AcadeMedia — Interim / Quarterly Report 2022

Aug 30, 2022

AcadeMedia AB (publ)

Interim report July 2021 – June ²⁰²²

Strong growth in the Preschool Segment with 16 new openings in Germany and an acquisition in the Netherlands Strengthened position in upper secondary schools with investments in new campuses and vocational education The Board proposes a dividend of 1.75 SEK (1.75) per share for the fiscal year 2021/22

Year-end report 2021/22

Fourth quarter (April – June 2022)

• Net sales increased by 4.9 percent and amounted to SEK 3,851 million (3,672). Organic growth, including bolt-on acquisitions, was 3.7 percent.
• Operating profit (EBIT) amounted to SEK 337 million (330).
• Adjusted operating profit, adjusted for items affecting comparability and effects of IFRS 16, amounted to SEK 279 million (281), in line with the preliminary result published on 20 July 2022. Items affecting comparability amounted to SEK -14 million (-14).
• Net profit for the period amounted to SEK 164 million (181).
• Diluted earnings per share was SEK 1.55 (1.70). Adjusted for IFRS 16, diluted earnings per share was SEK 1.77 (1.90).
• The average number of children and students in preschool, compulsory school, and upper secondary school during the fourth quarter was 93,308 (90,032), an increase of 3.6 percent.
• After the end of the reporting period, Academedia has entered a new loan agreement.

Full year (July 2021 – June 2022)

• Net sales increased by 7.5 percent to SEK 14,339 million (13,340). Organic growth, including bolt-on acquisitions, was 5.2 percent.
• Operating profit (EBIT) amounted to SEK 1,224 million (1,174).
• Operating profit, adjusted for items affecting comparability and effects of IFRS 16, amounted to SEK 1,001 million (939). Items affecting comparability amounted to SEK -64 million (-7).
• Net profit for the period amounted to SEK 605 million (599).
• Diluted earnings per share was SEK 5.72 (5.62). Adjusted for IFRS 16, diluted earnings per share was SEK 6.54 (6.52).
• The average number of children and students in preschool, compulsory school, and upper secondary school during year was 92,549 (87,823), representing an increase of 5.4 percent.
• The Board proposes dividend of 1.75 SEK (1.75) per share.

Fourth quarter summary

		Fourth quarter			Full year
SEK m	2021/22	2020/21	Change	2021/22	2020/21	Change
Net sales	3,851	3,672	4.9%	14,339	13,340	7.5%
Organic growth, %	3.7%	10.4%	-6.7 p.p.	5.2%	8.1%	-2.9 p.p.
Operating profit (EBIT)	337	330	2.1%	1,224	1,174	4.3%
EBIT margin, %	8.8%	9.0%	-0.2 p.p.	8.5%	8.8%	-0.3 p.p.
Adjusted EBIT1	279	281	-0.7%	1,001	939	6.6%
Adjusted EBIT margin, %	7.2%	7.7%	-0.5 p.p.	7.0%	7.0%	0.0 p.p.
Profit for the period	164	181	-9.4%	605	599	1.0%
Earnings per share, diluted (SEK)	1.55	1.70	-8.9%	5.72	5.62	1.7%
Free cash flow	397	341	16.4%	922	1,117	-17.5%
Number of children and students2	93,308	90,032	3.6%	92,549	87,823	5.4%
Number of FTEs	13,965	13,733	1.7%	13,815	13,360	3.4%

1 The key performance indicators Adjusted EBITDA and Adjusted operating profit (EBIT) are performance measures adjusted for items affecting comparability and with lease agreements reported as it was applied in previous accounting periods (IAS 17). This means that leases of real estate are recognised as rent and not as finance leases.

2Excl. adult education. See definitions on pages 33-34.

From our CEO

The 2021/22 financial year can be summarized as one of our strongest ever. The number of children and students in the school segments increased by 5.4 percent and net sales grew by 7.5 percent, even though the Adult Education Segment was affected by a return to more normal participant volumes. Organic sales growth during the year was just over 5 percent.

Operating profit in the fourth quarter remained stable and in line with last year despite lower participant volumes in the Adult Education Segment and lower profitability in our Norwegian preschool operations. Student numbers in the Compulsory and Upper Secondary School Segments continued to show good growth. After two years of the pandemic, over 100,000 parents and relatives of students at AcadeMedia schools were finally able to attend normal end-of-school celebrations. And never before have so many children and students celebrated this milestone with us. We are now summing up a year in which our business has developed well and the demand for our services has never been higher.

Investment in new campuses and vocational education

AcadeMedia has a leading position in upper secondary education. Our extensive investment and focus on vocational training and the breadth of our educational profiles have created a high level of attractiveness. In August, we celebrated the opening of two new campuses in Stockholm with room for over 4,000 students in state-of-the-art facilities. This unique venture, in the SEK billion class, was made possible by AcadeMedia's size.

Demand for places at our upper secondary schools remains high. With a strong and broad portfolio, we are well positioned to fill both our established and new upper secondary schools this autumn.

16 new units opened in Germany

The need and thus the demand for new preschool places in Germany is expected to remain high. During the year, we opened 16 new preschools, and decisions have been taken on 37 additional units, which will take us from the current 73 to 110 units within three years. Around 15 of these are planned for 2022/23. Decisions on further new establishments are taken on an ongoing basis.

We are also very pleased that during the quarter we added a fourth country, the Netherlands, to our map. Two preschools outside Rotterdam are the foundation for our continued expansion.

Economic cycles affect adult education

The strong demand for labour after the pandemic has affected adult education in the spring. Many students are gaining employment, which is positive, and we are now approaching normal participation levels in adult

education. Our operations have adjusted to the new levels during the spring, and we expect demand to remain stable this autumn. Rising inflation and interest rates could lead to a recession, which in turn would increase demand for adult education. We have a leading position in higher vocational education and the demand for vocational training remains high. We anticipate continued allocation of national resources to vocational education.

A leading educator in game development

After the end of the quarter, AcadeMedia entered into an agreement to acquire Futuregames, which is ranked as one of the best gaming education providers in the world. Together we will be the leading player in Sweden and probably the leading international player. With this acquisition, we have the opportunity for further international establishment, as Futuregames has a number of international initiatives. Creating different educational profiles with the foundation in our Swedish operations and then building on that internationally is one of the strategies that AcadeMedia is working on going forward.

Our highest admissions figures to date

Preliminary numbers for autumn 2022 show an overall average growth in student numbers of approximately five percent for our three school segments to approximately 96,000 (91,431) children and students. More than 16,000 of these are in the first year of upper secondary school. We look forward to following them all through their schooling.

The independent school sector is larger than ever

There has been a heated debate in Sweden about independent schools in connection with this year's election campaign. The independent school sector has grown large and affects many people. The proposals presented for decision in Parliament have been voted down as they have lacked majority. Swedish independent schools have contributed and will continue to contribute to development and with resources to the Swedish school system. At the same time, we agree that a new independent school reform needs to be put in place. Over the years, we have put forward several proposals to reform and develop the independent school sector for the future. The proposals include ideas on school choice and school vouchers.

As we sum up one of our strongest years ever, we would like to express our gratitude to our staff and also to all the parents who place their trust in us to educate their children for a better future.

Marcus Strömberg

President and CEO AcadeMedia AB (publ)

Development in the fourth quarter (April 2022 – June 2022)

The result is in line with the preliminary result published on 20 July 2022.

Volume development and net sales

Net sales in the fourth quarter increased by 4.9 percent to SEK 3,851 million (3,672). Organic growth, including bolt-on acquisitions, was 3.7 percent. Sales growth relating to acquisitions, Sandviks AS, amounted 0.4 percent and changes in exchange rates impacted sales by 0.8 percent. The average number of children and students, excluding the Adult Education Segment, increased by 3.6 percent to 93,308 (90,032).

Adjusted operating profit and operating profit (EBIT)

Adjusted EBIT was in line with last year and amounted to SEK 279 million (281) with an adjusted EBIT margin of 7.2 percent (7.7). Operating profit (EBIT) was SEK 337 million (330) with an EBIT margin of 8.8 percent (9.0). Continued lower profitability in Norway due to higher expenses and lower pension contribution and lower volumes in parts of the Adult Education Segment had a negative impact. AcadeMedia's higher vocational education continued to grow.

The Compulsory School and Upper Secondary School Segments continued to provide growth in number of students. Personnel expenses were lower than last year, partially an effect of employees taking more vacation days.

Group overhead expenses were somewhat higher than last year due to higher activity levels.

Items affecting comparability

Items affecting comparability amounted to SEK -14 million (-14) and relates to provision for lossmaking units in Preschool Norway and insurance compensation related to a fire in a compulsory school in July 2021.

	Fourth quarter
SEK m	2021/22	2020/21
Fire, insurance compensation (comp)	6	-
Provision for lossmaking units (pre. NO)	-21	-
Restructuring expenses (upp. sec)	-	-10
Integration expenses, Segab	-	-4
Total	-14	-14

Acquisitions, divestments, new establishments, and discontinued operation

Two preschools in the Netherlands were acquired and one new preschool in Germany opened in the quarter. In addition, the acquisition of Sandviks AS was completed in the quarter.

In the graph, the EBIT-margin is presented excl. IFRS 16.

	Number of students (average)			Net sales, SEK m		Adj. operating profit. (EBIT), SEK m		Adj. EBIT margin		Operating profit (EBIT), SEK m		EBIT margin
	2021/22	2020/21	2021/22	2020/21	2021/22	2020/21	2021/22	2020/21	2021/22	2020/21	2021/22	2020/21
Preschool	23,651	22,265	1,184	1,068	68	79	5.7%	7.4%	47	79	4.0%	7.4%
Compulsory School	28,052	27,374	954	888	80	63	8.4%	7.1%	86	63	9.0%	7.1%
Upper Secondary School	41,605	40,394	1,284	1,223	130	112	10.1%	9.2%	130	102	10.1%	8.3%
Adult Education	1 -	1 -	429	492	37	59	8.6%	12.0%	37	59	8.6%	12.0%
Group adj. Parent company	-	-	0	0	-35	-32	-	-	-35	-37	-	-
Impact from IFRS 162	-	-	-	-	-	-	-	-	72	63	-	-
Total	93,308	90,032	3,851	3,672	279	281	7.2%	7.7%	337	330	8.8%	9.0%

Fourth quarter in summary by segment

¹ Adult education volume is not measured by the number of participants as the length of the programmes varies from single occasions to academic years ² Please see note 2 for information on how application of IFRS 16 impact the financial reports.

Development for the full year (July 2021 – June 2022)

Volume development and net sales

Net sales increased by 7.5 percent to SEK 14,339 million (13,340). Organic growth, including bolt-on acquisitions, was 5.2 percent. Sales growth relating to acquisitions amounted 1.6 percent and include Sandviks AS (May 2022) and Swedish Education Group AB (Jan 2021). Exchange rate development impacted sales by 0.8 percent. The average number of children and students, excluding the Adult Education Segment, increased by 5.4 percent to 92,549 (87,823)

Adjusted operating profit and operating profit (EBIT)

Adjusted EBIT for the year increased to SEK 1,001 million (939) with an adjusted EBIT margin of 7.0 percent (7.0). Operating profit (EBIT) was SEK 1,224 million (1,174) with an EBIT margin of 8.5 percent (8.8). The increase in earnings was due to a higher number of children and students and, to some extent, lower expenses in the second and third quarter in the Swedish schools due to the pandemic.

In Germany, operations returned to normal capacity utilization after the pandemic, even though the fourth quarter was negatively affected by new openings. Preschool operations in Norway were affected by lower pension compensation but also by higher electricity costs and higher expenses for temporary staff, partly an effect of the pandemic.

Volumes in the Adult Education Segment, especially the Municipal Adult Education returned to more normalised levels, after a period with very high demand during the pandemic which resulted in decreased earnings and margins.

Group overhead expenses were higher compared to last year, due to higher activity levels.

Items affecting comparability

Items affecting comparability amounted to SEK -64 million (-7) and include VAT-expenses relating to subcontractors in the Adult Education Segment of SEK -11 million, restructuring expenses in the Upper Secondary School Segment of SEK -15 million, provision for lossmaking units in Preschool Norway SEK -21 million, as well as a fire in a compulsory school of net SEK -18 million. Delays in reconstructing the school resulted in higher expenses than previously reported. Insurance compensation is expected to cover a substantial part of the expenses.

	Full year
SEK m	2021/22	2020/21
Fire, insurance compensation (comp)	24	-
Fire (comp)	-42	-
VAT- (adult education)	-11	-
Provision for lossmaking units	-21	-
Restructuring expenses (upp. sec)	-15	-15
Integration expenses, Segab	-	-12
Acquisition-related expenses	-	-2
Retroactive revenue from previous years (Compulsory School)	-	3
Retroactive revenue from previous years (Upper Secondary School)	-	19
Total	-64	-7

Acquisitions, divestments, new establishments, and discontinued operation

Net, twenty new units were added during the fiscal year. One compulsory school and six preschools were acquired and nineteen new units opened of which three upper secondary schools and sixteen preschools in Germany. The number of units was negatively impacted by six from units merging, closing and the loss of a contract with Oslo municipality.

	Number of students (average)			Net sales, SEK m		Adj. operating profit. (EBIT), SEK m		Adj. EBIT margin		Operating profit (EBIT), SEK m		EBIT margin
	2021/22	2020/21	2021/22	2020/21	2021/22	2020/21	2021/22	2020/21	2021/22	2020/21	2021/22	2020/21
Preschool	22,413	21,447	4,180	3,800	163	176	3.9%	4.6%	142	176	3.4%	4.6%
Compulsory School	27,896	26,696	3,543	3,260	271	198	7.6%	6.1%	253	201	7.1%	6.2%
Upper Secondary School	42,240	39,680	4,807	4,424	450	398	9.4%	9.0%	435	402	9.0%	9.1%
Adult Education	1 -	1 -	1,804	1,850	214	255	11.9%	13.8%	203	255	11.3%	13.8%
Group adj. Parent company	-	-	4	6	-97	-89	-	-	-97	-103	-	-
Impact from IFRS 162	-	-	-	-	-	-	-	-	288	243
Total	92,549	87,823	14,339	13,340	1,001	939	7.0%	7.0%	1,224	1,174	8.5%	8.8%

Full year in summary by segment

¹ Adult education volume is not measured by the number of participants as the length of the programmes varies from single occasions to academic years

Cash flow and financial position

In the cash flow analysis below, lease payments attributable to property leasing are reported as part of operating activities. According to IFRS 16, lease payments are reported as part of the financing activities. Please see note 2 for reconciliation with the financial reports

Cash flow adjusted for lease payments

	Fourth quarter		Full year
SEK m	2021/22	2020/21	2021/22	2020/21
Cash flow from operating activities before changes in working capital	408	323	1,192	1,166
Cash flow from changes in working capital	109	112	33	191
Cash flow from operating activities	517	435	1,225	1,357
Investments related to existing operations1	-120	-94	-303	-241
Investments related to expansion2	-97	-34	-234	-196
Cash flow from investing activities	-217	-128	-536	-437
Cash flow from financing activities	-131	-95	-530	-487
CASH FLOW FOR THE PERIOD	169	213	158	433
Free cash flow3	397	341	922	1,117

Cash flow from operating activities for the fourth quarter amounted to SEK 517 million (435). The increase was due to a higher operating profit adjusted for items not included in the cashflow. The net working capital development was in line with last year SEK +109 (+112) million and the cash flow has no significant impact from calendar effects in the fourth quarter.

Investments in existing operations1 were higher compared to last year and amounted to SEK -120 million (-94), whereof SEK -44 million relates to investments in our new campus, contributing to a free cash flow3 of SEK 397 million (341). Expansion investments2 in the period were SEK -97 million (-34) and included the settlement for the acquisition of Sandviks AS in Norway (SEK -92 million). In total, cash flow from investing activities amounted to SEK -217 million (- 128). Cash flow from financing activities totalled SEK -131 million (-95). All in all, cash flow for the quarter amounted to SEK 169 million (213).

For the full year, cash flow from operating activities amounted to SEK 1,225 million (1,357). The decrease was due to a less positive net working capital development compared to last year, SEK 33 (191) million. The development of the net working capital compared to last year is primarily explained by higher prepaid income during 2020/21.

Investments in existing operations1 during the full year were higher compared to last year and amounted to SEK -303 million (-241) contributing to a free cash flow3 of SEK 922 million (1,117). Expansion investments2 in the period were SEK -234 million (-196) and included the settlements for the acquisition in the Netherlands and Sandviks AS (SEK -123 million). Last year was affected by SEK -171 million from the acquisition of Swedish Education Group and by SEK +62 million from the sales proceeds received originating from the divestment of one property in Oslo. In total, cash flow from investing activities amounted to SEK -536 million (-437). Cash flow from financing activities totalled SEK -530 million (- 487) of which dividend to shareholders SEK -183 million (-158). All in all, cash flow from the 2021/22 fiscal year amounted to SEK 158 million (433).

¹ Investments related to existing operations include leasehold improvements, investments in equipment, investments in intangible non-current assets, investments in non-current financial assets, and divestment of non-current financial assets.

² Expansion investments include acquisitions, investments in associated companies, and investments in own preschool buildings in Norway, as well as divestments of such assets.

³ Free cash flow before expansion investments consists of the cash flow from operating activities less investments in existing operations.

Financial position1

SEK m	2022-06-30	2021-06-30
Equity/asset-ratio (%) (excluding IFRS 16)	55.3%	53.3%
Net debt (inclusive of IFRS 16)	9,460	8,650
Property-related leasing liabilities	8,474	7,428
Net debt (excluding IFRS 16)	987	1,222
Net debt (excluding IFRS 16)/ adjusted EBITDA	0.7	0.9
Buildings2	1,057	1,044

Consolidated interest-bearing net debt including property-related leasing liabilities amounted to SEK 9,460 million (8,650), of which property-related leasing liabilities amounts to SEK 8,474 million (7,428). For the full year, financial expenses increased to SEK 441 million (405) following increased leasing liabilities. Interest expenses related to propertyrelated leasing liabilities amounted to SEK 401 million (365).

Consolidated interest-bearing net debt1 excluding property-related leasing liabilities amounted to SEK 987 million (1,222) as of 30 June 2022. The decline in net debt over the past 12 months is due to positive cash flows following strong operating results.

The property loans, consisting of both non-current loans in the Norwegian State Housing Bank (Norw. Husbanken) and short-term construction loans, have, increased by SEK 54 million over the past 12 months to SEK 750 million (696). Excluding the currency effects of a stronger Norwegian krona, the property loans increased by SEK 27 million. Buildings increased by SEK 13 million to SEK 1,057 million (1,044) during the equivalent period.

Net debt in relation to adjusted EBITDA1 (rolling 12 months) amounted to 0.7 (0.9), which meets the Group's financial target of a net debt in relation to adjusted EBITDA lower than 3.0. Property-adjusted net debt divided by adjusted EBITDA1 (12m) was 0.2 (0.4).

After the end of the reporting period, Academedia has entered a new loan agreement with DNB and SEB to refinance existing loans to an amount of SEK 1,650 million until the middle of 2025 with the possibility to extend until 2027. Annual amortization will decrease by SEK 34 million which will positively impact cash flow.

Impairment test

During the fourth quarter, an impairment test regarding goodwill and other intangible assets with indefinite life was performed on the group's cash generating units based on long term business plans. All cash generating units had a recoverable amount exceeding its book value. Therefore, no impairment of goodwill was reported. For more information on significant assessments and assumptions, see Note 1 on page 20.

² As of 30 June 2022, AcadeMedia owns 41 preschool properties in Norway, which are funded by long-term liabilities in the Norwegian State Housing Bank and short-term construction loans.

¹ Implementation of IFRS 16 had a significant effect on AcadeMedia's financial statements. By excluding the effects of IFRS 16, continuity is achieved in the KPIs above. See pages 33-34 for definitions.

Preschool

• The number of children increased by 6.2 percent to 23,651 (22,265) in the fourth quarter.
• Sales increased by 10.9 percent to SEK 1,184 million (1,068), positively affected by currency changes and acquisition. The organic growth was 6.7 percent.
• Adjusted operating profit (adj. EBIT) decreased to SEK 68 million (79).

AcadeMedia's Preschool segment runs preschools in Sweden, Norway, Germany and Netherlands, and educational services through Sandviks AS. In Sweden, business is conducted in many municipalities with a total of 110 units. In Norway, Espira is the third largest preschool provider with 107 units. In Germany and Netherlands, we operate 73 and 2 preschools respectively. The segment had a total of 292 units during the quarter

Outcome for the fourth quarter

The average number of children increased by 6.2 percent compared with the previous year and amounted to 23,651 (22,265). The increase was mainly driven by new establishments in Germany, but also from acquisitions and growth in existing units in Sweden. The acquisition of two preschools in The Netherlands contributed with 233 children.

Sales increased by 10.9 percent and amounted to SEK 1,184 million (1,068). Positive currency effects, SEK 27 million, contributed 2.7 percent and the acquisition of Sandviks AS 1.4 percent to the growth. The organic growth was 6.7 percent. Lower pension compensation amounted to SEK 8 million in the fourth quarter.

Adjusted operating profit (EBIT) decreased to SEK 68 million (79) with a margin of 5.7 percent (7.4). The decrease in profit and margin were mainly related to the Norwegian business and relates to higher salary expenses and lower pension supplement, totally SEK 13 million, and higher electricity costs and increased expenses for temporary staff, about SEK 8 million.

In Germany, capacity utilization was lower than the previous year affected by new openings starting later in the year and therefore not been able to fully enrol children. In Sweden, personnel costs were slightly lower than the previous year, partially affected by more employee vacation days. Items affecting comparability amounted to SEK -21 million (-) relates to provision for

lossmaking units in Norway. Operating profit (EBIT) amounted to SEK 47 million (79), and the operating margin was 4.0 percent (7.4).

Outcome for the year

The average number of children increased by 4.5 percent and amounted to 22,413 (21,447). Net sales increased by 10.0 percent and amounted to SEK 4,180 million (3,800). Adjusted for positive currency effects of SEK 96 million and the acquisition of Sandviks AS of SEK 15 million, net sales increased by 6.9 percent.

Operating profit (EBIT) for the year was SEK 163 million (176), with an operating margin of 3.9 percent (4.6). The decrease in profit and margin were related to Norway and higher salary expenses, SEK 20 million, lower pension supplement, SEK 17 million, as well as higher electricity costs and increased expenses for temporary staff, about SEK 23 million. Return to normal operation in Germany and lower personnel expenses in Sweden, in part an effect of staff planning but also a result of high absence due to the pandemic, mitigated the effect.

Items affecting comparability amounted to SEK -21 million (-) relates to provision for lossmaking units in preschool Norway. Operating profit (EBIT) amounted to SEK 142 million (176), and the operating margin was 3.4 percent (4.6).

Operational changes

During the fourth quarter two preschools in the Netherlands were acquired and one new unit in Germany opened. During the full year, net 19 units were added. Sandviks AS was acquired in the fourth quarter. For the fiscal year 2022/23, the plan is to open 15 new units in Germany and one unit in Sweden.

Financial overview1

Preschool		Fourth quarter			Full year
SEK m	2021/22	2020/21	Change	2021/22	2020/21	Change
Net sales	1,184	1,068	10.9%	4,180	3,800	10.0%
Operating profit (EBIT)	47	79	-40.5%	142	176	-19.3%
EBIT margin, %	4.0%	7.4%	-3.4 p.p.	3.4%	4.6%	-1.2 p.p.
Items affecting comparability	-21	-	n.a.	-21	-	n.a.
Adjusted operating profit	68	79	-13.9%	163	176	-7.4%
Adjusted EBIT margin, %	5.7%	7.4%	-1.7 p.p.	3.9%	4.6%	-0.7 p.p.
Number of children and students	23,651	22,265	6.2%	22,413	21,447	4.5%
Number of units	292	273	7.0%	286	269	6.3%

The segments report property leasing in accordance with previous accounting practice (IAS 17). This entails that property lease payments are recognised

as rent and not as finance lease. 1 Additional financial information per segment is presented on pages 29-30.

Compulsory School

• The number of students increased by 2.5 percent to 28,052 (27,374) in the fourth quarter.
• Sales increased by 7.4 percent to SEK 954 million (888).
• Adjusted operating profit (EBIT) increased to SEK 80 million (63).

AcadeMedia's Compulsory School segment runs compulsory schools and integrated preschools in many municipalities in Sweden under the brands Innovitaskolorna, Montessori Mondial, Noblaskolorna, Pops Academy, Snitz, and Vittra. Operations are based entirely on the school voucher system. The segment had 116 units during the quarter, whereof 38 integrated preschools.

Outcome for the fourth quarter

The average number of students increased by 2.5 percent compared with the previous year and amounted to 28,052 (27,374). The increase related mainly to growth in existing units but also bolt-on acquisitions.

Net sales increased by 7.4 percent and amounted to SEK 954 million (888). In addition to more students, the increase was also due to the annual adjustment of school vouchers and increased government subsidies. Retroactive adjustment of school voucher and subsidies, with costs taken in previous periods, amounted to about SEK 10 million in the quarter and contributed to the increase.

Adjusted operating profit was SEK 80 million (63) with a margin of 8.4 percent (7.1). Operating profit and margin were affected by more students and somewhat lower personnel expenses of SEK 5 million, partially due to employees taking more vacation days compared to last year.

Items affecting comparability amounted to SEK 6 million (-) and relates to a fire in July 2021. Operating income (EBIT) was higher than last year and amounted to SEK 86 million (63), corresponding to an EBIT-margin of 9.0 percent (7.1).

Outcome for the year

The average number of students increased by 4.5 percent and amounted to 27,896 (26,696). Net sales increased by 8.7 percent and amounted to SEK 3,543 million (3,260) following the volume increase but also

the annual adjustment of school vouchers and increased government grants.

Adjusted operating profit was higher than last year, SEK 271 million (198), positively affected by more students, and lower personnel cost due to increased absence in the second and third quarter combined with limited availability of temporary staff. Employees taking more vacation days during the year decreased personnel costs by approximately SEK 10 million compared to last year.

Items affecting comparability amounted to SEK -18 million (30) and include insurance compensation and expenses following a fire in a compulsory school. Additional compensation is expected in the coming quarters, which will largely cover the costs. Operating profit (EBIT) amounted to SEK 253 million (201), and the operating margin was 7.1 percent (6.2).

Operational changes

No changes in the unit portfolio in the quarter. One compulsory school is merged with an existing nearby school at the start of the autumn term. All students are offered a place at the nearby school. A new compulsory school within the Vittra brand will start in Örebro in August 2022. The changes will take place in the first quarter of 2022/23.

The Compulsory School segment has strategically worked to bring units with similar pedagogies and governance together under common education profiles. Innovitaskolorna was launched in October 2021. This means that AcadeMedia's compulsory schools are now mainly run under the brands Innovitaskolorna, Pops Academy, Noblaskolorna, Montessori Mondial, and Vittra.

Financial overview¹

		Fourth quarter			Full year
SEK m	2021/22	2020/21	Change	2021/22	2020/21	Change
Net sales	954	888	7.4%	3,543	3,260	8.7%
Operating profit (EBIT)	86	63	36.5%	253	201	25.9%
EBIT margin, %	9.0%	7.1%	1.9 p.p.	7.1%	6.2%	0.9 p.p.
Items affecting comparability	6	-	n.a.	-18	3	n.a.
Adjusted operating profit	80	63	27.0%	271	198	36.9%
Adjusted EBIT margin, %	8.4%	7.1%	1.3 p.p.	7.6%	6.1%	1.5 p.p.
Number of children and students	28,052	27,374	2.5%	27,896	26,696	4.5%
Number of units	116	116	-	116	114	1.8%

The segments report property leasing in accordance with previous accounting practice (IAS 17). This entails that property lease payments are recognised as rent and not as finance lease.

¹ Additional financial information per segment is presented on pages 29-30.

Upper Secondary School

• The number of students increased by 3.0 percent in the fourth quarter, amounting to 41,605 (40,394).
• Sales increased 5.0 percent to SEK 1,284 million (1,223).
• Adjusted operating profit amounted to SEK 130 million (112).

AcadeMedia's Upper Secondary School Segment provides upper secondary education all over Sweden under 16 different brands, offering both academic and vocational programmes. The schools operate entirely based on the school voucher system. The segment had 151 units during the quarter.

Outcome for the fourth quarter

The number of students increased by 3.0 percent compared with the previous year, to 41,605 (40,394). The growth was mainly attributable to the 21 new units that have opened since 2017, of which three opened at the beginning of the fiscal year, enrolling new students. Together, these 21 new units have admitted about 1,100 additional students compared to last year.

Net sales increased by 5.0 percent to SEK 1,284 million (1,223). In addition to increased student enrolment, the growth was also attributable to the annual school voucher revision and higher government grants with corresponding costs.

Adjusted operating profit was SEK 130 million (112), representing a margin of 10.1 percent (9.2). Operating income and margin were affected by a higher number of students and lower personnel expenses of SEK 10 million partially due to employees taking more vacation days compared to last year.

The fourth quarter includes costs related to the autumn's two new campuses opening in Stockholm, approximately SEK 5 million. Last year, some activities were postponed until the fourth quarter due to distance learning in previous quarters. We do not see the same pattern this year as the teaching mainly has been conducted in the classroom.

Operating profit (EBIT) increased and amounted to SEK 130 million (102) and the margin was 10.1 percent (8.3).

Outcome for the year

The number of students increased by 6.5 percent amounting to 42,240 (39,680) and net sales increased by 8.7 percent to SEK 4,807 million (4,424). The growth was attributable to new openings, acquisitions, and higher school vouchers.

Adjusted operating profit was SEK 450 million (398), representing a margin of 9.4 percent (9.0). Result and margin were mainly affected by higher number of students, but also by lower personnel costs in the second and third quarter due to increased absence with limited availability of temporary staff. Employees taking more vacation days during the year decreased personnel costs by approximately SEK 15 million compared to last year.

Items affecting comparability amounted to SEK -15 million (4). Operating profit (EBIT) was SEK 435 million (402) and the margin was 9.0 percent (9.1).

Operational changes

Three new schools, in Gothenburg and Stockholm, will open in the autumn 2022. Our two new Stockholm campuses, where eight existing schools move to, open in the autumn. In total, approximately 2,500 new educational places are created, to be filled in the coming years. Investments in the campuses will, similar to a new start, have a negative impact on the margin during the next two years.

Financial overview1		Fourth quarter		Full year
SEK m	2021/22	2020/21	Change	2021/22	2020/21	Change
Net sales	1,284	1,223	5.0%	4,807	4,424	8.7%
Operating profit (EBIT)	130	102	27.5%	435	402	8.2%
EBIT margin, %	10.1%	8.3%	1.8 p.p.	9.0%	9.1%	-0.1 p.p.
Items affecting comparability	0	-10	n.a.	-15	4	n.a.
Adjusted operating profit	130	112	16.1%	450	398	13.1%
Adjusted EBIT margin, %	10.1%	9.2%	0.9 p.p.	9.4%	9.0%	0.4 p.p.
Number of children and students	41,605	40,394	3.0%	42,240	39,680	6.5%
Number of units	151	150	0.7%	151	148	2.0%

The segments report property leasing in accordance with previous accounting practice (IAS 17). This entails that property lease payments are recognised as rent and not as finance lease.

¹ Additional financial information per segment is presented on pages 29-30.

Adult Education

• Sales decreased 12.8 percent to SEK 429 million (492) in the fourth quarter.
• Operating profit (EBIT) was SEK 37 million (59).

AcadeMedia's Adult Education Segment is Sweden's largest provider of adult education with a presence in about 150 locations in the country. The segment works in three main customer groups: Municipal Adult Education (54 percent of sales), Higher Vocational Education (35) and Labour Market Services (6).

Outcome for the fourth quarter

Net sales decreased by 12.8 percent and amounted to SEK 429 million (492). The decrease is attributable to Labour Market Services and Municipal Adult Education but was somewhat mitigated by a strong Higher Vocational Education.

AcadeMedia HVE increased net sales by 15 percent compared to last year. Capacity utilization continued to be good, but the number of students leaving before completed education is rising, an effect of the stronger labour market.

Volume in the Municipal Adult Education continues to return to more normal levels and net sales declined 19 percent compared to last year. As a result of reduced immigration, the SFI-operation (Swedish for immigrants) and Basic Vocational Education (GRUV), continue to have fewer participants, resulting in lower profitability and operating income. The SFI-operation in Stockholm is adjusting its capacity to the changed demand. The transition is expected to be completed at the beginning of the next financial year.

The conscious choice to reduce exposure to the Labor Market Services business resulted in 55 percent net sales decreased compared to last year. The expiring contracts, STOM and Vocational Swedish, account for 95 percent of this decline. The expected volumes in the new matching contracts (KROM) are still not met.

Adjusted operating profit decreased to SEK 37 million (59). The lower earnings were mainly related to

declining volumes in the Municipal Adult Education business, but also to some extent to the contract transition in the Labour Market Services business. The margin was 8.6 percent (12.0)

Outcome for the year

Net sales decreased by 2.5 percent to SEK 1,804 million (1,850). Adjusted operating profit was SEK 214 million (255), corresponding to a margin of 11.9 percent (13.8). Operating profit decreased to SEK 203 million (255), impacted by SEK 11 million in VAT-costs in the second quarter following a change to VAT rules. As of 1 January 2022, renumeration include compensation for VAT. The margin was 11.3 percent (13.8).

Operational changes and market development

The labour market has developed positively and the number of unemployed registered with the Swedish Public Employment Services has decreased to pre pandemic levels. However, unemployment continues to be high in Sweden with vast shortage of skilled labour in many industries. Going forward, Academedia will continue to reduce exposure towards the Labour Market Services business and continue the expansion within educations with focus on professions with shortage of skilled labour within HVE market and municipal adult education.

After the end of the reporting period, AcadeMedia acquired the game education company Futuregames and thus continue the expansion in game education.

Financial overview1

		Fourth quarter		Full year
SEK m	2021/22	2020/21	Change	2021/22	2020/21	Change
Net sales	429	492	-12.8%	1,804	1,850	-2.5%
Operating profit (EBIT)	37	59	-37.3%	203	255	-20.4%
EBIT margin, %	8.6%	12.0%	-3.4 p.p.	11.3%	13.8%	-2.5 p.p.
Items affecting comparability	-	-	n.a.	-11	-	n.a.
Adjusted operating profit	37	59	-37.3%	214	255	-16.1%
Adjusted EBIT margin, %	8.6%	12.0%	-3.4 p.p.	11.9%	13.8%	-1.9 p.p.

The segments report property leasing in accordance with previous accounting practice (IAS 17). This entails that property lease payments are recognised as rent and not as finance lease.

¹ Additional financial information per segment is presented on pages 29-30.

Quality

AcadeMedia's vision is to lead the development of education for the future. One of our goals in achieving this is to be a leader in learning, where the main indicator is '100% – everyone should achieve their educational objectives'. We can only accomplish this by providing the highest quality education in the areas in which the Group operates. To attain our goal, AcadeMedia maintains strong focus on systematic quality enhancing work. We have a group-wide quality management model, and our size enables us to pursue development initiatives and find ways for the structured exchange of experiences on a large scale. We are constantly developing as a learning organisation.

Ongoing analysis of the year's quality results

Aggregate analyses of the past academic year's quality results are ongoing and will be presented in the quality reports prepared at unit and principal organiser level as well as in AcadeMedias annual quality report. AcadeMedia's annual and sustainability report for the 2021/22 fiscal year will be published on 25 October 2022.

Employees

The average number of full-time employees in the quarter was 13,965 (13,733) which represents an increase of 1.7 percent. The proportion of women in the Swedish operation was 67.0 percent (67.0) in the quarter. Employee turnover in Sweden, measured as the proportion of individuals who resigned, was 17.8 percent aggregated over the year July - June period, compared with 15.0 percent aggregated over the corresponding period in the previous year. Absence due to illness for AcadeMedia employees in Sweden (aggregated average short-term absence <90 days) was 5.1 percent (4.7) during the year.

Absence due to care of sick child (se. VAB) in the Swedish operations during the period April to June was somewhat higher compared to the same period last year, 1.3 percent (1.2). Over the full year (aggregated average), absence due to VAB amounted to 1.4 percent (1.1).

Parent Company

Net sales during the year amounted to SEK 7 million (8). Operating profit (EBIT) amounted to SEK -17 million (-14) and profit after tax was SEK 7 million (11). The Parent Company's assets essentially consist of participations in Group companies and intercompany receivables. Operations are funded by equity, bank loans, and intra group loans. Equity in the Parent Company as of 30 June 2022 was SEK 2,418 million (2,593). The Parent Company's interest-bearing external debt as of 30 June 2022 was SEK 658 million (803).

Owners and share capital

AcadeMedia AB (publ) is a public limited company listed on Nasdaq Stockholm since 2016. As of 30 June 2022, share capital was SEK 105,792,878 and the number of shares amounted to a total of 105,792,878 shares distributed among 105,586,973 ordinary shares and 205,905 Class C shares, where the C-shares are held by AcadeMedia AB. The quota value is SEK 1.00 per share. Mellby Gård AB is the largest shareholder in AcadeMedia with 22.83 percent of the capital as of 30 June 2022.

In March 2022, the number of shares and votes in AcadeMedia AB increased through conversion of convertible bonds relating to the convertible program for employees within the AcadeMedia group, adopted at the Annual General Meeting on 22 November 2018. In total, the number of shares and votes has increased by 4,033 ordinary shares and as many votes.

During the third quarter the two incentive programs decided on the Annual General Meeting on 30 November 2021 were launched. Warrant program 2021/2025 and share matching program 2021/2025. For further information refer to the notice convening the Annual General Meeting in AcadeMedia AB (publ) 2021, note 17.

Significant events after the end of the reporting period

AcadeMedia signs a new loan agreement. AcadeMedia has signed a new loan agreement with DNB and SEB to refinance existing loans to an amount of SEK 1,650 million until the middle of 2025 with the possibility to extend until 2027. Annual amortization will decrease by SEK 34 million which will positively impact cash flow.

AcadeMedia acquires Changemaker Educations AB. AcadeMedia has entered into an agreement to acquire all shares in Changemaker Education AB for SEK 60 million. The company, which run Futuregames, has consistently ranked as one of the best game educations in the world for the past 25 years. AcadeMedia already run game educations through The Game Assembly. With the acquisition, AcadeMedia continue the expansion within game education. Changemaker Educations AB had a turnover in 2021 of approximately SEK 64 million and an EBIT of approximately SEK 10 million. The company has a clear international expansion plan. The acquisition is expected to be completed during the first quarter of the 2022/23 fiscal year and will be included in the Adult Education Segment.

Håkan Sörman proposed as new Chairman and Mikael Helmerson as a new member of the Board of Directors of AcadeMedia. The Nomination Committee of AcadeMedia will propose that Håkan Sörman, member of AcadeMedia's Board since 2017, shall be elected as new Chairman and Mikael Helmerson as a new member of the Board at AcadeMedia's Annual General Meeting on 30 November 2022. Anders Bülow has announced that he declines reelection. The Nomination Committee's complete proposal to the AGM 2022 will be presented in the notice to attend the AGM.

Publication of preliminary results for the fourth quarter 2021/22. On Wednesday 20 July, AcadeMedia published the group's preliminary results for the fourth quarter 2021/22. The actual result, published in this report, was in line with the preliminary result.

Changes in Group management

Veronica Rörsgård, head of the Swedish preschools will leave AcadeMedia for a new assignment outside the company. Her last day will be September 1st, 2022, a successor will be announced as soon as possible. Kristofer Hammar, Director of business development and a member of the executive management team, has assumed the position of acting Head of the Preschool Segment.

On August 15th, Karl Sandlund assumed the role of COO at AcadeMedia. This is a new position at AcadeMedia, and Karl Sandlund is a member of the executive management team.

Other

Risks and uncertainties

AcadeMedia categorises risks as operating, external, and financial and they are described in detail in AcadeMedia AB's 2020/21 Annual Report. Operating risks include variations in demand and number of students and participants, risk relating to the supply of qualified employees and payroll expenses, risk relating to quality deficiencies, contractual compliance within adult education, AcadeMedia's reputation and brand, permits, and liability and property risk. With declining demand in a specific unit, fixed expenses and thus rental costs are a risk.

External risks include risks relating to school voucher funding and the general economy, political risk, changes in laws or regulations as well as the dependence on national authorities in the education sector. A common factor for various political proposals is that the processes are usually long, and proposals must be in a legally enforceable format and must ultimately be approved by the respective national parliament. In addition, there are financial risks such as credit and currency risks.

In the spring, the Swedish Parliament voted on several proposals put forward by the social democrat led government. These included changes to the financing system (school voucher funding) and the free school choice, both relating only to compulsory school. The proposals were voted down. During the spring and summer, the right-wing parties also opened up to investigate system changes. The risk that political proposals concerning the Swedish independent schools are put forward and will materialize, is deemed to be higher than last year. A change in the school funding system with reduced school voucher fees would have a negative impact on the business and its financial results.

The rising inflation and higher interest rates can lead to a recession which in turn can increase demand for adult education. Higher costs for electricity, rents, and school meal expenses impacts AcadeMedias expenses, but over a longer time period higher expenses are reflected in higher school vouchers.

Seasonal variations

AcadeMedia's four segments show different seasonal variations. The three school segments show recurring seasonal variations, in which the first half of the year, July to December, typically reports weaker sales and earnings. This is mainly due to school holidays, annual leave and the annual salary review. The second half, January to June, is stronger, as sales typically rise because of the annual school voucher funding reviews and higher numbers of children and students. The Adult education segment shows more irregular seasonal variations. However, with a stable portfolio of contracts, the fourth and first quarters are typically weaker, while the second and third quarters are stronger due to the distribution of training days over the year. However, the seasonal variations in the Adult Education segment may show sharp deviations from this pattern in the event of major contractual changes or changes in public initiatives. The seasonal variations are described in more detail in Academedia AB's annual report for 2020/21.

Also, Covid-19 have had a significant impact on our operations and so 2019/20 and 2020/21 were untypical years. Earning was affected mainly by lower expenses in the second and third quarter due to cancelled and postponed activities, but also by high levels of sick leave and a substantial increase of absence due to caring for own sick child (se. vab), at the same time as access to temporary staff has been limited. During last year, the spread of the corona virus decreased in the fourth quarter and previous postponed activities was taking place to a larger extent.

Outlook

AcadeMedia does not publish any forecasts.

Dividend proposed

Aligned with AcadeMedia's dividend policy the Board of Directors proposes an ordinary dividend of SEK 1.75 per share (1.75) for the fiscal year 2021/22. This corresponds to SEK 185 million (185), 27 percent (27) of the profit for the period excluding IFRS 16.

Annual General Meeting 2022

AcadeMedia's Annual General Meeting 2022 will take place on Wednesday, November 30, 2022, in Stockholm.

Shareholders who want a matter brought before the Annual General Meeting 2022 can do so by e-mail to bolagsstamma@academedia.se. Proposals shall be submitted to the company no later than 12 October 2022, to give the company time to include the matter in the notice and the agenda for the Annual General Meeting.

Shareholders who wish to submit proposals to the Nomination Committee for the Annual General Meeting 2022 can do so by sending an e-mail to valberedning@academedia.se. Proposals should be submitted to the Nomination Committee no later than 12 October 2022 to ensure time for the Nomination committee to take the proposal into consideration.

Calendar

30 August 2022	Year-end report
25 October 2022	Interim report, first quarter
25 October 2022	Annual report 2021/22
30 November 2022	Annual General Meeting 2022

For further information, please visit https://academedia.se/en/investors/

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

Stockholm 30 August 2022

Marcus Strömberg Chief Executive Officer

AcadeMedia AB (publ)

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

www.academedia.se

For more information, please contact:

Marcus Strömberg, President and CEO Telephone: +46-8-794 42 00 E-mail: marcus.stromberg@academedia.se Katarina Wilson, CFO Telephone: +46-8-794 42 91 E-mail: katarina.wilson@academedia.se

This information is information that AcadeMedia AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 CEST on 30 August 2022.

Consolidated income statement

	Fourth quarter		Full year
Note SEK m	2021/22	2020/21	2021/22	2020/21
3 Net Sales	3,851	3,672	14,339	13,340
Cost of services	-321	-315	-1,274	-1,120
Other external expenses	-432	-408	-1,373	-1,352
Personnel expenses	-2,296	-2,193	-8,648	-8,106
Depreciation/amortization	-450	-411	-1,755	-1,580
Items affecting comparability 1)	-14	-14	-64	-7
TOTAL OPERATING EXPENSES	-3,514	-3,341	-13,115	-12,166
OPERATING INCOME	337	330	1,224	1,174
Financial income	0	0	1	3
Financial expenses 6	-114	-100	-441	-405
Net financial items	-114	-100	-441	-402
INCOME BEFORE TAX	223	231	784	772
Tax 8	-59	-50	-179	-173
PROFIT FOR THE PERIOD	164	181	605	599
Profit for the period attributable to:
Owners of the parent company	164	181	605	599
Basic earnings per share (SEK)	1.55	1.71	5.73	5.64
Diluted earnings per share (SEK)	1.55	1.70	5.72	5.62
Earnings per share based on number of shares outstanding (SEK)	1.55	1.70	5.73	5.62

¹ Items affecting comparability are specified on page 4 and 5. Key performance indicator definitions are on pages 33-34. Please see note 2 for information on how application of IFRS 16 impact the financial reports.

		Fourth quarter	Full year
Not MSEK	2021/22	2020/21	2021/22	2020/21
PROFIT FOR THE PERIOD	164	181	605	599
Other comprehensive income
Items that will not be reclassified to profit/loss
Actuarial gains and losses1	-40	-5	-6	55
Deferred tax relating to actuarial gains and losses	9	1	1	-12
	-32	-4	-4	43
Items that may be reclassified to profit/loss
Translation differences	-22	-19	35	14
Other comprehensive income for the period	-54	-23	31	57
COMPREHENSIVE INCOME FOR THE PERIOD	110	158	636	656
Comprehensive income for the period attributable to:
Owners of the parent company	110	158	636	656

Consolidated statement of comprehensive income

1. In the fourth quarter, actuarial losses of SEK -40 million are reported, relating to effects from asset ceiling. The value of plan assets in AcadeMedia's pension plans exceeded the value of pension obligations at the end of the financial year. Since AcadeMedia cannot use the surplus in the form of refunds or reductions in future contributions to the plan, the surplus may not be reported as an asset in the balance sheet. The surplus is considered as a contingent asset.

Consolidated statement of financial position in summary

SEK m Not	30 June 2022	30 June 2021
ASSETS
Intangible non-current assets	6,597	6,409
Buildings	1,057	1,044
Right-of-use assets	8,367	7,489
Other property, plant, and equipment	924	791
Other non-current assets	79	41
Total non-current assets	17,024	15,773
Current receivables	704	662
Cash and cash equivalents1	1,137	966
Total current assets	1,840	1,628
TOTAL ASSETS	18,864	17,401
EQUITY AND LIABILITIES
Total equity	5,758	5,305
Non-current liabilities to credit institutions2	722	1,824
Long-term lease liabilities	7,464	6,495
Provisions and other non-current liabilities	212	187
Total non-current liabilities	8,397	8,506
Current interest-bearing liabilities	1,207	195
Short-term lease liabilities2	1,180	1,077
Other current liabilities	2,323	2,319
Total current liabilities	4,709	3,591
TOTAL EQUITY AND LIABILITIES	18,864	17,401

¹ Cash includes Cash restricted for payroll tax withholdings with SEK 37 million (SEK 34 million per 30 June 2021).

² During the fourth quarter, Academedia entered a new loan agreement to refinance existing loans, excluding the property loans. The agreement came into force July 2022. Consequently, the loans that are to be refinance are on 30 June 2022 classified as short term.

Summary of consolidated statement of changes in equity

Equity attributable to the owners of the Parent Company

	July – June	July - June
SEK m	2021/22	2020/21
Opening shareholders equity in accordance with Approved balance sheet	5,305	4,807
Effect of amended accounting policies**	-	-17
Opening balance	5,305	4,790
Profit for the period	605	599
Other comprehensive income for the period	31	57
Consolidated statement of comprehensive income	635	655
Dividend paid	-185	-158
Other transactions with owners1	2	17
Closing balance	5,758	5,305

*) Transactions with owners include a new share issue connected to the convertible program for employees SEK +0,2 million and premium for issued warrants of SEK +2,1 million in the fourth quarter. Transactions with owners in the previous year includes new share issue connected to warrants SEK +17,1 million in the third and fourth quarter and share-matching program of SEK +0.2 million.

**) New and amended accounting standards is applied, see note 1 on page 20

Consolidated cash flow statement

	Fourth quarter		Full year
SEK m	2021/22	2020/21	2021/22	2020/21
Operating profit (EBIT)	337	330	1,224	1,174
Depreciation/amortization	450	411	1,755	1,580
Adjustment for other non-cash items	62	-4	37	24
Tax paid	-22	-33	-179	-146
Cash flow from operating activities before changes in working capital	828	705	2,838	2,632
Cash flow from changes in working capital	76	125	-7	240
Cash flow from operating activities	904	829	2,831	2,872
Acquisition of subsidiaries	-128	-36	-181	-235
Investments in buildings	0	2	-20	-23
Leasehold improvements	-69	-55	-148	-107
Investments in equipment	-49	-41	-152	-128
Investments in intangible non-current assets	-2	-1	-2	-3
Divestment of tangible non-current assets	-	-	-	62
Investments in non-current financial assets	31	-	-33	-7
Divestment of non-current financial assets	-	3	-	3
Cash flow from investing activities	-217	-128	-536	-437
Interest received (+) and paid (-)	-10	-8	-33	-31
Interest paid, lease liabilities	-102	-91	-404	-368
Dividend paid	-	-	-185	-158
New share issue	-	16	-	17
Premium for issued warrants	-	-	2	-
Increase (+)/decrease (-) of interest-bearing liabilities	-85	-70	-171	-182
Repayment of lease liabilities	-322	-336	-1,346	-1,281
Cash flow from financing activities	-518	-489	-2,136	-2,003
CASH FLOW FOR THE PERIOD	169	213	158	433
Cash and cash equivalents at beginning of period	976	760	966	528
Exchange-rate differences in cash and cash equivalents	-9	-6	12	5
Cash and cash equivalents at end of period	1,137	966	1,137	966

Please see note 2 for information on how application of IFRS 16 impact the financial reports.

Notes and accounting policies

The interim report includes pages 1 to 34 and pages 1 to 15 are an integrated part of this financial report.

NOTE 1: ACCOUNTING POLICIES

This Interim Report for the Group is prepared in accordance with IAS 34 Interim Financial Reporting, as well as applicable stipulations in the Annual Accounts Act. The Interim report for the Parent Company is prepared in accordance with chapter 9 Interim report in the Annual Accounts Act.

The accounting policies and basis of calculation applied are the same as those described in AcadeMedia's 2020/21 Annual Report, which was prepared in accordance with the Annual Accounts Act and the International Financial Reporting Standards (IFRS) as adopted by the EU.

New and amended accounting standards applied from 1 July 2021

New and amended standards and interpretations applicable from 1 July 2021 have not and will not have any significant effect on the financial reports, except the effects from the below new accounting standard.

Following the IFRS Interpretation Committee (IFRS IC) publication of an agenda decision on configuration or customization costs in cloud computing arrangements, Academedia has reviewed the effects on the consolidated financial statements and found that some previously reported intangible assets no longer meet the requirements to be reported as intangible assets. Adjustment has been made and were presented in the interim report for the third quarter 2021/22, see note 1.

Significant assessments and assumptions relating to impartment testing of goodwill

Significant assessments and assumptions are described in detail in AcadeMedia AB's Annual Report. Below are the most important areas where assessments and assumptions have been made and which are deemed to have the greatest impact on the group's impairment test of goodwill.

AcadeMedia annually tests, or when there is an indication of a decline in value, whether there is any need to write down goodwill. For these calculations, certain assumptions and estimates must be made regarding future revenue, cost level, margin, capital employed and required return on capital. The business is also affected by the regulations that exist in each country and what compensation levels exist. There is a continuous debate about the development and design of the school system and the framework for the independent schools in the countries where AcadeMedia operates.

Political decisions that lead to changes in regulations, including remuneration systems, can have a significant impact on the operations of AcadeMedia as well as on the financial results. In Sweden, before the 2022 election, several political proposals concerning the Swedish independent school system have been put forward. Among other things, proposals related to changes in the financing system (reduced school voucher) and about how the free choice of school for compulsory school should be organised. The proposals were voted down during the summer of 2022. During the spring and summer, the right-wing parties also opened up to investigate system changes. The risk that political proposals concerning the Swedish independent schools are put forward and will materialize, is deemed to be higher than last year. In this year's impairment test, current regulation and known changes have been applied.

In Norway, the regulations have been strengthened in recent years, including staff density norm and teacher density norm. In addition, a sub-component of the compensation model in Norway has been negatively revised from 1 January 2022.

The test shows that there is no need for impairment. New rules, assessments, and assumptions can result in a Goodwill impairment.

NOTE 2: FINANCIAL REPORTS DISCLOSING THE IMPACT FROM IMPLEMENTATION OF IFRS 16

Below, the effects on the financial reports from implementation of IFRS 16 Leasing are disclosed.

Consolidated income statement

		Fourth quarter 21/22		Full year 21/22			Full year 20/21
SEK m		IFRS 16 effect	Excl. IFRS 16		IFRS 16 effect	Excl. IFRS 16		IFRS 16 effect	Excl. IFRS 16
Net Sales	3,851	-	3,851	14,339	-	14,339	13,340	-	13,340
Cost of services	-321	-	-321	-1,274	-	-1,274	-1,120	-	-1,120
Other external expenses	-432	420	-852	-1,373	1,646	-3,019	-1,352	1,466	-2,818
Personnel expenses	-2,296	-	-2,296	-8,648	-	-8,648	-8,106	-	-8,106
Depreciation/amortization	-450	-348	-103	-1,755	-1,358	-398	-1,580	-1,224	-357
Items affecting comparability	-14	-	-14	-64	-	-64	-7	-	-7
TOTAL OPERATING EXPENSES	-3,514	72	-3,587	-13,115	288	-13,403	-12,166	243	-12,408
OPERATING INCOME	337	72	265	1,224	288	936	1,174	243	931
Financial income	0	-	0	1	-	1	3	-	3
Financial expenses	-114	-102	-13	-441	-401	-41	-405	-365	-40
Net financial items	-114	-102	-12	-441	-401	-40	-402	-365	-37
INCOME BEFORE TAX	223	-29	252	784	-112	896	772	-122	894
Tax	-59	7	-66	-179	25	-204	-173	27	-201
PROFIT FOR THE PERIOD	164	-23	187	605	-88	692	599	-95	694
Other comprehensive income for the period	-54	-	-54	31	-	31	57	-	57
COMPREHENSIVE INCOME FOR THE PERIOD	110	-23	133	636	-88	723	656	-95	751
Earnings per share basic (SEK)	1.55	-0.22	1.77	5.73	-0.83	6.56	5.64	-0.90	6.54
Earnings per share basic/diluted (SEK)	1.55	-0.22	1.77	5.72	-0.83	6.54	5.62	-0.90	6.52
Earnings per share based on number of shares outstanding (SEK)	1.55	-0.22	1.77	5.73	-0.83	6.56	5.62	-0.90	6.52

Consolidated statement of financial position in summary

		30 June 2022			30 June 2021
SEK m		IFRS 16 effect	Excl. IFRS 16		IFRS 16 effect	Excl. IFRS 16
ASSETS
Intangible non-current assets	6,597	-	6,597	6,409	-	6,409
Buildings	1,057	-	1,057	1,044	-	1,044
Right-of-use assets	8,367	8,199	167	7,489	7,348	141
Other property, plant, and equipment	924	-	924	791	-	791
Other non-current assets	79	10	70	41	15	25
Total non-current assets	17,024	8,209	8,815	15,773	7,363	8,410
Current receivables	704	-295	999	662	-314	976
Cash and cash equivalents	1,137	-	1,137	966	-	966
Total current assets	1,840	-295	2,135	1,628	-314	1,942
TOTAL ASSETS	18,864	7,914	10,951	17,401	7,049	10,353
EQUITY AND LIABILITIES
Total equity	5,758	-300	6,058	5,305	-212	5,517
Non-current liabilities to credit institutions	722	-	722	1,824	-	1,824
Long-term lease liabilities	7,464	7,402	62	6,495	6,447	48
Provisions and other non-current liabilities	212	-118	330	187	-45	232
Total non-current liabilities	8,397	7,284	1,113	8,506	6,402	2,104
Current interest-bearing liabilities	1,207	-	1,207	195	-	195
Short-term lease liabilities	1,180	1,071	108	1,077	981	95
Other current liabilities	2,323	-142	2,465	2,319	-122	2,441
Total current liabilities	4,709	929	3,780	3,591	860	2,731
TOTAL EQUITY AND LIABILITIES	18,864	7,914	10,951	17,401	7,049	10,353

Consolidated cash flow statement

	Fourth quarter 2021/22			Full year 2021/22
SEK m		IFRS 16 effect	Excl. IFRS 16		IFRS 16 effect	Excl. IFRS 16
Operating profit/loss (EBIT)	337	72	265	1,224	288	936
Depreciation/amortization	450	348	103	1,755	1,358	398
Adjustment for other non-cash items	62	-	62	37	-	37
Tax paid	-22	-	-22	-179	-	-179
Cash flow from operating activities before changes in working capital	828	420	408	2,838	1,646	1,192
Cash flow from changes in working capital	76	-33	109	-7	-40	33
Cash flow from operating activities	904	388	517	2,831	1,607	1,225
Cash flow from investing activities	-217	-	-217	-536	-	-536
Cash flow from financing activities	-518	-388	-131	-2,136	-1,607	-530
CASH FLOW FOR THE PERIOD	169	-	169	158	-	158

NOTE 3: REVENUE

	Fourth quarter		Full year
SEK m	2021/22	2020/21	2021/22	2020/21
Education-related income	3,708	3,551	13,885	12,967
State subsidies	67	40	243	164
Other income	76	81	211	209
Net Sales	3,851	3,672	14,339	13,340

Education-related income consists of school vouchers and participant fees. Tuition fees are recognised as revenue and allocated in line with the degree of completion over the period during which the education is provided, including time for planning and grading of student learning. Revenue for preschool operations is recognised based on the same fundamental principles. Revenue for services sold is recognised upon delivery to students. Revenue in the adult education operation is based on the same fundamental principles, but also takes into account the empirical estimate of the number of participants not completing the programme started, as well as estimates of compensation received based on the number of participants completing the programme.

State subsidies include State subsidies for the primary school initiative, smaller classes, skills development and before and after school care initiatives. State subsidies are recognised at fair value in the case that there is reasonable certainty that they will be received and that AcadeMedia will meet the conditions attached to the grant. Subsidies received to cover costs are recognised as an expense reduction for the relevant expense item, for example teacher salary premiums, head teacher premiums and other salary subsidies.

Other income refers to income not directly related to education.

NOTE 4: RELATED-PARTY TRANSACTIONS

Related party transactions are described in detail in the 2020/21 Annual Report. Related party transactions take place at an arm's length basis. During the full year, no significant related-party transactions took place.

NOTE 5: ACQUISITIONS

Acquiring company	Acquired company	Acquisition date	Segment
Vittraskolorna AB	Friskolan Lyftet AB	30-Aug-21	Comp. School
Pysslingen Förskolor och Skolor AB	Kråkbrinkens Förskola AB	01-Nov-21	Preschool
Espira Barnehager AS	Espira Holbekk Idrettsbarnehage AS	01-Nov-21	Preschool
Espira Barnehager AS	Holbekk Barnehagetun	01-Nov-21	Preschool
Espira Barnehager AS	Naturbarnehagene	01-Nov-21	Preschool
Espira Barnehager AS	Espira Sandtoppen Naturbarnehage AS	01-Nov-21	Preschool
Espira Barnehager AS	Espira Eikenøtta Naturbarnehage AS	01-Nov-21	Preschool
AcadeMedia GmbH	Plek voor kinderen B.V.	01-Apr-22	Preschool
AcadeMedia Educational Servies AS	Sandviks AS	01-May-22	Preschool

The purchase price allocations are preliminary one year from the acquisition date.

The acquisitions above represent a combined value of less than 5 percent of the Group. Voting rights amount to 100 percent.

The purchase consideration was in the form of cash.

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

Acquisition effects of acquisitions made (SEK m)	Total
Purchase consideration including transaction expenses	214
Purchase consideration excluding transaction expenses and including interest	208
Fair value of acquired net assets excluding goodwill	-72
Total goodwill	136

Fair values acquired (SEK m)	Total
Intangible non-current assets	19
Property, plant, and equipment	51
Right-of-use assets	28
Financial non-current assets	-
Current assets	37
Cash and cash equivalents	27
Interest bearing liabilities	-26
Interest bearing liabilities - IFRS 16	-28
Non-interest-bearing liabilities	-29
Current tax liability	0
Deferred tax liability	-7
Net assets acquired	72

Goodwill that has arisen in connection with acquisitions consists in part of synergies with existing businesses for example within personnel, recruitment, and personnel development and with service organisation, which can be streamlined as a result of the acquisitions, and in part of acquired resources which are not valued such as staff and the future sales development.

Impact of the acquisitions on the Group's cash and cash equivalents (SEK m)	Total
Purchase consideration excluding transaction expenses and including interest	208
Less purchase consideration that has not been settled in cash as of period end.	0
Cash and cash equivalents at time of acquisition	-27
Impact on the Group's cash and cash equivalents	181
Contribution of acquisitions to consolidated profit (SEK m)	Total
Net sales	84
Operating profit (EBIT)	11
If the units had been included in consolidated profit from July 1, 2021 the contribution would have been (SEK m)	Total
Net sales	218
Operating profit (EBIT)	22

After the end of the reporting period, Academedia has entered into an agreement to acquire all shares in Changemaker Educations AB for SEK 60 million. During 2021 the company had a turnover of SEK 64 million and EBIT of approximately SEK 10 million.

NOTE 6: FINANCIAL EXPENSES

	Fourth quarter		Full year
SEK m	2021/22	2020/21	2021/22	2020/21
Financial expenses
Interest expense	-7	-6	-25	-28
Borrowing costs1	-2	-1	-4	-2
Interest expense on the lease liability	-103	-92	-407	-370
Exchange rate losses	-2	-	-2	-0
Other	-1	-1	-3	-4
Financial expenses	-114	-100	-441	-405
Interest expense, property related lease liabilities	-102	-91	-401	-365

¹ Acquisition costs for loans are expensed over the term of the loan.

The financial expenses are somewhat higher than previous year, following increased property-related leasing liabilities as the operations grow.

NOTE 7: TAXES

The tax expense for the year amounted to SEK 179 (173) million, corresponding to an effective tax rate of 22.8 percent (22.5). The effective tax rate was in line with last year, despite lower nominal tax rate in Sweden. This is an effect of adjustment of tax from previous years and improved earnings in operations with higher tax rates.

NOTE 8: FINANCIAL INSTRUMENTS

AcadeMedia's financial instruments consist of accounts receivable, other receivables, accrued income, cash and cash equivalents, accounts payable, accrued expenses, interest-bearing liabilities, and deferred consideration. Since loans to credit institutions are at variable interest, which essentially are deemed to correspond to current market interest rates, the carrying amount excluding loan expenses is considered to correspond to fair value. 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 carrying amounts.

NOT 9: LEASING COMMITMENTS

In addition to the leasing contracts reported in the balance sheet, AcadeMedia has entered into leasing contracts which have not yet commenced. The total commitment for these contracts as per 30 June 2022 amounts to SEK 2,084 million (3,447 as per 30 June 2021). The decrease during the year is an effect of leasing contracts commencing in the period.

Parent company – financial reports

Parent company income statement in summary

	Fourth quarter		Full year
SEK m	2021/22	2020/21	2021/22	2020/21
Net sales	1	0	7	8
Operating expenses	-8	-6	-24	-22
OPERATING PROFIT	-7	-6	-17	-14
Interest income and similar items	6	5	20	18
Interest expense and similar items	-5	-4	-16	-15
Net financial items	1	1	4	3
Year-end appropriations	20	25	20	25
PROFIT BEFORE TAX	14	20	8	14
Tax	-2	-4	-1	-3
PROFIT FOR THE PERIOD	12	15	7	11

Parent company other comprehensive income

	Fourth quarter		Full year
SEK m	2021/22	2020/21	2021/22	2020/21
Profit for the period	12	15	7	11
Other comprehensive income for the period	-	-	-	-
COMPREHENSIVE INCOME FOR THE PERIOD	12	15	7	11

Parent company balance sheet in summary

SEK m	30 June 2022	30 June 2021
ASSETS
Participations in Group companies	3,261	3,261
Total non-current assets	3,261	3,261
Current receivables	3,178	3,017
Cash and cash equivalents	841	662
Total current assets	4,020	3,679
TOTAL ASSETS	7,281	6,941
EQUITY AND LIABILITIES
Restricted equity	106	106
Non-restricted equity	2,312	2,488
Total equity	2,418	2,593
Non-current liabilities	19	653
Current liabilities	4,844	3,694
TOTAL EQUITY AND LIABILITIES	7,281	6,941

Parent company statement of changes in equity

	Jul-Jun	Jul-Jun
SEK m	21/22	20/21
Opening balance	2,593	2,723
Profit for the period	7	11
Other comprehensive income for the period	-	-
Total profit for the period	7	11
Dividend	-185	-158
Other transactions with owners1	2	17
Closing balance	2,418	2,593

*) Transactions with owners include a new share issue connected to the convertible program for employees SEK +0.2 million and premium for issued warrants of SEK +2.1 million in the fourth quarter. Transactions with owners in the previous year includes new share issue connected to warrants SEK +17.1 million in the third and fourth quarter and share-matching program of SEK +0.2 million.

Multi-year review

SEK million, unless otherwise stated	Fourth quarter					Full year
	2021/22	2020/21	2021/22	2020/21	2019/20	2018/191	2017/181	2016/171
PROFIT/LOSS ITEMS
Net sales	3,851	3,672	14,339	13,340	12,271	11,715	10,810	9,520
Items affecting comparability	-14	-14	-64	-7	36	1	-48	-23
EBITDA	787	741	2,980	2,754	2,486	931	872	827
Depreciation/amortization	-450	-411	-1,755	-1,580	-1,513	-296	-250	-212
Operating profit/loss (EBIT)	337	330	1,224	1,174	973	635	622	615
Net financial items	-114	-100	-441	-402	-417	-69	-68	-80
Profit/loss for the period before tax	223	231	784	772	556	566	555	535
Profit/loss for the period after tax	164	181	605	599	431	431	430	416
BALANCE SHEET ITEMS
Non-current assets	17,024	15,773	17,024	15,773	15,262	8,218	7,823	6,574
Current receivables and inventories	704	662	704	662	710	976	860	695
Cash and cash equivalents	1,137	966	1,137	966	528	527	699	579
Non-current interest-bearing liabilities	747	1,850	747	1,850	1,914	2,205	2,209	2,200
Long-term lease liabilities	7,464	6,495	7,464	6,495	6,346	-	-	-
Non-current non-interest-bearing liabilities	187	162	187	162	207	305	135	114
Current interest-bearing liabilities	1,207	195	1,207	195	270	592	673	516
Short-term lease liabilities	1,180	1,077	1,180	1,077	1,010	-	-	-
Current non-interest-bearing liabilities	2,323	2,319	2,323	2,319	1,965	2,030	2,103	1,577
Equity	5,758	5,305	5,758	5,305	4,790	4,589	4,262	3,443
Total assets	18,864	17,401	18,864	17,401	16,500	9,720	9,383	7,849
Capital employed*	8,181	7,705	8,181	7,705	7,232	7,386	7,144	6,158
Net debt*	987	1,222	987	1,222	1,797	2,266	2,179	2,133
Property adjusted net debt*	237	526	237	526	1,138	1,533	1,528	1,550
KEY RATIOS
Net sales, SEK m	3,851	3,672	14,339	13,340	12,271	11,715	10,810	9,520
Organic growth incl. Bolt-on acquisitions, %	3.7%	10.4%	5.2%	8.1%	5.4%	4.4%	5.8%	9.0%
Acquired growth, larger acquisitions, %	0.4%	3.0%	1.6%	1.6%	-	3.2%	7.9%	0.8%
Change in currency, %	0.8%	0.3%	0.8%	-1.1%	-0.7%	0.8%	-0.1%	0.8%
Operating margin (EBIT), %	8.8%	9.0%	8.5%	8.8%	7.9%	5.4%	5.8%	6.5%
Adjusted EBIT, SEK m	279	281	1,001	939	728	634	670	638
Adjusted EBIT margin, %	7.2%	7.7%	7.0%	7.0%	5.9%	5.4%	6.2%	6.7%
Adjusted EBITDA, SEK m	382	374	1,398	1,295	1,066	930	920	850
Adjusted EBITDA margin, %	9.9%	10.2%	9.7%	9.7%	8.7%	7.9%	8.5%	8.9%
Return on capital employed, %, (12 months)	12.6%	12.6%	12.6%	12.6%	10.0%	8.7%	10.1%	10.9%
Return on equity, % (12 months)	12.0%	13.3%	12.0%	13.3%	11.6%	9.7%	11.2%	12.9%
Equity/assets ratio, %	55.3%	53.3%	55.3%	53.3%	51.4%	47.2%	45.4%	43.9%
Interest coverage ratio, times	31.6	27.9	31.6	27.9	15.9	12.5	10.9	9.4
Net debt/Adjusted EBITDA (12 months)	0.7	0.9	0.7	0.9	1.7	2.4	2.4	2.5
Adjusted net debt/adjusted EBITDA (12 months)	0.2	0.4	0.2	0.4	1.1	1.6	1.7	1.8
Free cash flow	397	341	922	1,117	805	356	688	658
Cash flow from investing activities	-217	-128	-536	-437	-375	-559	-970	-374
Number of full-time employees	13,965	13,733	13,815	13,360	12,686	12,405	11,863	10,564

¹ Relates to financial statements with application of accounting policies for financial years earlier than 1 July 2019. This entails accounting with application of leases under IAS 17, i.e. effects from leases of real estate are recognised as rent and not as finance leases.

Key performance indicator definitions, see pages 33-34.

Quarterly data, Group

Quarterly data		2021/22				2020/21
SEK million, unless otherwise stated	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Net sales	3,851	3,802	3,774	2,911	3,672	3,591	3,436	2,641
EBITDA	787	760	778	655	741	750	660	603
Depreciation/amortization	-450	-447	-436	-421	-411	-404	-386	-380
Items affecting comparability	-14	-27	7	-30	-14	6	-9	10
Operating income (EBIT)	337	313	342	233	330	346	275	222
Total financial items	-114	-113	-108	-106	-100	-98	-100	-104
Income before taxes	223	200	234	127	231	249	174	118
Tax for the current period	-59	-44	-48	-27	-50	-58	-40	-26
Profit/loss for the period	164	155	186	100	181	191	134	93
Number of children/students, schools	93,308	93,092	92,363	91,431	90,032	89,691	85,927	85,642
Number of full-time employees	13,965	13,904	13,847	13,543	13,733	13,767	13,127	12,814
Number of education units	559	556	552	545	539	536	525	525
Key ratios
Operating margin (EBIT), %	8.8%	8.2%	9.1%	8.0%	9.0%	9.6%	8.0%	8.4%
Adjusted EBIT	279	264	263	194	281	279	225	153
Adjusted EBIT, %	7.2%	6.9%	7.0%	6.7%	7.7%	7.8%	6.5%	5.8%
Adjusted EBITDA	382	367	365	284	374	372	315	235
Adjusted EBITDA, %	9.9%	9.7%	9.7%	9.8%	10.2%	10.4%	9.2%	8.9%
Net margin, %	4.3%	4.1%	4.9%	3.4%	4.9%	5.3%	3.9%	3.5%
Return on equity, % (12 months) 1	12.0%	12.6%	13.9%	13.1%	13.3%	13.9%	14.0%	12.9%
Return on capital employed, % (12 Months) 1	12.6%	12.7%	13.2%	12.8%	12.6%	12.4%	11.7%	10.8%
Equity/assets ratio, %1	55.3%	54.4%	53.0%	53.5%	53.3%	52.0%	50.2%	51.4%
Net debt/Adjusted EBITDA (12 months) 1	0.7	0.9	0.9	1.1	0.9	1.2	1.4	1.6
Interest coverage ratio1	31.6	32.3	33.0	31.0	27.9	23.5	21.6	18.4
Other
Free cash flow	397	19	606	-99	341	246	572	-42
Cash flow from operating activities	517	59	675	-26	435	275	621	26
Cash flow from investing activities	-217	-93	-120	-106	-128	-61	-236	-12

¹ Net debt/EBITDA and interest coverage ratio are important key performance indicators in AcadeMedia's business which from 1 July 2019 are calculated adjusted for the effect of IFRS 16 Leases to reflect a comparable measure to key performance indicators from previous periods.

Quarterly data, segment

SEK million, unless otherwise stated	2021/22
Preschool (SE, NO. DE, NL)	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Number of children (average)	23,651	23,020	21,982	20,999	22,265	21,891	20,969	20,664
Net sales	1,184	1,128	1,061	808	1,068	1,020	958	755
of which Sweden	365	351	339	253	349	343	328	247
of which Norway	582	574	520	377	552	524	481	364
of which Germany	215	203	201	178	168	153	149	144
of which Netherlands	8	-	-	-	-	-	-	-
of which Sandviks AS	15	-	-	-	-	-	-	-
EBITDA	73	91	45	33	104	93	40	28
EBITDA margin, %	6.2%	8.1%	4.2%	4.1%	9.7%	9.1%	4.2%	3.7%
Depreciation/amortization	-26	-26	-23	-24	-24	-22	-20	-22
Operating profit/loss (EBIT)	47	65	22	9	79	71	19	7
EBIT margin, %	4.0%	5.8%	2.1%	1.1%	7.4%	7.0%	2.0%	0.9%
Items affecting comparability	-21	-	-	-	-	-	-	-
Adjusted operating profit/loss (EBIT)	68	65	22	9	79	71	19	7
Adjusted EBIT margin, %	5.7%	5.8%	2.1%	1.1%	7.4%	7.0%	2.0%	0.9%
Number of preschool units	292	289	285	278	273	270	267	266

SEK million, unless otherwise stated			2020/21
Compulsory School	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Number of children/students (average)	28 052	27 965	27 867	27 697	27 374	27 046	26 193	26 170
Net sales	954	940	937	713	888	877	851	644
EBITDA	108	72	113	43	81	68	69	52
EBITDA margin, %	11.3%	7.7%	12.1%	6.0%	9.1%	7.8%	8.1%	8.1%
Depreciation/amortization	-21	-21	-21	-18	-18	-18	-18	-16
Operating profit/loss (EBIT)	86	51	92	24	63	50	52	36
EBIT margin, %	9.0%	5.4%	9.8%	3.4%	7.1%	5.7%	6.1%	5.6%
Items affecting comparability	6	-12	18	-30	-	-	-	3
Adjusted operating profit/loss (EBIT)	80	63	74	54	63	50	52	33
Adjusted EBIT margin, %	8.4%	6.7%	7.9%	7.6%	7.1%	5.7%	6.1%	5.1%
Number of education units	116	116	116	116	116	116	112	112

SEK million, unless otherwise stated		2021/22			2020/21
Upper Secondary School	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Number of children/students (average)	41 605	42 106	42 513	42 735	40 394	40 753	38 765	38 808
Net sales	1 284	1 280	1 278	964	1 223	1 202	1 142	856
EBITDA	180	153	168	129	147	170	144	121
EBITDA margin, %	14.0%	12.0%	13.1%	13.4%	12.0%	14.1%	12.6%	14.1%
Depreciation/amortization	-50	-53	-51	-41	-45	-48	-47	-40
Operating profit/loss (EBIT)	130	100	118	87	102	122	97	81
EBIT margin, %	10.1%	7.8%	9.2%	9.0%	8.3%	10.1%	8.5%	9.5%
Items affecting comparability	0	-15	-0	-0	-10	6	-	8
Adjusted operating profit/loss (EBIT)	130	115	118	87	112	116	97	73
Adjusted EBIT margin, %	10.1%	9.0%	9.2%	9.0%	9.2%	9.7%	8.5%	8.5%
Number of education units	151	151	151	151	150	150	146	147

SEK million, unless otherwise stated	2021/22				2020/21
Adult Education	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Net sales	429	450	498	427	492	488	484	385
EBITDA	41	44	64	71	63	68	79	61
EBITDA margin, %	9.6%	9.8%	12.9%	16.6%	12.8%	13.9%	16.3%	15.8%
Depreciation/amortization	-5	-4	-4	-4	-4	-4	-4	-4
Operating profit/loss (EBIT)	37	40	60	67	59	64	75	57
EBIT margin, %	8.6%	8.9%	12.0%	15.7%	12.0%	13.1%	15.5%	14.8%
Items affecting comparability	-	-	-11	-	-	-	-	-
Adjusted operating profit/loss (EBIT)	37	40	71	67	59	64	75	57
Adjusted EBIT margin, %	8.6%	8.9%	14.3%	15.7%	12.0%	13.1%	15.5%	14.8%

SEK million, unless otherwise stated	2021/22				2020/21
Group-OH and adjustments	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Net sales	0	4	0	0	0	4	1	1
EBITDA	386	400	388	380	346	350	328	341
Depreciation/amortization	-349	-342	-337	-333	-319	-311	-297	-299
Operating profit/loss (EBIT)	37	57	51	46	27	39	32	42
Items affecting comparability	-	-	-	-	-4	-	-9	-
Adjusted operating profit/loss (EBIT)	-35	-18	-21	-23	-32	-22	-18	-17

SEK million, unless otherwise stated		2021/22				2020/21
Group	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Number of children/students (average)	93,308	93,092	92,363	91,431	90,032	89,691	85,927	85,642
Net sales	3,851	3,802	3,774	2,911	3,672	3,591	3,436	2,641
EBITDA	787	760	778	655	741	750	660	603
EBITDA margin, %	20.4%	20.0%	20.6%	22.5%	20.2%	20.9%	19.2%	22.8%
Depreciation/amortization	-450	-447	-436	-421	-411	-404	-386	-380
Operating profit/loss (EBIT)	337	313	342	233	330	346	275	222
EBIT margin, %	8.8%	8.2%	9.1%	8.0%	9.0%	9.6%	8.0%	8.4%
Items affecting comparability	-14	-27	7	-30	-14	6	-9	10
Effect of IFRS 16 on operating profit	72	75	72	69	63	61	59	59
Adjusted operating profit/loss (EBIT)	279	264	263	194	281	279	225	153
Adjusted EBIT margin, %	7.2%	6.9%	7.0%	6.7%	7.7%	7.8%	6.5%	5.8%
Net financial items	-114	-113	-108	-106	-100	-98	-100	-104
Profit/loss after financial items	223	200	234	127	231	249	174	118
Tax	-59	-44	-48	-27	-50	-58	-40	-26
Profit/loss for the period	164	155	186	100	181	191	134	93
Number of full-time employees (period)	13,965	13,904	13,847	13,543	13,733	13,767	13,127	12,814
Number of units	559	556	552	545	539	536	525	525

Reconciliation of alternative key performance indicators

The table below presents the data from which the alternative performance indicators used in the report are calculated. See definitions for more information

SEK million, unless otherwise stated	Fourth quarter		Full year
	2021/22	2020/21	2021/22	2020/21	2019/20	2018/192	2017/182
Adjusted operating profit
Operating profit	337	330	1,224	1,174	973	635	622
- Items affecting comparability	-14	-14	-64	-7	36	1	-48
- IFRS 16 impact	72	63	288	243	209	-	-
= Adjusted operating profit	279	281	1,001	939	728	634	670
Adjusted EBIT margin
Adjusted operating profit	279	281	1,001	939	728	634	670
Divided by /Net sales	3,851	3,672	14,339	13,340	12,271	11,715	10,810
= Adjusted EBIT margin	7.2%	7.7%	7.0%	7.0%	5.9%	5.4%	6.2%
Adjusted EBITDA
Adjusted operating profit	279	281	1,001	939	728	634	670
- Depreciation excluding depreciation relating to	-103	-92	-398	-357	-338	-296	-250
property rental agreements
= Adjusted EBITDA	382	374	1,398	1,295	1,066	930	920
Net debt
Non-current interest-bearing liabilities	8,211	8,344	8,211	8,344	8,260	2,205	2,209
+ Current interest-bearing liabilities	2,386	1,272	2,386	1,272	1,279	592	673
- Interest-bearing receivables - Cash and cash equivalents	- 1,137	- 966	- 1,137	- 966	- 528	4 527	4 699
- IFRS 16 Non-current and current lease liabilities1	8,474	7,428	8,474	7,428	7,214	-	-
= Net debt excluding IFRS 16	987	1,222	987	1,222	1,797	2,266	2,179
Property-adjusted net debt
Net debt (as described above)	987	1,222	987	1,222	1,797	2,266	2,179
- non-current property loans	722	671	722	671	597	644	603
- current property loans	28	25	28	25	62	89	48
= Property adjusted net debt excluding IFRS 16	237	526	237	526	1,138	1,533	1,528
Return on capital employed %, 12 months
Adjusted EBIT	1,001	939	1,001	939	728	634	670
+ Interest income	1	0	1	0	0	1	2
divided by
Average equity	5,531	5,047	5,531	5,047	4,690	4,426	3,853
+ average non-current interest-bearing liabilities	8,277	8,302	8,277	8,302	5,232	2,207	2,204
+ average current interest-bearing liabilities	1,829	1,276	1,829	1,276	935	632	594
- IFRS 16 average equity1	-256	-165	-256	-165	-59	-	-
- IFRS 16 average non-current and current lease liabilities1	7,951	7,321	7,951	7,321	3,607	-	-
= Return on capital employed excluding IFRS 16, %	12.6%	12.6%	12.6%	12.6%	10.0%	8.7%	10.1%
Return on equity %, 12 months
Profit/loss after tax	605	599	605	599	431	431	430
- IFRS 16 profit/loss after tax	-88	-95	-88	-95	-117	-	-
divided by
Average equity	5,531	5,047	5,531	5,047	4,690	4,426	3,853
- IFRS 16 average equity1	-256	-165	-256	-165	-59	-	-
= Return on equity, %	12.0%	13.3%	12.0%	13.3%	11.6%	9.7%	11.2%

		2021/22				2020/21
SEK million, unless otherwise stated	Q4	Q3	Q2	Q1	Q4	Q3	Q2	Q1
Interest coverage ratio
Adjusted operating profit EBIT (12 months)	1,001	1,003	1,018	980	939	936	881	806
+ Interest income (12 months)	1	0	0	0	0	0	0	0
+ Other financial income (12 months)	0	-0	3	3	3	3	4	4
divided by
Interest expense (12 months)	-432	-421	-409	-402	-399	-403	-404	-404
- Interest expense (12 months) IFRS 161	-401	-390	-378	-370	-365	-363	-363	-360
= Interest coverage ratio (excl. IFRS 16)	31.6	32.3	33.0	31.0	27.9	23.5	21.6	18.4

¹ Amounts relate to adjustments and reclassifications made to reverse the adjustments associated with implementation of the accounting standard, IFRS 16 Leases, to reflect an accounting practice applied in previous accounting periods (IAS 17).

2 Relates to financial statements with application of accounting policies for financial years earlier than 1 July 2019. This entails accounting with application of leases under IAS 17, i.e., effects from leases of real estate are recognised as rent and not as finance leases.

Definitions of key performance indicators

Implementation of IFRS16 has a major impact on AcadeMedia in that all leases must be capitalised as lease assets and liabilities, respectively. Several important key performance indicators have the same definition as previously and are not affected by IFRS 16. AcadeMedia uses prospective application from 1 July 2019, which means that the previous year's accounts have not been restated.

KPIs	Definition	Purpose4
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.	The 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.	The 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 full-time employees during the period, full-time equivalent (FTE).	The number of employees is the main cost driver for the Company.
Return on equity5	Profit/loss for the most recent 12-month period according to IAS 17 i.e., excluding the effects of the implementation of IFRS16, divided by average equity applying IAS 17 (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 employed2	Adjusted operating profit/loss (EBIT) for the most recent 12-month period plus interest income, divided by average capital.	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.
EBITDA	Operating profit/loss before depreciation/amortisation and impairment of non-current assets and right-of-use assets. This KPI is only used for monitoring the segments which accounts for leasing of properties in accordance with IAS 17.	EBITDA is used to measure profit (loss) from operating activities, regardless of depreciation/amortisation.
EBITDA margin	EBITDA as a percentage of net sales.	EBITDA margin is used to set EBITDA in relation to sales.
Equity excl. IFRS162	Equity according to IAS 17 i.e. excluding the effects of the implementation of IFRS16.	Equity excluding IFRS16 is used to be able to calculate return on equity consistently.
Net financial items	Financial income less financial expenses.	The measure Net financial items is used to illustrate the outcome of the Company's financial activities.
Free cash flow2	Cash flow from operating activities and changes in working capital inclusive of property lease payments less investments in operating activities. Investments in operating activities relate to all investments in property, plant and equipment and intangible assets except buildings and acquisitions.	This measure shows how much cash flow the business generates after the necessary investments have been made. This cash flow can be used for purposes such as expansion, amortisation, or dividends.
Acquired growth	Increase of net sales due to larger acquisitions during the last 12 months.	Indicates growth generated from acquisitions in contrast to organic growth and currency effects.
Adjusted EBITDA2	Operating profit/loss according to the previous standard IAS 17 i.e. excluding the effects of IFRS16 and before amortisation/depreciation of intangible assets and property, plant, and equipment, and excluding items affecting comparability.	Adjusted EBITDA is used to measure underlying profit from operating activities, excluding depreciation/amortisation and items affecting comparability.
Adjusted EBITDA margin2	Adjusted EBITDA as a percentage of net sales.	Adjusted EBIT margin sets underlying operating profit excluding amortisation in relation to sales.
Adjusted net debt2	Net debt less real estate-related	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 off and sold.
Adjusted net debt/Adjusted EBITDA2	Adjusted net debt 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 (adjusted EBITDA), to pay off the Company's liabilities, including property-related loans. It shows the loan-to value ratio of the business excluding real assets such as real estate.
Adjusted EBIT2	Operating profit/loss (EBIT) according to the previous standard IAS 17 i.e. excluding the effects of the implementation of IFRS 16, adjusted for items affecting comparability.	Adjusted EBIT is used to get a better picture of the underlying operating profit.
Adjusted EBIT margin2	Adjusted EBIT as a percentage of net sales.	Adjusted EBIT margin sets underlying operating profit in relation to sales.
Items affecting comparability	Items affecting comparability are income and cost of an irregular nature such as larger (>SEK 5 million) retroactive income related to prior financial years, to property-related items such as capital gains, major property damage not covered by insurance, advisory costs relating to larger acquisitions or fundraising, major integration costs resulting from	Items affecting comparability are used to illustrate the profit/loss items that are not included in ongoing operating activities, to obtain a clearer picture of the underlying profit trend.

⁴ According to ESMA guidelines on performance measures, each performance measure must be motivated.

⁵ The key indicator was calculated applying IAS 17 i.e. excluding effects from implementing IFRS 16, as the implementation had a significant impact on assets and liabilities as well as items in the income statement. By excluding the IFRS 16 effects continuity is achieved.

	acquisitions or reorganisations according to plan, as well as costs arising from strategic decisions and major restructuring that result in closing units.
Net debt2	Interest-bearing debt excluding property-related lease liabilities net of cash and cash equivalents and interest-bearing receivables.	Net debt is used to illustrate the size of the debt less current cash and cash equivalents (which in theory could be used to repay loans).
Net debt/ Adjusted EBITDA2	Net debt (closing balance for the period) divided by adjusted EBITDA for the past 12 months. .	Net debt/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.
Organic growth incl. smaller bolt on acquisitions	Increase of net sales excluding larger acquisitions and changes in currency.	The Company's growth target is to increase net sales including smaller bolt-on acquisitions by 5-7 percent per year. The purpose of the key performance indicator is thus to follow up on this target.
Employee turnover	The 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) Calculated on an aggregated basis over the reporting period.	Employee turnover is used to measure the proportion of employees who leave the company and who must be replaced every year.
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. The key performance indicator is affected by IFRS16 because net profit is affected by elimination of rent and the addition of amortisation and interest expense related to right-of-use assets.	Earnings per share is used to clarify the amount of profit for the period to which each share is entitled.
Interest coverage ratio2	Adjusted EBIT for the past 12 months plus financial income, in relation to interest expense excluding interest expense attributable to property-related leasing liabilities.	Interest coverage ratio is used to measure the Company's ability to pay interest costs.
Operating margin (EBIT margin)	Operating profit/loss as a percentage of net sales.	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.
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). Calculated as an average over the reporting period.	Absence due to illness is used to measure employee absence and provide indications as to employee health.
Equity/assets ratio2	Equity according to IAS 17 i.e. excluding the effects of the implementation of IFRS16 in percent of total assets excluding property-related right of use assets.	The equity/assets ratio shows the proportion of the Company's total assets financed by shareholders' equity. A high equity/assets ratio is a measure of financial strength.
Capital employed excl. IFRS162	Total assets, less non-interest-bearing current liabilities, provisions, and deferred tax liabilities adjusted for property-related lease liabilities. Or: Equity plus interest-bearing liabilities but excluding property-related lease liabilities.	Capital employed indicates how much capital is needed to run the business regardless of type of financing (borrowed or equity). By excluding the IFRS16 effect, continuity can be achieved in the return

General

All amounts in tables are in SEK million unless otherwise stated. All figures in parentheses () are comparative figures for the same period in 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.

figure.