For an amount of, we offer % of our shares at a share price of . The minimum investment is and the maximum investment is .
To increase sales efforts and create an endurance in the production, the board has decided to issue 7 500 new shares at 200 SEK each. They can be bought in bundles of 25, and the total number of shares after the issuing is 57 500.
Profit is calculated to reach over EUR 200 000 in 2017-2018, and EUR 700 000 in 2018-2019. EMS main goal is to create return to its investors, and investors can expect a return of investment through dividends within 3-4 years.
EMS also aims for an IPO, or being acquired by another company, within 3 years.
The problem this product solves
Many students are learning additional languages in school and English is naturally the most common language. The most effective way to learn a new language is to listen, speak it and get ”exposed” to the language. Generally-speaking, Swedes speak good English. This is not only because of effective instruction at school, but because Swedes have been exposed to English since childhood through TV, movies and music.
In school this part is often missing. Instead outdated books and uninspiring material creates unmotivated students.
EMS solves this problem for students learning English, Spanish, French, German and Swedish as an additional language.
How the product solves it
Where grammar, parts of speech and vocabulary are taught in school EMS complements education and catches the students attention in an effective way with continuously updated news (NewsTicker), film (iCatcher) and music (HitTicker). The content is specific to the country where the language is spoken, making students learn about the country and its citizens at the same time they learn the language.
Various search methods allow students to explore the archive by category, level of difficulty and key words so that they can choose material that is appealing to them. This increases curiosity and motivation.
Five NewsTickers in each language are produced weekly. Students receive topical and interesting news reports to develop their language skills with. The narrated articles are adapted to a specific level of difficulty and are supplemented with questions, exercises and vocabulary lists.
Each month EMS produce a new iCatcher in each language. The films provide students with invaluable insights into the country whose language they are studying. The films are subtitled; there are also interactive questions and suggestions for exercises and vocabulary.
HitTicker - karaoke-songs from each country, practicing pronunciation in an entertaining way.
For a free trial account, see appendix.
Product use cases
EMS language services are supplementary teacher resources for language learning in everyday school education. In any country where English, Spanish, French, German or Swedish is studied as a second language, EMS service can be used directly in the classroom as a compliment to already existing teaching material.
Hundreds of thousands of students already use EMS service in Norway, Sweden and Denmark – now the rest of the world is waiting with EMS focusing on the Asian market.
Niclas Rundgren CEO
Niclas Rundgren is the CEO and responsible for the day to day business at EMS. He is also the owner representative of Daimont Förvaltning AB, owning 65% of EMS stocks. Daimont injects financing when needed and has contributed approximately 1.7 MSEK in conditional shareholder contributions. Niclas Rundgren worked previously twenty ... See more
Niclas Rundgren is the CEO and responsible for the day to day business at EMS. He is also the owner representative of Daimont Förvaltning AB, owning 65% of EMS stocks. Daimont injects financing when needed and has contributed approximately 1.7 MSEK in conditional shareholder contributions. Niclas Rundgren worked previously twenty years within the finance sector focusing on cash management in smaller companies. Since 2009, he has worked solely with EMS. Throughout his entire career, Niclas only worked with companies where he has been a part-owner and he has extensive experience running smaller operations from start. He readily establishes new contacts and ensures that long-term relationships are built. Niclas is a vibrant entrepreneur who readily motivates and engages employees and he is also experienced in effectively solving both great and minor problems. He has extensive knowledge of economic-and-accounting issues. See less
Drago Boras Owner
Drago Boras owns via companies 35% of the EMS shares. With an education within workshop engineering at Blekinge Tekniska Högskola his main working experience has been within industrial IT, with focus on automated processes and user interfaces. The last ten years was within a Copenhagen based engineering company called FractureCode ... See more
Drago Boras owns via companies 35% of the EMS shares. With an education within workshop engineering at Blekinge Tekniska Högskola his main working experience has been within industrial IT, with focus on automated processes and user interfaces. The last ten years was within a Copenhagen based engineering company called FractureCode corporation ApS, where he was Operations & Implementations Manager and a member of the management team. The work consisted mainly in managing sales, development and large scale projects in an international environment. 2005 Drago and a close friend founded Mobill Scandinavia AB. The company is today one of few suppliers of mobile based ticket payment with patented technology. Drago ended his operational involvement and left the board 2011, when the company was taken over by venture capitalists. Throughout the years, Drago´s been involved in the development of two approved patents, both as an employee and as an entrepreneur. As of mid 2015 Drago is principal owner and CEO of a support and engineering workshop, Maskin & Montage Mech AB in his hometown of Malmö. See less
EMS Production Team Production
EMS’ production team includes some 20 editors, proofreaders, recorders and film producers who have produced the content in the company’s digital archive for the past 10 years. They are based in Sweden as well as internationally and all have extensive experience in producing language products and are highly knowledgeable in ... See more
EMS’ production team includes some 20 editors, proofreaders, recorders and film producers who have produced the content in the company’s digital archive for the past 10 years. They are based in Sweden as well as internationally and all have extensive experience in producing language products and are highly knowledgeable in their fields. Quality control is maintained through external consultants and substitutes are available to ensure that production is never disrupted. See less
EMS’ primary target group consists of school students aged 10 years and upwards that study English, Spanish, French or German as a second language anywhere in the world. EMS’ service does not need to be localized for new countries or regions - all students that study use the same content regardless. Therefore, the services can be scaled globally without affecting the production cost.
In Sweden there are 1.2 million students in this category and EMS’ exclusive partner in Sweden has deemed a realistic value on the for the EMS selection to be approximately 40 MSEK per year.
EMS has not been able to find any other company with a similar product or content for digital language studies as EMS. Instead the competition consists of local publishers of teaching material.
There are other digital language services, often free to use without charge - but without any pedagogic preparation or the features that NewsTicker, iCather and HitTicker provides. EMS focuses on school education in five languages and we reach our market through cooperations with market leading publishers of educational material.
EMS archive with the production value of 30 MSEK gives a great head start on competition.
Unique differentiator from competitors
EMS competitors are mainly local publishing companies, producing and distributing teaching materials to schools in that geographical area. EMS´ products are complementary teaching materials accessible in the classroom regardless of what local, main supplier the school already is using. In this way, EMS avoids direct competition with other publishers.
Schools that still use printed educational materials in language education finds EMS digital services as a great complement.
By adding new content every week, the interest from students to use EMS services are maintained. EMS has not located any other producer updating and supplying new content as frequently as EMS does.
Company revenue streams
Agreements are based on a fixed annual remuneration, a royalty on the partner's revenue or a combination of the two. EMS´revenue is related to the number of inhabitants within a partners geographical area.
EMS always strives to find the most advantageous contractual arrangements for each market, where the basic idea is to strive for a long term win-win cooperation.
Generally speaking a country with 10 million inhabitants generates apr. €100 000 yearly revenue to EMS. For larger countries an additional 10% royalty in the partners sales is possible.
EMS identifies an exclusive partner in each geographical area. The chosen partner gets access to EMS services through a complete range of easily accessible APIs. The partner can choose to include the service in their existing offer to schools and sell subscriptions in the agreed area.
EMS content can also be distributed as a free service for schools to use as a marketing tool for the partners own brand and product range.
EMS currently has exclusive partners in Norway (Cappelen Damm), SLI for Sweden and Alinea, an Egmont company, for Denmark.
2009 – agreement with Kunskapsskolorna shows the potential in the service. Exclusive agreement with Alinea (an Egmont company) for Denmark.
2010 – exclusive agreement for Norway with Cappelen Damm, Norways largest publisher.
2012 – exclusive agreement with NE.se (Nationalencyklopedin AB) for Sweden.
2013 – exclusive agreement for Italy with Loesher Editore.
2016 - In September a new exclusive partner for Sweden was signed. A marketing survey regarding the East Asian market is completed. (see appendix)
Next key objectives
Spring 2017. Markting actions in Asia including China is fully developed and ongoing.
Spring/summer 2017. A new version of EMS product line aimed at the private market will be launched together with www.pons.com for the German speaking market.
Summer 2017, breakeven is reached.
Autumn 2017. Market survey completed and marketing actions launched in Africa and South America.
Spring 2018. Mandarin is added to EMS´portfolio of languages.
EMS has so far financed it´s business with revenue and loans from shareholders when needed. Since the fiscal year 2015-2016 ended in a substantial loss due to the legal argument* with a former partner for Sweden, the owners put in a conditional shareholder contribution. EMS currently has 1.9 MSEK in conditional shareholder contribution and an additional loan of another million SEK.
The issuing of new shares puts EMS in a strong position for the planned expansion towards Asia, which is currently being launched.
*For information regarding legal argument, please see Financial Forecast.
Cappelen Damm for Norway, SLI AB for Sweden and Alinea (an Egmont Company) for Denmark. They are well known publishers of educational material, distributing our service on exclusive terms in their respective countries.
Use of funds
The funds will be used in mainly three areas:
20% of the funds: Increase sales efforts in Asia. A marketing survey during autumn 2016 has specified possible partners in eight Asian countries. These companies are currently being contacted with collaboration proposals.
20% av the funds: A collaboration for the German speaking market has been discussed for some time with www.pons.com, and with new financial resources actions can be taken.
60% of the funds: Production costs. A running production is a foundation in the business. With the resources being added, the production is financed for at least 12 months ahead.
The exclusive agreements that have been signed with market leading publishers of teaching material in a changing, digital world is recognition enough showing that EMS services have a strong position in every modern classroom where language education is being performed.
During 2017-2018 the profit is calculated to reach over EUR 200 000, the year after that, EUR 700 000. EMS main goal is to create return to its investors, and investors can expect a return of investment within 3-4 years.
There is, however, in managements long-term goals an intent to list EMS shares on a suitable public stock market to facilitate trade. We aim for an IPO within three years, or being acquired by another company.
The most substantial risk is if a client unexpectedly terminates a contract. The production must be covered and if revenue suddenly drops, production can be affected.
In 2015, EMS was subjected to great stress, when the largest partners refused to pay compensation to EMS, the intention was probably to take over EMS material with regards to a clause in the agreement. EMS won fully the legal process and has since focused on its core business again, despite the significant impact.
The issuing of shares focuses on expansion, where multiple contracts reduces the risk of similar scenarios occurring again.