Lumi Gruppen Half-year Report H2 23

H2 HALF-YEAR REPORT 2023

We facilitate lifelong learning

Contents 3

This is Lumi Gruppen

4

Highlights H2 23 — Lumi Gruppen

5

Key financial and operational figures

8

Interim report — Lumi Gruppen

15

Condensed interim financial statement and notes

34

Alternative performance measures

35

Company information

2

LUMI GRUPPEN Half-year Report H2 23

This is Lumi Gruppen Lumi Gruppen is a leading education provider in Norway, offering high-quality educational services. The group consists of two main operating segments: Sonans and Oslo Nye Høyskole (ONH). higher education. ONH is a private university college established in 2007, acquired by Lumi Gruppen in 2019.

ONH has one campus located in central Oslo, in addition to a strong online offering.

Sonans is Norway’s market leader within high school private candidate exam preparation courses, primarily to help former high school students achieve better exam results and/or complete their high school diploma to enter

Sonans – market leader within private candidate exams

1

Oslo Nye Høyskole – National Student Survey 2022:

1

#

#

Lumi Gruppen Students — Campus vs. Online (2023)

Bachelor programmes in International Studies and Political Science rated 5/5 on overall satisfaction.

Sonans Students — Campus vs. Online (2023)

ONH Students — Campus vs. Online (2023)

49% campus

7 666

24% campus

4 396

students

3

5/5

in overall student satisfaction amongst multidisciplinary University Colleges, #5 of all University Colleges.

38% campus

62% online

Oslo Nye Høyskole – National Student Survey 2022:

3 270

students

51% online

students

76% online

LUMI GRUPPEN Half-year Report H2 23

Highlights for the half-year Sonans

Sonans’ cost base rationalised to align with private candidate demand.

Unsecured subordinated loan agreement of NOK 50 million signed as replacement for cancelled rights issue.

Cash flow

NOK mill.

v 30.9

in cash flow from operations aided by strong credit control measures.

Oslo Nye Høyskole

Improved profitability for ONH due to strong student intake and stable cost development.

EBIT

NOK mill.

4

12.8

Total income

NOK mill.

(32.6)

210.4 ( ) 247.6

LUMI GRUPPEN half-year report H2 23

Key financial and operational figures

NOK MILLION H223

Restated

Restated

CHANGE 22 - 23

H222

2023

2022

H2

YR

Total income

210.4

247.6

422.8

514.6

-15.0%

-17.8%

Payroll expenses

122.5

127.7

219.7

247.9

-4.1%

-11.3%

Payroll expenses in % of revenue

58.2%

51.6%

52.0%

48.2%

6.6 pp

3.8 pp

Total other operating expenses

48.8

57.1

113.4

125.8

-14.5%

-9.9%

23.2%

23.1%

26.8%

24.4%

0.1pp

2.4 pp

39.1

62.8

89.7

141.0

-37.8%

-36.4%

18.6%

25.4%

21.2%

27.4%

-6.9 pp

-6.2 pp

EBIT

12.8

32.6

-235.3

81.7

-60.7%

-388.1%

EBIT margin

6.1%

13.1%

-55.6%

15.9%

-7.1 pp

-71.5 pp

7.6

21.8

284.7

36.1

-65.1%

688.6%

Operating expenses in % of revenue EBITDA EBITDA margin

Non-recurring items Adjusted EBIT

20.4

54.4

49.5

117.8

-62.5%

-58.0%

Adjusted EBIT margin

9.7%

22.0%

11.7%

22.9%

-12.3 pp

-11.2 pp

Net financial items

22.6

16.9

39.1

29.6

33.3%

32.2%

Profit/(loss) before income tax

-9.7

15.7

-274.4

52.1

-162.0%

-627.0%

0.7

4.2

1.8

11.3

-83.7%

-83.7%

Profit/(loss) for the year

-10.4

11.5

-276.2

40.7

-190.3%

-778.4%

Basic/diluted earnings per share

-0.19

0.32

-5.46

1.13

-159.1%

-583.0%

Tax

FINANCIAL POSITION

Capex (fixed assets and development costs)

4.7

8.3

10.1

17.5

-43.7%

-42.6%

Net cash flow from operations

30.9

30.8

33.1

73.2

0.0%

-54.7%

Total assets

1 018

1 190

1 018

1 190

-14.4%

-14.4%

Equity

450

538

450

538

-16.2%

-16.2%

Equity %

44.2%

45.2%

44.2%

45.2%

-1.0 pp

-1.0 pp

Cash position

68

29

68

29

133.1%

133.1%

Net (interest bearing) debt

231

401

231

401

-42.2%

-42.2%

OPERATIONAL KPIS

Number of employees (FTEs)

222

239

222

239

-7.0%

-7.0%

Sick-leave

6.3%

3.4%

5.3%

4.4%

2.9 pp

0.9 pp

9

12

9

12

-25.0%

-25.0%

Number of campuses Sonans Number of campuses ONH Number of students

5

1

1

1

1

0.0%

0.0%

7 666

9 084

7 666

9 084

-15.6%

-15.6%

LUMI GRUPPEN Half-year Report H2 23

NOK MILLION H223

Restated H222

Restated 2023

CHANGE 22 - 23

2022

H2

YR

Revenue

210.4

247.6

422.8

514.6

-15.0%

-17.8%

— Campus

86.5

117.8

188.9

217.1

-26.6%

-13.0%

— Online

123.9

129.8

235.1

171.2

-4.5%

37.3%

Total income

210.4

247.6

422.8

514.6

-15.0%

-17.8%

Payroll expenses

122.5

127.7

219.7

247.9

-4.1%

-11.3%

Payroll expenses in % of operating revenue

58.2%

51.6%

52.0%

48.2%

6.6 pp

3.8 pp

44.1

45.5

96.4

96.6

-3.0%

-0.2%

21.0%

18.3%

22.8%

18.8%

2.6 pp

4 pp

4.7

11.6

17.0

29.2

-59.4%

-41.9%

Other expenses Other expenses in % of operating revenue Bad debt expenses Bad debt expenses in % of operating revenue

2.2%

4.7%

4.0%

5.7%

-2.4 pp

-1.7 pp

Total operating expenses

171.3

184.8

333.1

373.6

-7.3%

-10.9%

EBITDA EBITDA margin

39.1

62.8

89.7

141.0

-37.8%

-36.4%

18.6%

25.4%

21.2%

27.4%

-6.9 pp

-6.2 pp

26.3

26.2

54.6

55.3

0.6%

-1.2%

-

4.0

270.3

4.0

-100.0%

6 582%

Depreciation and amortization Impairment EBIT

12.8

32.6

-235.3

81.7

-60.7%

-388.1%

EBIT margin

6.1%

13.1%

-55.6%

15.9%

-7.1 pp

-71.5 pp

Non-recurring items

7.6

21.8

284.7

36.1

-65.1%

688.6%

Adjusted EBIT

20.4

54.4

49.5

117.8

-62.5%

-58.0%

Adjusted EBIT margin

9.7%

22.0%

11.7%

22.9%

-12.3 pp

-11.2 pp

Number of FTEs

222.5

239.3

222.5

239.3

-7.0%

-7.0%

Sick-leave

6.3%

3.4%

5.3%

4.4%

2.9%

0.9 pp

Total income, second half-year NOKm Lumi Gruppen

Sonans

ONH

160

300

145.0

160

247.6

225

120

210.4

120

123.0 103.0

89.0

150

80

80

75

40

40

0

6

23

22

0

23

22

0

23

22

LUMI GRUPPEN Half-year Report H2 23

We are an important part of the Norwegian educational system and provide opportunities for people who want to take higher education and participate in the workforce.

7

LUMI GRUPPEN Half-year Report H2 23

Strong growth for ONH, and transition for Sonans Executive Summary

H2 2023 Financial statements

The second half of 2023 was one of continued strong growth for Oslo Nye Høyskole (ONH) and transition for Sonans.

Despite lower revenues and EBIT, operating cash flow of NOK 30.9 million was in line with the corresponding period last year, aided by cost savings and improved orderto-cash processes reducing credit losses.

ONH continued its positive development in the second half, achieving robust profitability through a combination of top-line growth and strategic cost initiatives.

Sonans has experienced a challenging market in the second half of 2023 as private candidate volumes further declined. Lower revenues have been partly compensated by cost savings measures and improved credit collection policies. Adjusting for a change in revenue recognition for online courses between the two periods and non-recurring items, Sonans adjusted EBIT was broadly in line with the prior period.

The vocational initiative in Lumi Gruppen is now fully integrated with ONH and the first courses 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.

Based on the completed spring intake, revenues for the school year 2023/24 are expected to be at the upper end of what was communicated in the last interim report.

All financial statements show the period 1 July 2023 to 31 December 2023, compared to the accounts for the period 1 July 2022 to 31 December 2022.

Consolidated Income Statement Total income was NOK 210.4 million, marking a 15.0% decrease from NOK 247.6 million in the previous year.

This decline is primarily attributed to challenges in the private candidate market, with the second half of 2022 also benefitting from a one-off revenue recognition change in Sonans boosting revenues by NOK 20 million.

Oslo Nye Høyskole (ONH) continued its uninterrupted growth over the last four years with 19.3 per cent growth in the second half, driven by new online study programmes and a higher share of recurring revenues for multi-year programmes.

Total operating expenses excluding depreciation and impairment amounted to NOK 171.3 million (184.8) in the second half, reflecting effective cost programmes.

Bad debt expenses decreased to NOK 4.7 million in the second half from NOK 11.6 million last year. The decrease is a result of the credit control measures implemented earlier in 2023.

Changes in the IFRS accounting for marketing expenses resulted in a restatement for both 2022 and 2023. This adjustment led to an additional expense of NOK 1.8 million in 2023, impacting the reported numbers for the second half of the year. Please see note 15 for more details on the change in accounting principle.

Adjusted for the effect from the restatement of marketing expenses and other non-recurring items, the operating expenses were NOK 163.7 million for the second half of 2023.

Depreciation, amortisation, and impairment expenses ended at NOK 26.3 million in the second half compared to NOK 26.2 million last year.

Earnings before interest and tax (EBIT) for the Group ended at NOK 12.8 million in the second half compared to NOK 32.6 million last year. The lower EBIT is a result of the decline in revenue not being fully offset by the cost programmes implemented.

8

LUMI GRUPPEN Half-year Report H2 23

Current and non-current interest-bearing liabilities to financial institutions were NOK 246.5 million at the end of the second half compared to NOK 428.6 million in the same period last year. Current and non-current interestbearing liabilities (subordinated loan) to related parties were NOK 52.0 million excluding accrued interest. The loan was established in 2023 and used for a downpayment of the Nordea facility with the same amount.

Non-recurring expenses were NOK 7.6 million compared to NOK 21.8 million last year. Non-recurring items for the second half are mainly related to: — — — — —

Severance pay – NOK 3.6 million Marketing expenses related to IFRS restatement – NOK 1.8 million Campus restructuring expenses in Sonans – NOK 1 million Fee for early termination of lease contract – NOK 0.9 million Legal fees – NOK 0.4 million

Consolidated statement of financial position The Group’s assets totalled NOK 1 018 million at the end of the second half, a decrease of NOK 172 million from the same period last year. The Group’s equity amounted to NOK 450.4 million, a decrease of NOK 87.3 million compared to the same period last year. The equity ratio was 44.2 per cent (45.2 per cent).

The decline in total assets and equity is mainly a result of the goodwill impairment of NOK 270 million in the first half of 2023. On the other hand, the right-of-use asset and the lease liability increased as a result of new lease contracts entered from 1 July 2023.

9

Consolidated statement of cash flows In the second half, consolidated cash and cash equivalents increased net by NOK 5.4 million, compared to a decrease of NOK 3.2 million last year. As of the balance sheet date, the Group had cash and cash equivalents of NOK 67.6 million, compared to NOK 29.0 million last year.

In addition, the Group had NOK 70.0 million available in the undrawn amount on the rolling credit facility, which is unchanged from last year.

Net cash flow from the Group’s operations was NOK 30.9 million in the second half compared to NOK 30.8 million last year. In the second half, the net working capital effect was positive by NOK 16.3 million, compared to minus NOK 22.4 million in the second half of last year, mainly driven by an improvement in account receivables from stronger credit control.

Net cash outflow from investing activities amounted to NOK 4.5 million in the second half, compared to an outflow of NOK 8.3 million last year.

Net cash outflow from financing was NOK 20.9 million in the second half, compared to a cash outflow of NOK 25.8 million last year. This relates mostly to the payment of the principal portion of lease liabilities in accordance with IFRS 16.

Financing and bank covenant The leverage ratio at the end of the second half was 3.4.

The leverage covenant was 4.5.

According to the loan agreement for the subordinated loan (see note 11), a minimum of 50 per cent shall be repaid no later than 30 June 2024. The Group is presently assessing the repayment options and will disseminate further information on this matter in due course.

LUMI GRUPPEN Half-year Report H2 23

Segment development The Group’s reporting structure comprises two operational segments: Sonans and Oslo Nye Høyskole (ONH). Unless otherwise stated, comments regarding development reflect a comparison between the second half of this year and the same period last year.

Oslo Nye Høyskole is the largest segment in Lumi Gruppen with a 58 per cent share of the revenue in the second half of 2023, up from 42 per cent last year.

Operating revenue increased by 19.3 per cent to NOK 122.7 million (102.8) in the second half. 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.

Operating expenses ended at NOK 84.4 million compared to 80.2 million last year. The increase is mainly related to the annual salary adjustment which on average was 5.4 per cent.

EBIT ended at NOK 31.5 million (25.7% of revenue) compared to NOK 17.7 million (17.3%) last year. EBIT was affected by the sale of ONH’s collection portfolio on a non-recourse basis last year which led to a positive gain and reduced bad debt expenses by around NOK 2 million.

Excluding this item, the EBIT was NOK 15.7 million last year (15.3%).

10

To cater for future growth, ONH signed a lease agreement for new premises at Adamstuen (previously Veterinærhøyskolen) in January 2024. The move is expected to incur an additional NOK 8-10 million per year of premises costs starting in 2025. In addition, there are expected to be some one-off expenses related to the move to new premises where the majority will be incurred in 2024.

ONH has submitted an application to NOKUT for institutional accreditation, aiming to attain selfaccreditation 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 is the other segment in Lumi Gruppen with a 42 per cent share of the revenue in the second half of 2023, down from 58 per cent last year.

Operating revenue decreased by 38.5 per cent to NOK 89.0 million (144.7). 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.

Operating expenses ended at NOK 73.7 million compared to 98.7 million last year. The decrease is related to the cost programme implemented and lower bad debt expenses that ended 77 per cent lower than last year at NOK 2.4 million in the second half of 2023 compared to NOK 10.4 million last year.

EBIT ended at minus NOK 2.3 million compared to NOK 22.9 million (15.9%) last year.

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.

LUMI GRUPPEN Half-year Report H2 23

Business outlook

Market outlook

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

Cost programmes for ONH and Sonans were successfully implemented last year and will continue to yield further benefits in the range of NOK 12-18 million for the Group in the school year 2024/2025.

The market development for Lumi Gruppen is correlated and connected to several macroeconomic drivers including demand for higher education and the strength of the labour market.

The labour market has been strong the past year, with particularly high participation among the younger people that Lumi Gruppen targets. This remains the case, but a weakening of the job market could lead to higher demand for Lumi’s services going forward.

Lumi Gruppen is closely following the process regarding the recommendations published by the Admission Committee in December 2022. The Ministry of Education and Research announced in October 2023 that it will introduce a parliamentary white paper on the admission rules matter during the spring of 2024.

The political process means that implementation of any changes will take time, and the first school year with a new system implemented is expected to be several years from now. The Group will comment on how these may affect Lumi Gruppen, whether positive or negative, when further clarity is offered by parliament in terms of a formal proposal or similar.

Oslo Nye Høyskole (ONH) Based upon 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 Q3 2023 report was NOK 227-232 million. Revenue in the last school year was NOK 203 million.

Sonans Based upon 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 Q3 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.

11

LUMI GRUPPEN Half-year Report H2 23

Shareholder information

Disclaimer

The Group’s share capital was NOK 23.2 million as of 31 December 2023, consisting of 55 241 433 ordinary shares, each with a par value of NOK 0.42. All the shares are fully paid and have equal rights.

Lumi Gruppen owned 193 814 treasury shares as at the balance sheet date. The number of shareholders as at 31 December 2023 was 333, of which the top 20 shareholders held 90.4 per cent of the shares.

This report includes forward-looking statements which are based on our current expectations and projections about future events. Statements herein, other than statements of historical facts, regarding future events or prospects, are forward-looking statements. All such statements are subject to inherent risks and uncertainties, and many factors can lead to actual profits and developments deviating substantially from what has been expressed or implied in such statements. As a result, you should not place undue reliance on these forward-looking statements.

Events after the balance sheet date There have been no material events after the reporting period that might significantly affect the consolidated interim financial statements for the second half of 2023.

Responsibility Statement We confirm, to the best of our knowledge, that the condensed set of financial statements for the period 1 January to 31 December 2023 has been prepared in accordance with IAS 34 Interim Financial Reporting and gives a true and fair view of the Group’s assets, liabilities, financial position and profit or loss. We also confirm, to the best of our know¬ledge, that the interim management report includes a fair review of important events that have occurred during the financial year and their impact on the unaudited condensed set of financial statements, the principal risks and uncertainties and major related party transactions.

Oslo, 15 February, 2024 Approved by the Board of Directors and Management

Helge Midttun Bente Sollid Storehaug Ashkan Senobari Chair

Giles Smyth

Fred Lundqvist Anne Dahle

Martin Prytz CFO

12

Erik Brandt CEO

LUMI GRUPPEN Half-year Report H2 23

Condensed interim financial statement and notes

13

LUMI GRUPPEN Half-year Report H2 23

Consolidated statement of profit or loss

Restated Restated NOK 1000 Note H223 H222 FY23 FY22

Revenue

2,3

209 765

245 874

420 866

511 915

Government grants

-

834

694

1 528

Other operating income

614

874

1 232

1 171

Total income

210 379

247 582

422 792

514 614

Payroll expenses

122 468

127 673

219 730

247 856

26 306

26 153

54 642

55 282

Impairment 4,6 4 046 270 344

4 046

Depreciation and amortisation expenses

4,5,6

48 801

57 079

113 354

125 774

3

197 574

214 951

658 071

432 959

Operating profit/loss(-) (EBIT)

12 805

32 631

-235 279

81 655

Other operating expenses Total operating expenses

Interest income

2 320

583

2 337

587

Financial income

486

201

1 508

472

Interest expense

-19 274

-15 062

-34 703

-27 168

Financial expense

-6 084

-2 638

-8 262

-3 480

Net financial items

-22 552

-16 915

-39 120

-29 589

Profit/loss(-) before income tax

-9 746

15 715

-274 399

52 066

Income tax

682

4 169

1 848

11 346

Profit/loss(-) for the period

-10 428

11 546

-276 247

40 720

Basic/diluted earnings per share (NOK)

-0.19

0.32

-5.46

1.13

Statement of comprehensive income

Restated Restated NOK 1000 Note H223 H222 FY23 FY22 OTHER COMPREHENSIVE INCOME

Items not reclassified to profit or loss: Remeasurement of defined benefit pension liabilities - decrease/(increase)

-

-

Related tax effects

-

1 570

-

-

-

-345

Other comprehensive income for the period -

-

-

1 224

Total comprehensive income for the period -10 428

11 546

-276 247

41 944

11 546

-276 247

41 944

TOTAL COMPREHENSIVE INCOME IS ATTRIBUTABLE TO

Owners of Lumi Gruppen AS -10 428

14

LUMI GRUPPEN Half-year Report H2 23

Consolidated statement of financial position

Restated ASSETS NOK 1000 Note 31.12.23 31.12.22 NON-CURRENT ASSETS

9 493

10 394

Goodwill 4

686 688

957 032

Other intangible assets

4

28 895

27 895

Right-of-use assets

6

184 595

123 964

Office machinery and equipment

5

7 675

10 415

Investments in shares

1 679

1 619

Total non-current assets

919 025

1 131 319

27 083

22 601

Deferred tax asset

CURRENT ASSETS

Trade receivables 7 Earned, not invoiced Other current receivables

-

1 826

8

4 313

4 991

Cash and bank deposits

67 647

29 031

Total current assets

99 042

58 448

Total assets

1 018 067

1 189 767

15

LUMI GRUPPEN Half-year Report H2 23

Consolidated statement of financial position

Restated EQUITY AND LIABILITIES NOK 1000 Note 31.12.23 31.12.22 EQUITY

Share capital 9

23 201

15 201

Share premium

651 218

470 218

Treasury stock

-81

-81

Retained earnings

-223 913

52 360

Total equity

450 425

537 698

NON-CURRENT LIABILITIES

Non-current interest-bearing liabilities

11

257 452

418 592

Non-current lease liabilities

6

154 825

99 955

Total non-current liabilities

412 277

518 546

CURRENT LIABILITIES

Current interest-bearing liabilities

11

41 000

10 000

Current lease liabilities

6

45 355

38 408

Trade creditors

8 236

5 230

Tax payable

946

14 911

Public duties payable

15 680

16 137

Unearned revenue

6 689

11 075

37 459

37 763

Other current debt Total current liabilities

155 364

133 523

Total liabilities

567 642

652 070

Total equity and liabilities

1 018 067

1 189 767

16

LUMI GRUPPEN Half-year Report H2 23

Consolidated statement of cash flows

Restated Restated NOK 1000 Note H223 H222 FY23 FY22 CASH FLOW FROM OPERATIONS

Profit /loss(-) before income taxes

-9 746

15 715

-274 399

52 066

-3 913

320

-14 913

-16 180

Adjustments for — Taxes paid in the period — Gain/loss from sale of fixed assets

29

-

29

-

— Interest expense

19 880

16 142

36 852

28 464

— Interest paid

-11 339

-6 339

-24 991

-18 014

— Interest paid - leasing

-6 669

-3 165

-9 896

-6 635

— Interest income

-2 320

-583

-2 337

-587

— Interest received

2 320

583

2 337

587

— Depreciation

26 306

26 153

54 642

55 282

— Impairment

-

4 046

270 344

4 046

— Change in trade receivable, earned not invoiced and unearned revenue

-3 882

-34 696

-7 042

-26 928

— Change in trade creditors

1 464

-5 625

3 006

3 178

— Diff. in expensed pensions and payments in/out of the pension scheme

-

334

-

-415

— Change in other current assets and liabilities

18 727

17 962

-498

-1 632

Net cash flow from operations

30 857

30 847

33 134

73 232

Proceeds from sale of fixed assets

131

-

131

-

Purchase of property, plant and equipment

-2 386

-1 280

-2 932

-3 779

Purchase of intangible assets and activated development cost

-2 291

-7 023

-7 124

-13 743

CASH FLOW FROM INVESTMENTS

Payment to buy shares in other companies

-

-

-85

-60

Net cash flow from investments

-4 546

-8 303

-10 010

-17 582

Proceeds from the issuance of new liabilities to shareholders

52 000

-

52 000

-

Payment of principal portion of lease liabilities

-19 595

-25 774

-41 818

-44 124

Repayment of liabilities to financial institutions

-50 000

-

-180 000

-10 000

Repayment of other loans

-

-

-2 413

-

CASH FLOW FROM FINANCING

New equity received

-

-

200 000

-

Costs directly booked in equity

-2 022

-

-11 000

-

Transaction costs

-1 277

-

-1 277

-

Payment of dividend

-

-

-

-36 000

Net cash flow from financing

-20 894

-25 774

15 492

-90 124

Exchange gains / (losses) on cash and cash equivalents

-

-

-

-

Net change in cash and cash equivalents

5 417

-3 230

38 616

-34 474

Cash and cash equivalents at the beginning of the period

62 230

32 260

29 031

63 505

Cash and cash equivalents at the end of the period

67 647

29 030

67 647

29 030

Unused operational credit facilities in addition

70 000

70 000

70 000

70 000

17

LUMI GRUPPEN Half-year Report H2 23

Consolidated statement of changes in equity

NOK 1000

SHARE CAPITAL

SHARE PREMIUM

TREASURY STOCK

OTHER RESERVES

RETAINED EARNINGS

TOTAL

Balance at 1 January 2023

15 201

470 218

-81

-

52 360

537 698

Capital increase 16.03.2023

7 000

168 000

-

-

-

175 000

Capital increase 15.05.2023

1 000

24 000

-

-

-

25 000

-

-11 000

-

-

-

-11 000

2023

Costs booked directly in equity Profit /loss(-) for the year

-

-

-

-

-276 247

-276 247

Other equity changes

-

-

-

-

-25

-25

23 201

651 218

-81

-

-223 913

450 425

Equity at 31 December 2023 2022

15 201

470 218

-81

-1 224

60 698

544 812

Restatement of marketing expenses

Balance at 31 December 2021

-

-

-

-

-13 048

-13 048

Balance at 1 January 2022 restated

15 201

470 218

-81

-1 224

47 650

531 764

-

-

-

1 224

-

1 224

OCI Dividend

-

-

-

-

-36 000

-36 000

Profit/loss(-) for the year restated

-

-

-

-

40 720

40 720

Other equity changes

-

-

-

-

-10

-10

15 201

470 218

-81

-

52 360

537 698

Equity at 31 December 2022 restated

18

LUMI GRUPPEN Half-year Report H2 23

Notes to the Condensed interim financial statements 1 Organisation and basis of preparation Lumi Gruppen AS (the Company or Lumi Gruppen) is the parent company of the Lumi Gruppen (Lumi or the Group) and is a limited liability company incorporated and domiciled in Norway, with its head office at Bislett, Oslo.

The Company is listed on Euronext Growth stock exchange in Oslo, Norway and has the ticker “LUMI”.

Lumi Gruppen is a leading player in the education market in Norway. The Group consists of the parent company Lumi Gruppen AS and its subsidiaries Lumi Services AS, Sonans Privatgymnas AS, Oslo Nye Høyskole AS, ONH Education AS and Norwegian School of Technology AS. The operating companies in the Group are Sonans Privatgymnas AS, Oslo Nye Høyskole AS and ONH Education AS. Lumi Services AS is a company that organises shared services like IT, marketing and finance on behalf of the operating companies.

The accounting policies applied by the Group in these consolidated interim financial statements are the same as those applied by the Group in its consolidated financial statements for the year ended 31 December 2022, unless otherwise stated.

19

Estimates, judgements and assumptions The preparation of interim condensed financial statements involves the use of accounting estimates. Actual results may differ from these estimates. Management is required to exercise judgment in applying the Group’s accounting policies.

Management has used estimates and assumptions that have affected assets, liabilities, revenues, expenses and information on potential liabilities. Future events may lead to these estimates being changed. Estimates and their underlying assumptions are reviewed on a regular basis and are based on best estimates and historical experience.

Changes in accounting estimates are recognised during the period when the changes take place. If the changes also apply to future periods, the effect is divided among the present and future periods. Management has, when preparing the interim financial statements, made certain significant assessments based on critical estimates and significant judgment when it comes to application of the accounting principles.

LUMI GRUPPEN Half-year Report H2 23

2 Revenue Lumi Gruppen earns revenue from educational services including one university college and several private candidate schools across Norway. Services are delivered both on campus and online, and delivered over time to the students. Educational service revenue is distributed according to the individual course sold. Courses for a single semester are distributed over 4 to 6 months while courses running over two semesters are distributed over 10 to 12 months.

From 1 January 2023, the Group changed its principles for revenue recognition for full-year contracts in case there is a low probability that the Group will collect the considerations. The revenue is not recognised until the

NOK 1000

consideration is received. The probability is determined to be low when no consideration is collected in the first semester of the school year.

Invoicing for the educational services is done at the beginning of each school semester, in August/September and January. Invoices sent in August/September are for both the semester and for the entire school year fees. This creates the deferred revenue (unearned income) post in the balance sheet (a contract liability). This contract liability is always current, as the revenue will be earned within a maximum of 9 months after the date of the invoice.

H223

H222

FY23

FY22

DISAGGRETATING OF REVENUE

Education 209 765

245 874

420 866

511 915

— of which campus

84 037

113 991

183 946

272 493

— of which online

125 728

131 883

236 919

239 422

Government grants

-

834

694

1 528

Other income

614

874

1 232

1 171

Total revenue 210 379

247 582

422 792

514 614

In H2, NOK 3.6 million (full year NOK 12.7 million) related to full-year contracts was not recognised in Sonans due to low probability of collecting the amounts owed. In ONH all such revenue was recognised. The revenue not recognised is booked as a liability in the balance sheet and impaired in line with the ECL-model.

20

LUMI GRUPPEN Half-year Report H2 23

3 Operating segments

OTHER/ TOTAL

NOK 1000 SONANS

OSLO NYE HØYSKOLE NTECH

HEADQUARTER

ELIMINATIONS AND IFRS

CONTINUING OPERATIONS

H2 2023

89 009

122 656

-

19 310

-20 596

210 379

-

-

-

19 310

-19 310

-

Total expenses

73 675

84 398

8 110

25 682

-20 596

171 268

— of which management fee

12 720

5 960

180

450

-19 310

-

Depreciation and amortisation

17 681

6 764

662

1 200

-

26 306

-

-

-

-

-

-

-2 346

31 495

-8 772

-7 571

-

12 805

144 687

102 820

-

21 113

-21 038

247 582

-

-

-

21 278

-21 278

-

Total expenses

98 728

80 170

953

25 875

-20 974

184 752

— of which management fee

17 928

2 288

750

312

-21 278

-

Total revenue — of which management fee

Impairment EBIT H2 2022 Restated

Total revenue — of which management fee

Depreciation and amortisation

19 036

4 946

9

2 168

-5

26 153

Impairment

4 046

-

-

-

-

4 046

EBIT

22 877

17 704

-962

-6 930

-59

32 631

199 755

223 636

-

33 827

-34 426

422 792

-

-

-

33 140

-33 140

-

Total expenses

158 547

149 890

8 447

50 627

-34 426

333 085

— of which management fee

22 560

9 710

260

610

-33 140

-

Depreciation and amortisation

38 929

12 681

666

2 365

-

54 642

-

-

-

-

270 344

270 344

2 278

61 065

-9 114

-19 164

-270 344

-235 279

320 347

194 027

-

42 313

-42 073

514 614

-

-

-

42 313

-42 313

-

FY 2023

Total revenue — of which management fee

Impairment EBIT FY 2022 Restated

Total revenue — of which management fee Total expenses

215 964

147 404

2 619

49 717

-42 073

373 630

— of which management fee

35 853

4 538

1 500

422

-42 313

-

Depreciation and amortisation

42 302

9 840

9

2 332

800

55 282

Impairment

4 046

-

-

-

-

4 046

EBIT

58 034

36 783

-2 628

-9 736

-800

81 655

21

LUMI GRUPPEN Half-year Report H2 23

4 Intangible assets Goodwill

NOK 1000

OSLO NYE HØYSKOLE SONANS

TOTAL

COST

Cost at 31 December 2022

211 688

745 344

957 032

Additions -

-

-

Additions through acquisitions -

-

-

Disposals -

-

-

745 344

957 032

Cost at 31 December 2023

211 688

AMORTIZATION AND IMPAIRMENT

Accumulated at 31 December 2022 -

-

-

Impairment -

270 344

270 344

Amortization Accumulated at 31 December 2023 Carrying amount at 31 December 2023

Amortization method Estimated useful life

22

-

270 344

270 344

211 688

475 000

686 688

n/a

n/a

n/a

Impairment tests Impairment tests Impairment tests

As stated in the annual report for FY 2022, goodwill is assessed for impairment annually, and, as per IAS 36, more frequently if indicators of impairment are identified.

Please see the 2022 annual report for a description of the accounting principles and identified cash generating units (CGUs) for goodwill in Lumi Gruppen.

Goodwill was assessed for impairment on 31 December 2023. The CGUs assessed are in line with the CGUs described in the annual report. The key assumptions are updated to reflect the current situation, and the DCF to reflect the updated forecast.

The autumn intake for CGU Sonans came in at a lower level than expected, and as a result of this an impairment test was performed for this CGU at 30 June 2023. No impairment indicators were identified for CGU Oslo Nye Høyskole, and no impairment test was performed for this CGU at 30 June 2023.

Result of the impairment test 30 June 2023 The estimated recoverable amount of the goodwill related to CGU Sonans was NOK 475 million. As this was below the carrying value of NOK 745 million, an impairment of NOK 270 million was recognised at 30 June 2023.

-

-

Result of the impairment test 31 December 2023 For CGU Sonans, no further impairment is recognised as a result of the impairment test performed at 31 December 2023. For CGU ONH no impairment is recognised in 2023.

With respect to the impairment testing made for the goodwill allocated to the CGU Sonans, the DCF is based upon the assumption that the private candidate market over the coming years will normalise and eventually return closer towards historical levels in terms of student volumes.

Further, it is expected that a material share of the cost reduction programme implemented in 2022 and further cost measures implemented in 2023 will continue to have an impact during the coming years since these measure includes changes in operations that are not temporary in nature. And lastly, Sonans will continue to develop its educational offering, and this will also include commercial aspects that will reduce the impact of migration across channels. The DCF is based on budget for the school year 23/24 and prognosis are made for the following five school years. The prognosis period takes into account growth in prices, salaries and other cost in line with the inflation target of 2.5%. Payroll cost increases proportional to the increase in student volumes, as student volumes drives the

LUMI GRUPPEN Half-year Report H2 23

number of classes and teacher FTEs. The prognosis set by management shows a return to historical levels of EBITDA for Sonans given a return of the private candidate market towards historical levels combined with implemented cost measures in Sonans. Impairment testing has indicated no existing impairment requirements for goodwill.

Key assumptions with the measurement of value in use (Enterprise value) Measurement of the enterprise value for the CGUs is most sensitive to the following assumptions: Discount rate The discount rate is based on a weighted average cost of capital methodology (WACC). The nominal discount rate is based on the Group’s estimated capital cost measured as the weighted average of the costs for the Group’s equity and debt. The WACC considers the interest rate of the debt, the risk-free interest rate, the debt-to-total-assets ratio, risk premium and an equity risk premium. Beta and debt ratio are based on an average of the applied industry group and a peer group.

Growth rates Growth rates applied in the impairment testing for goodwill are based on management’s expectations for market developments. Based on available information and management’s market expertise, the expectation is a slight increase in growth over the coming years with a flat and moderate growth when calculating the terminal value in the DCF model. Management expectations are based on historical trends and publicly available industry analyses. As is the case with expectations with an element of uncertainty, there can be a need for adjustments to the estimates in future periods.

The following key assumptions were used for the valuein-use calculations for CGU Sonans and ONH at 31 December 2023: — —

WACC (after tax) 10.9% (11.3% at 31 December 2022) Terminal growth rate 2.75% (3.22% at 31 December 2022)

Sensitivity analysis The Group has prepared a sensitivity analysis of the impairment tests to changes in the key assumptions which are the terminal growth rate and WACC. This analysis indicates that reasonable changes in the assumptions will not cause the aggregate carrying amount to exceed the recoverable amount.

Other intangible assets

STUDENT DEVELOPMENT NOK 1000

CONTRACTS COST

TOTAL

COST

Cost at 31 December 2022

33 000

33 205

66 205

Additions

-

7 124

7 124

Additions through acquisitions

-

-

-

Disposals

-

-

-

Cost at 31 December 2023

33 000

40 329

73 329

Accumulated at 31 December 2022 33 000

5 310

38 310

Impairment -

-

-

AMORTIZATION AND IMPAIRMENT

Amortisation

-

6 125

6 125

Accumulated at 31 December 2023

33 000

11 435

44 435 28 895

Carrying amount at 31 December 2023 Amortization method Estimated useful life

23

-

28 895

Degressive

Linear

2-4 years

5 years

LUMI GRUPPEN Half-year Report H2 23

5 Property, plants and equipment

NOK 1000

OFFICE LEASEHOLD MACHINERY & IMPROVEMENTS ART EQUIPMENT

TOTAL

COST

Cost at 31 December 2022

13 246

376

46 258

59 880

Additions

1 354

-

1 579

2 932

Additions through acquisitions

-

-

-

-

Disposals

-

-

296

296

Cost at 31 December 2023

14 600

376

47 541

62 517

Accumulated at 31 December 2022

12 417

-

37 049

49 466

Depreciation

456

-

5 057

5 513

DEPRECIATIONS AND IMPAIRMENT

Impairment

-

-

-

-

Disposals

-

-

136

136

Accumulated at 31 December 2023

12 873

-

41 970

54 843

Carrying amount at 31 December 2023

1 727

376

5 571

7 675

Linear

n/a

Linear

Estimated useful life In line with lease contract

3-5 years

Depreciation method

6 Leasing The Group leases are primarily office and school buildings and office equipment. Short-term and low-value leases are excluded from the financial lease accounting.

Right-of-use assets are leased assets recognised in the statement of financial position in accordance with IFRS 16 and are primarily buildings and office equipment.

Right-of-use assets are depreciated over the shorter of the asset’s useful life and the lease term on a straight-line basis. The right-of-use assets are reviewed for potential impairment whenever events or changes in circumstances indicate that the carrying amount of an asset exceeds its recoverable amount.

24

LUMI GRUPPEN Half-year Report H2 23

Amounts recognised in the balance sheet NOK 1000 31.12.23

31.12.22

Right-of-use assets Premises

182 313

120 100

Equipment

2 282

3 864

Total

184 595

123 964

Depreciation method

Linear

Linear

In line with

lease contract

In line with lease contract

Useful life Lease liabilities Current

45 355

38 408

Non-current

154 825

99 955

Total

200 180

138 362

Amounts recognised in the statement of profit or loss

H223

H222

FY23

FY22

20 285

21 374

43 005

45 057

Impairment of right-of-use assets

-

4 046

-

4 046

Settlement with termination

-

-

-

-

6 669

3 157

9 896

6 627

NOK 1000

Depreciation of right-of-use assets

Interest expense

NOK 1000

RIGHT-OF-USE ASSETS

COST

Cost at 31 December 2022 Additions

296 087

103 700

Additions through acquisitions

-

Disposals

65

399 723

172 124

Depreciation

43 005

Impairment

-

Cost at 31 December 2023 DEPRECIATIONS AND IMPAIRMENT

Accumulated at 31 December 2022

Disposals

-

Accumulated at 31 December 2023

215 128

Carrying amount at 31 December 2023

184 595

Depreciation method

Linear

Estimated useful life

25

In line with lease contract

LUMI GRUPPEN Half-year Report H2 23

7 Trade receivables Trade receivables at 31 December 2023 and 31 December 2022 NOK 1000 31.12.23

31.12.22

Trade receivables

66 321

36 459

— of which Sonans

49 551

28 659

Loss allowance

-39 238

-13 858

— of which Sonans

-31 807

-11 197

Total trade receivable, net 27 083

22 601

8 Other receivables

Restated NOK 1000 31.12.23 31.12.22

Prepaid expenses

4 108

4 198

Other debtors

204

793

Total other receivables

4 313

4 991

From the financial year 2023, Lumi Gruppen has changed its accounting principle for marketing expenses. Previously, marketing expenses were booked according to a matching principle where costs were expensed in the same period as the related income. Accordingly, marketing expenses incurred were booked as prepaid expenses and expensed during the semester(s) the marketing campaign targeted for recruitment. This principle is now changed, and the new

principle is to expense marketing expenses when they occur. The change made aligns the Group’s principles to IFRS. Previous periods are restated to be comparable, and the effect is booked directly to equity for the ingoing balance of 2022. The effect of the change in accounting principle at the balance sheet date 31 December 2022 was the following:

NOK 1000

Prepaid expenses, reported 2022

31.12.22

16 349

— of which prepaid marketing expenses

12 151

Prepaid expenses, restated 2023

4 198

26

LUMI GRUPPEN Half-year Report H2 23

9 Share capital and shareholder information Parent company (Lumi Gruppen AS)

NOK

NUMBER

PAR VALUE

CAPITALISED

0.42

23 201 402

SHARE CAPITAL

Ordinary shares

55 241 433

Cost at 31 December 2023

55 241 433

At 31 DECEMBER 2023

23 201 402

TYPE OF ORDINARY

ACCOUNT SHARES

%

SHAREHOLDERS

The Bank of New York Mellon SA/NV

Nominee

20 504 212

37.1

Euroclear Bank S.A./N.V.

Nominee

7 511 792

13.6

Pareto Aksje Norge Verdipapirfond

Ordinary

3 772 937

6.8

J.P. Morgan SE

Nominee

3 046 609

5.5

Verdipapirfondet Holberg Norge

Ordinary

2 733 333

4.9

The Northern Trust Comp, London Br

Nominee

2 189 896

4.0

Forsvarets Personellservice

Ordinary

1 550 540

2.8

Melesio Invest AS

Ordinary

1 420 709

2.6

Valorem AS

Ordinary

1 217 000

2.2

CMDC AS

Ordinary

980 000

1.8

Wenaas EFTF AS

Ordinary

885 714

1.6

VJ Invest AS

Ordinary

608 198

1.1

Ginko AS

Ordinary

600 000

1.1

Dyvi Invest AS

Ordinary

593 696

1.1

Cawa Invest AS

Ordinary

520 000

0.9

Cortex AS

Ordinary

440 000

0.8

Goldman Sachs International

Nominee

383 685

0.7

Varner Equities AS

Ordinary

366 216

0.7

Bit For Bit Huset AS

Ordinary

325 895

0.6

Jacob Hatteland Holding AS

Ordinary

290 780

0.5

Top 20 shareholder/nominee

49 941 212

90.4

Other

5 300 221

9.6

Lola Bidco AS controls the majority of the shares in Lumi Gruppen AS, with an ownership of 28 016 004 shares (50.7%) through the nominee accounts The Bank of New York Mellon SA/NV and Euroclear Bank S.A./N.V.

27

LUMI GRUPPEN Half-year Report H2 23

10 Earnings Per Share (EPS)

Restated Restated

H223 H222 FY23 FY22

Profit for the period (in NOK 1000)

-10 428

11 546

-276 247

40 720

Average number of shares (excl. own shares)

55 047 619

36 000 000

50 566 210

36 000 000

Earnings per share (NOK)

-0.19

0.32

-5.46

1.13

11 Liabilities to financial institutions Current and non-current liabilities to financial institutions are financial liabilities, primarily bank loans, and are recognised initially at fair value and subsequently at amortised cost using the effective interest rate method to measure interest expense on the loans. In connection with the private placement that took place in March 2023, the Group received a commitment from its bank for a new three-year financing agreement. Please see the Q2 report and stock exchange notice for more information.

Lumi Gruppen announced additional changes to its financing agreement as a consequence of the change of control that took place in August 2023 with Hanover Investors achieving a 50.7% stake in the Company. The additional changes include the following terms: — Repayment of NOK 50 million on the existing NOK 300 million facility with proceeds from the rights issue — From one to two term loans (Term Loan A (“TLA”) of NOK 50 million and Term Loan B (“TLB”) NOK 200 million) — Current revolving credit facility (“RCF”) of NOK 70 million to remain in place — Changes in margin ratchet with separate margins for TLA and TLB — Margin range for the total facility (NOK 300 million) was 220 bps to 345 bps — TLA New and RCF: 300 bps to 450 bps — TLB New: 350 bps to 500 bps — Arrangement and change of control waiver fee of NOK 5.2 million — Amendment fee of 0.15% of the total facilities

28

A covenant reset has also been agreed with the following covenant profile for the current school year and thereafter: — Covenant reset (NIBD / EBITDA) for quarters Q3 2023 – Q2 2024: 3.5x, 4.5x, 3.6x and 5.1x — Thereafter, flat at 3.0x in Q1 and Q3, and 4.0x in Q2 and Q4 to account for seasonal working capital fluctuations.

On 17 November 2023, Lumi Gruppen signed a new unsecured subordinated loan agreement for loan financing in the amount of NOK 52 million provided by Lola Bidco AS, securing the repayment of NOK 50 million to Nordea. The loan has been entered into on an arms-length basis and with terms in line with the Nordea Term Loan Facility A. As a consideration for the loan, an annual interest rate will be charged, subject to adjustments to ensure that the interest rate payable under the loan agreement shall correspond to the interest rate that would have been payable if the loan had remained outstanding under (and added to) the Nordea Term Loan A Facility (the facility with the lowest margin across the Nordea Facilities) for the same period. The Company shall repay an amount equal to the lower of (a) the then outstanding loan and all other amounts then outstanding under the loan agreement and (b) NOK 26 000 000 plus any accrued interest on the loan (whether compounded or not) as at the date of such repayment, on the earlier of (i) the date occurring one week prior to the annual general meeting of the Company for the year 2024 and (ii) 30 June 2024. The Company shall repay the then remaining outstanding loan together with all accrued interest on 16 September 2026 or, if later, the first business day after the termination date under the Nordea Loan Facility

LUMI GRUPPEN Half-year Report H2 23

NOK 1000 31.12.23

31.12.22

NON-CURRENT INTEREST-BEARING LIABILITIES

Non-current liabilities to financial institutions

231 452

418 592

Current liabilities to financial institutions

15 000

10 000

Non-current liabilities to shareholders

26 000

-

Current liabilities to shareholders

26 000

-

Total interest-bearing liabilities

298 452

428 592

302 000

430 000

Capitalised bank fees

-3 548

-1 408

298 452

428 592

SPECIFICATION OF INTEREST-BEARING LIABILITIES

Total amount borrowed Total interest-bearing liabilities COLLATERAL AND GUARANTEES

Nominal value of debt with collateral security Liabilities to financial institutions

250 000

430 000

Total

250 000

430 000

Book value of collateral pledged Accounts receivable

27 083

22 601

Office machinery and equipment

7 675

10 415

Total

34 758

33 016

12 Related parties Balances and transactions between the Company and its subsidiaries, which are related parties to the Company, have been eliminated on a consolidated basis.

On 17 November 2023 Lumi Gruppen entered into a loan agreement with majority shareholder Lola Bidco AS of NOK 52 million. The loan has been entered into on an arms-length basis and with terms in line with the Nordea

29

Term Loan Facility A. Refer to note 11 for further details on the loan agreement between Lumi Gruppen and Lola Bidco AS. There are no other significant related party transactions for Lumi Gruppen as of 31 December 2023.

LUMI GRUPPEN Half-year Report H2 23

13 Subsidiaries

OWNERSHIP/

LOCATION VOTING RIGHT

NAME

Lumi Services AS Oslo

100

Sonans Privatgymnas AS Oslo

100

ONH Education AS Oslo

100

Oslo Nye Høyskole AS Oslo

100

Norwegian School of Technology Oslo

100

Subsidiaries Lumi Bidco AS and Lumi Services AS merged with effect from 1 January 2023 with Lumi Services AS being the acquiring entity.

14 Contingent liabilities There are no contingent liabilities as of 31 December 2023.

15 Change in accounting principle for marketing expense From the financial year 2023, Lumi Gruppen has changed its accounting principle for marketing expenses. Previously marketing expenses were booked according to a matching principle where costs were expensed in the same period as the related income. Accordingly, marketing expenses incurred were booked as prepaid expenses and expensed during the semester(s) the marketing campaign targeted for recruitment. This principle is now changed, and the new

30

principle is to expense marketing expenses when they occur. The change made aligns the Group’s principles to IFRS. Previous periods are restated to be comparable, and the effect is booked directly to equity in the ingoing balance for 2022. The effect of the change in principle in the statements of profit and loss and statement of financial position is presented in the table below.

LUMI GRUPPEN Half-year Report H2 23

NOK 1000

Q122

Q222

Q322

Q422

FY22

Q123

Q223

Q323

Reported other operating expenses in quarterly/annual reports

34 608

38 097

22 593

35 053

130 351

29 991

34 563

21 080

Adj. for changes in accounting principle

-5 228

1 219

3 525

-4 093

-4 577

-2 037

596

7 041

Restated other operating expenses

29 380

39 316

26 118

30 960

125 774

27 954

35 159

28 121

Reported EBIT in quarterly/annual reports 14 343

30 673

20 097

12 004

77 078

6 118

-254 203

10 717

Adj. for changes in accounting principle

5 228

-1 219

-3 525

4 093

4 577

2 037

-596

-7 041

Restated EBIT

19 571

29 454

16 572

16 097

81 655

8 155

-254 799

3 676

Reported profit/loss(-) before tax in quarterly/annual reports

8 104

24 239

11 119

4 067

47 489

-2 693

-261 960

1 693

Adj.for changes in accounting principle

5 228

-1 219

-3 525

4 093

4 577

2 037

-596

-7 041

Restated profit/loss(-) before tax

13 332

23 020

7 594

8 160

52 066

-656

-262 556

-5 348

Reported tax expense in quarterly/annual reports

1 614

4 681

2 900

1 144

10 339

-693

1 860

388

Adj. for changes in accounting principle

1 150

-268

-776

900

1 007

448

-131

-1 549

Restated tax expense

2 764

4 413

2 124

2 044

11 346

-245

1 729

-1 161

Reported profit/loss(-) after tax in quarterly/annual reports

6 490

19 558

8 219

2 922

37 150

-2 000

-263 820

1 305

Adj.for changes in accounting principle

4 078

-951

-2 750

3 192

3 570

1 589

-465

-5 492

Restated profit/loss(-) after tax

10 568

18 607

5 469

6 114

40 720

-411

-264 285

-4 187

31.12.21

31.03.22

30.06.22

30.09.22

31.12.22

31.03.23

30.06.23

30.09.23

Reported other current receivables in quarterly/annual reports

20 655

18 103

14 455

22 207

17 142

16 940

16 544

21 745

Adj. for changes in accounting principle

16 728

11 500

12 719

16 244

12 151

10 114

10 710

17 751

Restated other current receivables

3 927

6 603

1 736

5 963

4 991

6 826

5 834

3 994

Reported deferred tax asset in quarterly/annual reports

2 657

2 397

2 713

2 418

7 721

7 850

7 830

7 812

Adj. for changes in accounting principle

3 680

2 530

2 798

3 574

2 673

2 225

2 356

3 905

Restated deferred tax asset

6 337

4 927

5 511

5 992

10 394

10 075

10 186

11 717

Reported equity in quarterly/annual reports

544 812

552 526

536 112

544 573

547 175

713 160

472 353

473 657

NOK 1000

Adj. for changes in accounting principle

-13 048

-8 970

-9 921

-12 670

-9 478

-7 889

-8 354

-13 846

Restated equity

531 764

543 556

526 191

531 903

537 697

705 271

463 999

459 811

31

LUMI GRUPPEN Half-year Report H2 23

16 Transition to half-yearly reporting The board of directors of the Group have decided to transition from quarterly to half-yearly reporting for Lumi Gruppen. Previous reporting periods are prepared as halfyearly reporting for comparison purposes. The following tables for Q4 2023 are presented for comparison to previously reported quarters.

Following the integration of operations with ONH, NTech will not be reported as a separate segment in the financial statements going forward. The financial results and relevant disclosures pertaining to NTech’s operations will be consolidated within the ONH segment reporting.

Additionally, student and employee numbers will only be reported on a group level.

Restated NOK 1000

Q423 Q422

Revenue 106 061 Government grants

-

124 852 417

Other operating income 614

836

Total revenue 106 675

126 105

Payroll expenses 64 316

62 012

Depreciation and amortisation expenses 12 550

12 990

Impairment

-

4 046

Other operating expenses* 20 680

30 960

Total operating expenses 97 545

110 008

Operating profit/loss(-) (EBIT) 9 130

16 097

* 2022 numbers restated as per note 15

32

LUMI GRUPPEN Half-year Report H2 23

33

LUMI GRUPPEN Half-year Report H2 23

Alternative performance measures The Group reports its financial results in accordance with IFRS accounting principles as issued by the IASB and as endorsed by the EU. However, management believes that certain Alternative Performance Measures (APMs) provide management and other users with additional meaningful financial information that should be considered when assessing the Group’s ongoing performance. These APMs are non-IFRS financial measures and should not be viewed as a substitute for any IFRS financial measure.

Management, the board of directors and the long-term lenders regularly use APMs to understand, manage and evaluate the business and its operations. These APMs are among the factors used in planning for and forecasting future periods, including assessing compliance with financial covenants. Alternative Performance Measures reflect adjustments based on the following items: Adjusted EBITDA before impact of IFRS 16 Adjusted EBITDA before impact of IFRS 16 is a measure of EBITDA adjusted for (i) lease expenses applying IAS 17 Leases, (ii) revenue and cost from sold or acquired business, and (iii) certain extraordinary items affecting comparability, referred to as Non-Recurring items in this report. The Group has presented this APM because it considers it to be an important supplemental measure to understand the leverage ratio of the Group.

Adjusted EBITDA margin Adjusted EBITDA divided by total revenue.

EBIT EBIT is a measure of earnings before deducting net financial items and taxes. The Group has presented this APM because it considers it to be an important supplemental measure to understand the overall picture of profit generation in the Group’s operating activities.

34

Adjusted EBIT Adjusted EBIT is a measure of EBIT adjusted for (i) revenue and cost from sold or acquired business, and (ii) certain extraordinary items affecting comparability referred to as Non-Recurring items in this report, and (iii) for the subsidiaries of Lumi Gruppen AS, also including IFRS adjustments as these companies report on NGAAP. The Group has presented these APMs because it considers them to be important supplemental measures to understand the underlying profit generation in the Group’s operating activities.

Adjusted EBIT margin Adjusted EBIT divided by total revenue.

Net debt Current and non-current borrowings for the period (excluding property lease liabilities recognised under IFRS 16) less cash and cash equivalents for the period. Net debt is a non-IFRS financial measure, which the Group considers to be an APM, and this measure should not be viewed as a substitute for any IFRS financial measure. The Group has presented this APM as it is a useful indicator of the Group’s indebtedness, financial flexibility and capital structure because it indicates the level of borrowings after taking into account cash and cash equivalents within the Group’s business that could be utilised to pay down the outstanding borrowings. Net Debt is also used as part of the assessment for financial covenant compliance.

Leverage ratio Net debt divided by last twelve months Adjusted EBITDA before impact of IFRS 16.

Capital expenditure Capital expenditure (capex) is a measure of total investment in the period both in the operations and in development of new business. Capital expenditures consist of both maintenance capex and development capex and the source of capex is the Statement of cash flows.

LUMI GRUPPEN Half-year Report H2 23

Company information

LUMI SERVICES AS

SONANS PRIVATGYMNAS AS

OSLO NYE HØYSKOLE AS

ONH EDUCATION AS

NORWEGIAN SCHOOL OF TECHNOLOGY AS

Tromsø

Both local presence with campuses and online offering Trondheim

Bergen Oslo Drammen

Oslo Campus — Oslo Nye Høyskole Fredrikstad Tønsberg

Stavanger Kristiansand

35

LUMI GRUPPEN Half-year Report H2 23

Management

Board of directors

Phone

Erik Brandt

Helge Midttun

Chief Executive Officer

Chair

Martin Prytz

Bente Sollid Storehaug

Chief Financial Officer & Investor Relations

Director

+47 915 04 070 Office Address

Pilestredet 56 0167 Oslo Post Address

Marit Aamold Trysnes

Postboks 3603 Bislett 0136 Oslo

Managing Director Sonans

Website

Managing Director ONH

www.lumigruppen.no IR contact

ir@lumigruppen.no

Morten Danielsen

Ashkan Senobari Director

Giles Smyth Director

Fred Lundqvist Director

Anne Dahle Employee Representative

Financial calendar Annual Report 2023 10 April 2024 Half-year Report 2024 15 August 2024

36

LUMI GRUPPEN Half-year Report H2 23

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Lumi Gruppen