YA Holding AB (publ) Investor presentation Q2 2017 Jan Larsson CEO - - PowerPoint PPT Presentation

YA Holding AB (publ) Investor presentation Q2 2017

Jan Larsson CEO Mikael Vesterlund CFO September 1, 2017

2

Continued focus on jobs and integration

Market situation

Low number of asylum seekers to Sweden, but ~2,000 people get work permits and enter labour force each month

3

20000 40000 60000 80000 100000 120000 140000 160000 180000 200000 5000 10000 15000 20000 25000 30000 35000 40000 45000 2014-01 2014-03 2014-05 2014-07 2014-09 2014-11 2015-01 2015-03 2015-05 2015-07 2015-09 2015-11 2016-01 2016-03 2016-05 2016-07 2016-09 2016-11 2017-01 2017-03 2017-05 In reception system Applications for asylum Granted

Continued stable inflow to the labour market

• In the quarter ~6.500 people were

granted permission to stay

• Still close to 100 000 pople in

migration system

• Handling time has stabilized on

approximately 450 days

• Proportion of applications that are

granted is approximately 50%

• Half of people in reception

system in age 20-59

• 2/3 from Afghanistan, Iraq, Syria,

Iran and Somalia.

Source: The Swedish Migration Board, Migrationsverket

Steady unemployment levels, despite increase in the number of jobs in the economy

4

50 000 100 000 150 000 200 000 250 000 300 000 350 000 400 000 450 000 Open In programmes

Large need for matching and training for immigrants:

• 5,034,000 people employed, up 99,000

from Q2 2016.

• Total unemployment increases

somewhat due to immigration inflow to labour market

• 350,000 people unemployed (7.2%).

60,000 in establishment programme

• Youth unemployment down to 9.9% from

11.1 a year ago. 20% (11,000) in establishment programme

• 45,000 unemployed were employed in

the month, only 2,500 from establishment programme

Source: The Swedish Public Employment Service, Arbetsförmedlingen

Unemployment Sweden 2014-2017

Government forecast decreasing unemployment

5

5,9 5,9 5,9 6,6 6,9 1 2 3 4 5 6 7 1 2 3 4 5 6 7 2017 2018 2016 2019 2020 Previous estimates New forecast

Forecast unemployment rates Finance minister Magdalena Andersson’s comments on the forecast

• ”We will be able to present more large and

important reforms to strengthen jobs and growth in Sweden – but also reduce inequality”

• ”Young and middle aged should educate to

maintain competences that lead to

• employment. Old people without education

should get subsidised employments”

• ”We diverge from other forecasts since we

know what reforms and actions there will be in the budget bill”

• ”We need to do more to support foreigners,

especially newly arrived, to become employable”

6

YA’s education leads to employment

88 82 81 80 77 77 v28 +14% v34 v26 v24 v30 v32 96 89 84 73 72 75 v28 v32 v30 +28% v34 v26 v24

Share employed 90 days after course

8 weeks gliding average 86% 9% 5%

Totally Not Partly

In profession: 91% 9%

Full time Part time

Workday: 67% 16% 17%

Totally Not Partly

In profession: 82% 18%

Full time Part time

Workday:

Share employed 180 days after course

8 weeks gliding average

7

Good results across industries and regions

80 96 71 87 98 78 77 71 Maskinförare Transport Industri Övrigt Fastighet Tillverkning Bygg Vård

Share employed after 90 days,

Last 16 weeks 86 92 78 71 79 100 78 83 78 74

V Svealand S Norrland N Mälardalen Sthlm / Gotland Småland / Blekinge Skåne Gbg / Halland S Mälardalen / Ö-götland NV Götaland N Norrland Avg 82

By industry By region

Volumes of labour market education are still decreasing, but YA’s volumes are higher than a year ago

8

Total number of AUB participants down 7% AUB participants in YA- courses up 18% compared to June 2016 Potential to add to both YA’s and total as transport educations start in September and October Professional and study preparatory courses are appealed against based on the very low winning prices

9

A quarter subdued by start-up costs

Financial information

Profit & loss Q2 2017

10

Revenues were SEK 93.8 million (100.0) in the quarter. The average number of students in AUB has been 1732 (1624) for the period. The decline versus prior year is due to terminated business within truck/bus. EBITDA amounted to SEK 3.0 million (10.0)

• 10
• 5

5 10 15 20 25

15:Q1 15:Q2 15:Q3 15:Q4 16:Q1 16:Q2 16:Q3 16:Q4 17:Q1 17:Q2

EBITDA EBIT

Subdued results due to start-up investments

Normalized EBITDA

11

EBITDA

(SEK million)

Reported EBITDA 21.0 10.0 2.0 7.6 6.1 3.0 Non recurring cost +3.0 Other income Normalized EBITDA 21.0 13.0 2.0 7.6 6.1 3.0 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2016

EBITDA (SEK million)

Cash balance amounted to SEK 12.4 million (28.8) at the end of the quarter. Cash flow amounted to SEK 7.6 million (8.0). Cash flow from operating activities amounted to SEK 18.3million (11.9). Change in Working capital was SEK 23.6 million (8.6). Net debt amounted to SEK 374.1 million (370.7).

12

Balance sheet and cash flow

(SEK millions) Apr-Jun

EBITDA 3.0 Change in working capital 23.6 Cash flow before interest and taxes 26.6 Interest paid

• 7.0

Income tax paid

• 0.8

Cash flow from operating activities 18.8 Cash flow from investing activities

• 1.0

Cash flow from financing activities

• 10.2

Cash flow for the period 7.6

Cashflow Q2 2017

Actual Target Leverage (Net debt/EBITDA) 19.9x <3.0x Interest coverage (EBITDA/Net finance charges) 0.7x >2.5x

13

Covenants

14

Profitable Growth Strategy

Delivery

Stockholm Malmö

7 21 Augusti

Örebro Luleå Umeå

4 September 11 18 25

Falun Västerås Uppsala Falun Sundsvall Uddevalla

2 Oktober

Falkenberg

28

Still to be decided in: Nyköping Växjö Gävle Östersund Stockholm Göteborg Luleå Falun Visby Uppsala Norrköping Gävle Karlstad Helsingborg Kristianstad Still to be decided in:

Start date for test and assessment module

Bus Truck

Agreed start dates in Transport educations

Göteborg Jönköping Karlskrona Skövde Karlstad Kristianstad Sundsvall Östersund Gällivare

16

225

Adjustments 2016*

30

Re-won 2017

300

Rewon 2016 Adjustments 2017**

225

Estimated contract value growth

25 130

• 150

Lost spring 2016

• 150

Contract value change 2016-17

*Adjustments 2016 primarilly due to lower than expected volumes in Yrkesvux contracts and vehicle mechanics ** Adjustments 2017: Lower vux volumes due to start of AUB Transport and risk of loosing parts of engineer module education Course Place Start Up and running TAXI 8-10 places 1/3 1/1-18 STOM* Örebro 1/4 1/9 YH** 10 starts Distance 11/9 1/10

• Construct. Borlänge

19/6 1/10

• Ins. Fitter

Gävle 11/9 1/11 STOM* Falun 1/8 1/11 STOM* Malmö 1/7 1/11 Bus 7 places SEP ~1/12

• Construct. Umeå

19/9 1/1-18 STOM* Gävle 1/10 1/1-18 STOM* Sundsvall 1/10 1/1-18 STOM* Växjö 1/10 1/1-18 STOM* Kristianstad 1/10 1/1-18 Bus 7 places OCT 1/1-18 Truck 6 places SEP 1/1-18 Vux Constr Örebro SEP 1/1 -18 Bus 7 places NOV 1/2 -18 Truck 7 places NOV 1/2-18

• Prof. Swed 4 regions

1/10 1/4 -18

>60 ongoing start-up projects

*STOM = Support and matching **YH = Vocational university

In addition to Transport

17

Thank you!

jan.larsson@ya.se mikael.vesterlund@ya.se