Lumi Gruppen H2-23: Strong growth for ONH, transition for Sonans

o	Total income of NOK 210.4 million (247.6)  
o	EBIT of NOK 12.8 million (32.6) 
o	NOK 30.9 million in cash flow from operations (30.8) aided by strong credit
control measures
o	Improved profitability for ONH due to strong student intake and stable cost
development 
o	Sonans' cost base rationalised to align with private candidate demand

"The second half of 2023 was very different for our two operating segments. ONH
continued its uninterrupted growth over the last four years, while Sonans is
still struggling in a weak market. However, the steps we have taken on cost cuts
and credit control have yielded results and contributed to an operational cash
flow that is in line with last year," says CEO Erik Brandt.

ONH
ONH's revenues grew by 19 per cent from the corresponding period last year. ONH
continued its positive development in the second half, achieving robust
profitability through a combination of top-line growth and strategic cost
initiatives. ONH has now become our most significant operating segment.

Sales growth was driven by new online programmes in combination with a higher
share of recurring revenues from student volume growth over the last years.

The vocational initiative of Lumi Gruppen is now fully integrated with ONH, and
the first single subjects are planned to be launched in 2024, capitalising on
synergies in brand, academic resources, and administration.

ONH will relocate to new, larger facilities during the latter half of 2024. This
decision aligns with the university college's growth plans and underscores its
commitment to strengthening the educational offering. The move is expected to
incur an additional NOK 8-10 million per year of premises costs starting in
2025.

ONH has submitted an application to NOKUT for institutional accreditation,
aiming to attain self-accreditation rights. This will enable the university
college to independently develop, approve, and launch programmes up to the
Bachelor's level, bypassing the conventional NOKUT process that presently causes
delays in the introduction of new programmes.

Sonans
Revenues for Sonans decreased by 38 per cent from the corresponding period last
year, as expected. The decline in revenue is largely explained by lower student
volumes and the prior period benefitting from a change in revenue recognition
delivering a one-off revenue boost of approximately NOK 20 million.

Sonans has strengthened its order-to-cash process by implementing credit checks
and tighter follow-up of students who are late with payments. This has resulted
in a stronger credit quality and hence a stronger cash flow, only 17 per cent
below the prior year period.

The announced cost programme is progressing on track, with an expected further
effect in the range of NOK 8-12 million for Sonans with impact from the next
school year 2024/2025.

Group financials
Total income in the second half were NOK 210 million, compared to NOK 246
million in the same period of 2022. The decline is primarily attributed to
challenges in the private candidate market.

EBIT was NOK 12.8 million, compared to NOK 32.6 million in the same period the
year before. The lower EBIT is a result of the decline in revenue not being
fully offset by the cost programmes implemented.

Net loss for the half year was NOK 10.0 million, compared to a profit of NOK
11.5 million in the same period in 2022. Earnings per share were negative NOK
0.19, compared to positive NOK 0.32 the year before.

Lumi Gruppen has strengthened its order-to-cash process by implementing credit
checks and tighter follow-up of students who are late with payments. Cash flow
from operations was NOK 30.9 million in the second half, compared to NOK 30.8
million last year.

Outlook
Lumi's business model continues to transform to a more flexible and scalable
business model with a lower share of fixed costs.

Oslo Nye Høyskole 2023/2024
Based on the autumn intake and the spring intake completed in January 2024,
revenue is expected to end at NOK 235-236 million for ONH in the school year
2023/2024. The estimate presented in the third quarter 2023 report was NOK
227-232 million. Revenue in the last school year was NOK 203 million. 

Sonans 2023/2024
Based on the autumn intake and the spring intake completed in January 2024,
revenue is expected to end in the range of NOK 174-176 million for Sonans for
the school year 2023/2024. The estimate presented in the third quarter 2023
report was NOK 170-175 million. Revenue in the last school year was NOK 255
million.

Profitability for Sonans is expected to be around breakeven in the school year
2023/2024. Lumi Gruppen will continue to adapt the cost structure to the current
market situation.

Please see the attached second-half report for further information.

A webcast and formal presentation of the H2 2023 report are not planned at this
time. To schedule a meeting and Q&A session with management, please send an
email to ir@lumigruppen.no.
For further information please contact:

Martin Prytz, CFO and Head of Investor Relations
E-mail: IR@lumigruppen.no
Mobile: +47 480 14 078

About Lumi: Lumi Gruppen is a leading Norwegian education provider founded in
1989. Today, Lumi Gruppen consists of two main divisions: Sonans and Oslo Nye
Høyskole. Sonans is the market leader in Norway within private candidate exam
preparation courses, and Oslo Nye Høyskole offers high quality bachelor's
degrees within health, social sciences, psychology and business and
administration, both on campus and online.