-3	-76	-1	-2	-1	-21
Operating income (EBIT)	218	196	90	31	161	167	119	69	196
Total financial items	-33	-29	-28	-37	-95	-48	-60	-65	-65
Income before taxes	185	167	62	-6	66	120	59	3	131
Tax for the current period	-45	-38	-14	8	14	-25	-14	-1	-30
Profit/loss for the period	140	129	48	2	80	94	45	3	100
Number of children/students, schools	64,342	63,716	62,443	62,103	61,295	61,269	60,570	60,452	57,623
Number of full-time employees	10,161	9,783	9,588	9,283	9,394	9,205	9,157	8,881	9,174
Number of education units	424	419	404	399	394	392	391	391	394
Key ratios
Operating margin (EBIT), %	9.2%	8.5%	4.0%	1.8%	7.3%	7.7%	5.5%	4.2%	7.2%
Adjusted EBIT	238	199	97	34	237	168	121	69	217
Adjusted EBIT, %	10.0%	8.6%	4.3%	2.0%	10.8%	7.7%	5.6%	4.2%	10.8%
Net margin, %	5.9%	5.6%	2.1%	0.1%	3.6%	4.3%	2.1%	0.2%	5.0%
Return on equity, % (12 months)	12.1%	10.8%	9.9%	9.8%	9.9%	12.0%	10.7%	10.4%	10.1%
Return on capital employed, %, (12 months)	10.3%	10.1%	10.0%	10.4%	10.8%	11.4%	10.9%	10.6%	10.0%
Equity/assets ratio, %	41.5%	34.6%	33.7%	32.9%	31.8%	31.8%	31.0%	30.7%	30.6%
Net debt/Adjusted EBITDA (12 months)	3.11	3.44	3.57	3.55	3.30	3.71	4.13	4.33	4.51
Interest coverage ratio	4.54	4.03	3.23	3.05	2.85	2.70	2.63	2.61	2.73
Other
Cash flow from operating activities	164	128	267	-13	197	197	193	96	208
Cash flow from investing activities	-164	-101	-85	-35	138	-48	-77	-81	-305

Quarterly data, segment

SEK million, unless otherwise stated		2015/16				2014/15			2013/14
Pre- and compulsory School (Sweden)	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Number of children/students (average)	30,946	30,471	29,622	29,286	29,208	28,953	28,477	28,198	28,743
Net sales	951	933	889	661	872	844	831	613	830
EBITDA	102	92	48	13	95	74	56	19	103
EBITDA margin, %	10.7%	9.9%	5.4%	2.0%	10.9%	8.8%	6.7%	3.1%	12.4%
Depreciation/amortization	-13	-13	-13	-11	-12	-13	-14	-12	-12
Operating profit/loss (EBIT)	90	79	35	2	82	61	42	8	91
EBIT margin, %	9.5%	8.5%	3.9%	0.3%	9.4%	7.2%	5.1%	1.3%	11.0%
Items affecting comparability	3	0	0	0	-19	0	0	0	0
Adjusted operating profit/loss (EBIT)	86	79	35	2	101	61	42	8	91
Adjusted EBIT margin, %	9.0%	8.5%	3.9%	0.3%	11.6%	7.2%	5.1%	1.3%	11.0%
Number of education units	226	222	217	212	211	208	208	208	211

SEK million, unless otherwise stated		2015/16				2014/15			2013/14
Upper secondary school (Sweden)	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Number of children/students (average)	24,752	24,917	25,144	25,244	24,365	24,676	24,884	25,031	23,846
Net sales	655	641	640	485	623	625	621	472	601
EBITDA	93	90	71	44	50	78	67	42	108
EBITDA margin, %	14.2%	14.0%	11.1%	9.1%	8.0%	12.5%	10.8%	8.9%	18.0%
Depreciation/amortization	-23	-27	-28	-22	-27	-27	-28	-22	-26
Operating profit/loss (EBIT)	69	63	43	22	23	51	39	20	82
EBIT margin, %	10.5%	9.8%	6.7%	4.5%	3.7%	8.2%	6.3%	4.2%	13.6%
Items affecting comparability	0	0	0	0	-57	0	0	0	0
Adjusted operating profit/loss (EBIT)	69	63	43	22	80	51	39	20	82
Adjusted EBIT margin, %	10.5%	9.8%	6.7%	4.5%	12.8%	8.2%	6.3%	4.2%	13.6%
Number of education units	105	106	106	106	105	106	106	106	108

SEK million, unless otherwise stated		2015/16				2014/15			2013/14
Adult education (Sweden)	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Net sales	381	364	353	274	323	338	357	291	324
EBITDA	56	48	36	13	7	43	51	42	24
EBITDA margin, %	14.7%	13.2%	10.2%	4.7%	2.2%	12.7%	14.3%	14.4%	7.4%
Depreciation/amortization	-1	-2	-2	-2	-4	-3	1	-6	-7
Operating profit/loss (EBIT)	55	46	35	12	3	40	52	36	17
EBIT margin, %	14.4%	12.6%	9.9%	4.4%	0.9%	11.8%	14.6%	12.4%	5.2%
Items affecting comparability	0	0	-1	-2	-15	0	0	0	0
Adjusted operating profit/loss (EBIT)	55	46	35	14	18	40	52	36	17
Adjusted EBIT margin, %	14.4%	12.6%	9.9%	5.1%	5.6%	11.8%	14.6%	12.4%	5.2%

Quarterly data, segment (cont.)

SEK million, unless otherwise stated		2015/16				2014/15			2013/14
International Preschool	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Number of children (average)	8,643	8,328	7,677	7,573	7,722	7,640	7,209	7,223	5,034
Net sales	390	376	356	259	380	368	337	265	256
EBITDA	49	33	8	19	82	41	11	23	49
EBITDA margin, %	12.6%	8.8%	2.2%	7.3%	21.6%	11.1%	3.3%	8.7%	19.1%
Depreciation/amortization	-8	-6	-6	-6	-10	-9	-7	-8	-5
Operating profit/loss (EBIT)	40	28	2	13	72	32	4	15	44
EBIT margin, %	10.3%	7.4%	0.6%	5.0%	18.9%	8.7%	1.2%	5.7%	17.2%
Items affecting comparability	0	0	0	6	16	0	0	0	0
Adjusted operating profit/loss (EBIT)	40	28	2	8	56	32	4	15	44
Adjusted EBIT margin, %	10.3%	7.4%	0.6%	3.1%	14.7%	8.7%	1.2%	5.7%	17.2%
Number of preschool units	93	91	81	81	78	78	77	77	75

SEK million, unless otherwise stated		2015/16				2014/15			2013/14
Group-OH and adjustments	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Net sales	0	2	1	0	1	1	0	0	0
EBITDA	-35	-20	-23	-18	-18	-16	-17	-10	-38
Depreciation/amortization	-1	-1	-1	-1	-1	-1	-1	-1	0
Operating profit/loss (EBIT)	-36	-21	-24	-18	-19	-17	-18	-11	-38
Items affection comparability	-22	-3	-6	-6	-1	-1	-2	-1	-21
Adjusted operating profit/loss (EBIT)	-14	-17	-18	-12	-18	-16	-17	-10	-17

SEK million, unless otherwise stated		2015/16				2014/15			2013/14
GROUP	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Number of children (average)	64,342	63,716	62,443	62,103	61,295	61,269	60,570	60,452	57,623
Net sales	2,378	2,316	2,239	1,679	2,199	2,177	2,146	1,641	2,011
EBITDA	265	244	140	72	215	220	168	117	246
EBITDA margin, %	11.1%	10.5%	6.3%	4.3%	9.8%	10.1%	7.8%	7.1%	12.2%
Depreciation/amortization	-46	-48	-50	-42	-54	-52	-48	-48	-50
Operating profit/loss (EBIT)	218	196	90	31	161	167	119	69	196
EBIT margin, %	9.2%	8.5%	4.0%	1.8%	7.3%	7.7%	5.5%	4.2%	9.7%
Items affecting comparability	-19	-4	-7	-3	-76	-1	-2	-1	-21
Adjusted operating profit/loss (EBIT)	238	199	97	34	237	168	121	69	217
Adjusted EBIT margin, %	10.0%	8.6%	4.3%	2.0%	10.8%	7.7%	5.6%	4.2%	10.8%
Net financial items	-33	-29	-28	-37	-95	-48	-60	-65	-65
Profit/loss after financial items	185	167	62	-6	66	120	59	3	131
Tax	-45	-38	-14	8	14	-25	-14	-1	-30
Profit/loss for the period	140	129	48	2	80	94	45	3	100
Number of full-time employees (period)	10,161	9,783	9,588	9,283	9,394	9,205	9,157	8,881	9,174
Number of units	424	419	404	399	394	392	391	391	394

Reconciliation of alternative performance measures

Below are calculations for the alternative performance measures used in the report. See definitions for more details.

	Fourth quarter			Full year
SEK million, unless otherwise stated	2015/16	2014/15	2015/16	2014/15	2013/14	2012/13
Net debt
Non-current interest-bearing liabilities	2,111	2,609	2,111	2,609	3,020	2,308
+ Current interest-bearing liabilities	573	715	573	715	469	207
- Non-current interest-bearing receivables*	11	0	11	0	0	0
- Cash and cash equivalents	331	695	331	695	562	338
= Net debt	2,342	2,629	2,342	2,629	2,927	2,178
Property-adjusted net debt
Net debt (as described above)	2,342	2,629	2,342	2,629	2,927	2,178
- non-current property loans	273	174	273	174	288	0
- current property loans	203	161	203	161	76	0
= Property-adjusted net debt	1,866	2,294	1,866	2,295	2,563	2,178
Return on capital employed, %, 12 months
Adjusted operating profit EBIT (12 months)	568	596	568	596	485	389
+ Interest income	13	13	13	13	2	3
divided by
Average equity (12 months)	2,647	2,247	2,647	2,247	1,878	1,502
+ average non-current interest-bearing liabilities (12 months)	2,360	2,815	2,360	2,815	2,664	2,300
+ average current interest-bearing liabilities (12 months)	644	592	644	592	338	182
= Return on capital employed, %, 12 months	10.3%	10.8%	10.3%	10.8%	10.0%	9.8%
Return on equity, % (12 months)
Profit/loss after tax (12 months)	319	222	319	222	189	128
divided by
Average equity (12 months)	2,647	2,247	2,647	2,247	1,878	1,502
= Return on equity, %, 12 months	12.0%	9.9%	12.0%	9.9%	10.1%	8.5%
*) Included in Other non-current assets

		2015/16				2014/15			2013/14
SEK million, unless otherwise stated	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1	Q4
Interest coverage ratio
Adjusted operating profit EBIT (12 months)	568	567	536	559	596	575	533	511	485
+ Interest income (12 months)	13	8	17	14	13	9	1	1	2
+ Other financial income (12 months)	1	8	10	10	11	4	1	0	8
divided by
Interest expense (12 months)	-128	-145	-174	-191	-218	-218	-203	-196	-181
= Interest coverage ratio	4.54	4.03	3.23	3.05	2.85	2.70	2.63	2.61	2.73

Definitions

Other information has been included to align this report to ESMA's (European Securities and Markets Authority's) guidelines on alternative performance indicators.

Key ratio	Definition	Purpose3
Absence due to illness	Short-term and long-term absence due to illness recalculated to full-time divided by the number of full-time employees (FTE).	Absence due to illness is used to measure employee absence and provide indications of employee health.
Adjusted EBIT	Operating profit/loss excluding items affecting comparability.	Adjusted EBIT is used to get a better picture of the underlying operating profit.
Adjusted EBIT margin	Adjusted EBIT as a percentage of net revenues.	Adjusted EBIT margin sets underlying operating profit in relation to sales.
Adjusted EBITDA	Operating profit/loss before depreciation/amortization of property, plant and equipment and intangible non-current assets.	Adjusted EBITDA is used to measure underlying profit from operating activities, regardless of depreciation/amortization and excluding items affecting comparability.
Adjusted net debt	Net debt net of property-related loans, i.e. loans in the Norwegian State Housing Bank, building loans for ongoing construction projects and other property loans in Norway.	Adjusted net debt shows the portion of loans that finance the business, while property loans are linked to a building asset that can be separated and sold.
Adjusted net debt/Adjusted EBITDA	Adjusted net debt divided by adjusted EBITDA.	Net debt/adjusted EBITDA is a theoretical measure of how many years it would take, with current earnings excluding items affecting comparability (adjusted EBITDA), to pay off the Company's liabilities, excluding property-related loans.
Adjusted return on capital employed	Adjusted EBIT + interest income for the most recent 12-month period divided by average capital employed (opening balance + closing balance)/2.	Adjusted return on capital employed is used to set adjusted operating profit/loss in relation to total tied up capital regardless of type of financing.
Capital employed	Total assets less non-interest bearing liabilities and provisions as well as deferred tax liabilities. Or: Equity plus non-current and current interest-bearing liabilities.	Capital employed indicates how much capital is needed to run the business regardless of type of financing (borrowed or equity).
Cash flow from investments	Cash flow from investing activities according to the cash flow analysis. This includes acquisitions, investments and divestments of buildings, as well as investments in property, plant and equipment and intangible assets. Investments financed with leases are not included.	Cash flow from investments is used to regularly measure how much cash is used to maintain operations and for expansion.
Cash flow from operating activities	Cash flow from operating activities including changes in working capital and before cash flows from investing and financing activities.	Cash flow from operating activities is used as a measure of the cash flow that the Company generates before investments and financing.
Earnings per share	Profit/loss for the period in SEK, divided by the average number of shares outstanding, basic/diluted calculated according to IAS 33.	Earnings per share is used to clarify the amount of profit for the period to which each share is entitled.
EBITDA	Operating profit/loss before depreciation/amortization and impairment of non-current assets.	EBITDA is used to measure profit (loss) from operating activities, regardless of depreciation/amortization.
EBITDA margin	EBITDA as a percentage of revenues.	EBITDA margin is used to set EBITDA in relation to sales.
Employee turnover	Average number of employees who left the company during the year in relation to the average number of employees. (Number of permanent and probationary employees who quit) / (Average number of permanent and probationary employees).	Employee turnover is used to measure the proportion of employees who leave the company and who must be replaced every year.
Equity/assets ratio	Equity as a percentage of total assets.	The equity ratio shows the proportion of the Company's total assets financed by shareholders' equity. A high equity ratio is a measure of financial strength.
Interest coverage ratio	Adjusted EBIT for the last 12 months plus financial income in relation to interest expense.	Interest coverage ratio is used to measure the company's ability to pay interest costs.
Net debt	Interest-bearing debt (current and non-current) net of cash and cash equivalents and non-current interest-bearing receivables (current and non-current).	Net debt is used to clarify the size of the debt less current cash and cash equivalents (which in theory could be used to repay loans).
Net debt/adjusted EBITDA	Net debt (closing balance for the period) divided by adjusted EBITDA for the past 12 months.	Net debt/adjusted EBITDA is a theoretical measure of how many years it would take, with current earnings (EBITDA), to pay off the Company's liabilities, including property-related loans.
Net margin	Profit/loss for the period as a percentage of revenues.	Net margin is used to measure net earnings in relation to sales.

³ According to ESMA guidelines on performance measures, each performance measure must be motivated.

Items affecting comparability	Items affecting comparability are items related to property such as capital gains, major property damage not covered by commercial insurance, consulting costs related to acquisitions, severance payments to senior executives, major integration costs resulting from acquisitions, reorganization costs, as well as costs arising from strategic decisions and major restructuring that results in winding up of units.	Items affecting comparability are used to identify items of an irregular nature in order to get a better understanding of underlying development of earnings.
Number of children/students	Average number of children/students enrolled during the specified period. Adult education participants are not included in the Group's total figures for number of children/students.	Number of children/students is the most important driver for revenue.
Number of education units	Refers to the number of preschools, compulsory schools and/or upper secondary schools operating in the period. Integrated units where preschools and compulsory schools are combined are counted as two units as they each hold their own permit.	Number of education units indicates how the Company grows over time through new establishments and acquisitions minus discontinued units.
Number of full-time employees	Average number of employees during the period, full-time equivalent (FTE).	The number of employees is measured regularly as it is the main cost driver for the Company.
Return on equity	Profit/loss for the most recent 12-month period divided by average equity (opening balance + closing balance)/2.	Return on equity is a profitability measure used to set profit (loss) in relation to shareholders' paid-in and earned capital.
Return on capital employed	Adjusted operating profit/loss (EBIT for the most recent 12-month period plus interest income divided by average capital employed (opening balance + closing balance)/2.	Return on equity is a profitability measure used to set profit (loss) in relation to the capital needed to run the business.
Operating margin (EBIT margin)	Operating profit/loss as a percentage of revenues.	The operating margin shows the percentage of sales remaining after operating expenses, which can be allocated to other purposes.
Operating profit/loss (EBIT)	Operating profit/loss before net financial items and tax.	Operating profit/loss (EBIT) is used to measure operating profit before financing and tax.

Other

All amounts in tables are in SEK million unless otherwise stated. All figures in parentheses () are comparative figures for the same period the previous year unless otherwise stated. Totals of amounts in whole figures do not always match reported totals due to rounding. The reported total amounts are correct.