We facilitate lifelong learning
We facilitate lifelong learning
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).
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
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 – market leader within private candidate exams
Oslo Nye Høyskole – National Student Survey 2022: #1 #1
in overall student satisfaction amongst multidisciplinary University Colleges, #5 of all University Colleges.
Oslo Nye Høyskole – National Student Survey 2022: 5/5
Bachelor programmes in International Studies and Political Science rated 5/5 on overall satisfaction.
Lumi Gruppen Students — Campus vs. Online (2023)
8 015 students
Sonans Students — Campus vs. Online (2023)
5 172 students
ONH Students — Campus vs. Online (2023)
2 843 students
Operating revenue 108 EBIT 6 NOK mill. (133) (14)
Oslo Nye Høyskole Cost development at Oslo Nye Høyskole stabilised with improved EBIT margin. .
as bad debt cost is reduced by 3.6 percentage points compared to the fourth quarter 2022.
19 Gross savings NOK mill. Q1
Cost programme on track in Sonans with NOK 19 million in annual savings in the first quarter, with additional NOK 10 million in annual savings from the second half of 2023.
Launch of NTech vocational school marketing campaign in the first quarter, targeting first enrolment for the school year 2023/2024.
On 24 April 2023, Hanover Active Equity Fund III announced a cash offer of NOK 15.25 per share.
improved balance sheet by raising
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.
Total operating revenue was NOK 108 million compared to NOK 133 million last year and represents a decline of 18.8 per cent. The decline was driven by the postCovid market setback for the private candidate business in Sonans. Oslo Nye Høyskole (ONH) had a strong performance in the first quarter with 13.5 per cent growth mainly driven by new study programmes offered online. Unlike the third and fourth quarter last year, this was not due to changed commercial terms.
Operating expenses (OpEx) decreased by 15.9 per cent in the first quarter compared to the same period last year. The largest contributor was personnel expenses, which decreased by 17.2 per cent from NOK 69.4 million to NOK 57.5 million. The decrease in operating expenses is a result of the cost programmes implemented for both Sonans and ONH and strict cost focus throughout the organisation.
As expected, the post-Covid driven market setback continued to affect our private candidate business in Sonans negatively in the first quarter. At the same time, Oslo Nye Høyskole (ONH) continued to grow strongly, and preparations for the launch of the new technology trade school NTech progressed well. Lumi Gruppen has taken significant measures to adapt to the market situation and is well-positioned for an anticipated recovery in the market while maintaining the high quality of our educational programmes. The cost reduction programme in Sonans is well on track, with NOK 20 million of annual cost-saving measures realised in the first quarter. Additional savings of NOK 10 million are expected to be realised in the second half of 2023. During the first quarter, we significantly improved our financial position with a NOK 175 million equity raise and a new long-term loan arrangement with Nordea. A subsequent offering is planned for Q2, adding NOK 25 million in additional equity.
The market for our private candidate business in Sonans is expected to normalise over time. We see the possibility that student volumes can return to growth from the second half of 2023, which would rapidly translate into profit improvement, but it is too early to conclude on the likelihood of this. Long-term, we expect changes in the public admission system for students, which might influence our private candidate business. Recent signals based on the public hearings indicate that the changes might be more moderate than originally proposed.
Earnings before interest and tax (EBIT) in the first quarter were NOK 6.1 million compared to NOK 14.3 million last year. The EBIT margin ended at 5.7 per cent compared to 10.8 per cent last year. The decrease in EBIT and lower margin in the quarter was a result of the decline in revenues. Reduced student volumes and lower revenue for Sonans have to a large extent been offset by the cost programme implemented together with the growth in volumes and revenue for Oslo Nye Høyskole. The negative deviation of NOK 25 million in revenue was therefore reduced to only NOK 8 million lower EBIT.
Lumi Gruppen had a total liquidity reserve including the revolving credit facility of NOK 206 million (235) and net interest-bearing debt excl. IFRS 16 of NOK 164 million (275) at the end of the first quarter. Lumi Gruppen successfully completed a private placement of NOK 175 million 7 March 2023. Of the NOK 175 million in proceeds, NOK 130 million was used to reduce the bank debt from NOK 430 million to NOK 300 million. On 24 April 2023, the Group launched a subsequent offering which will potentially give an additional NOK 25 million in proceeds. Together, this will improve the financial position of the Group and allow for some more strategic and operational headroom going forward.
As previously announced, Lumi Gruppen agreed on a new leverage covenant (NIBD/NGAAP EBITDA) for the first and second quarter of 2023. The covenant for the first quarter was 4.0 and 5.0 for the second quarter. Actual leverage in the first quarter was 1.6. In the new financing
agreement with effect from the third quarter of 2023 and onward, the leverage covenant has been set at 3.5.
In the first quarter, the Group launched its marketing campaign for NTech. The first programme offered is “WebApp development and design” and the plan is to continue to develop and launch programmes annually within the technology areas relevant for NTech. The student volumes in the vocational market have grown quite significantly over the last years and the Group believes that NTech is well positioned to take a significant share of this market. NTech will offer programmes both on campus and online. The main investments for NTech prior to launch this year are personnel and marketing expenses. NTech will use existing premises and work closely together with Oslo Nye Høyskole to take care of student and general administration. This will lead to reduced up-front investment costs and hence lower the operational risk the first year in operation.
Oslo Nye Høyskole is preparing the launch of a new bachelor programme for the coming school year. The programme will target students planning a career within HR and organisational development. In coming years, the development of study programmes will be of importance for Oslo Nye Høyskole to secure continued volume growth and to maintain and improve its competitive position. Thanks to the current investments, the launch and expansion of new programmes will be more straightforward and less complex, as many of them can be built upon the existing programme portfolio and subject areas.
Following the implementation of the cost programme last year, the Group has continued to work with cost optimisation to compensate for most of the volume loss and decline in revenue for Sonans. As previously announced, a decision has been made to close three campuses in 2023 that is expected to reduce the cost base by a further NOK 10 million the coming school year 2023/2024. For the remaining campuses, work is also ongoing to identify possibilities to reduce campus size (i.e., reduced square metres) and/or identify the potential for subletting parts of the premises.
To improve classroom efficiency and utilisation, work is also ongoing to optimise the channel mix and the product portfolio offered per channel for Sonans. The result will be a larger share of students with combined contracts (campus, live and online) that will allow for more flexibility and reduced costs.
As result of the growing online market for both private candidate and higher education in general, the Group will continue to prioritise the development of the digital education platforms to strengthen its competitive position. The platforms will also incorporate new technology such as artificial intelligence (AI).
The Group’s reporting structure comprises two operational segments: Sonans and Oslo Nye Høyskole (ONH).
Operating revenue decreased by 35.9 per cent to NOK 56.1 million (87.6). Most of the decline in revenue is related to lower student volumes for the campus offering. At the same time, online revenue dropped by 5.8 million in the first quarter. Of this, NOK 3.0 million is related to revenue not recognised as result of students with full-year contracts demonstrating low payment ability and hence low likelihood for receiving a consideration from them. The Group announced in the fourth quarter a change in its revenue recognition for full-year contracts. In the case where students demonstrate low payment ability in the first semester (i.e., 2H of 2022), revenue from their contracts will not be recognised in the second semester of the school year. The full-year contract revenue will however be recognised when payment is received. The Group expects that the effect of this change will be in line with what was communicated in the fourth quarter report, in total NOK 8-10 million for the first half of 2023.
Total operating expenses excluding depreciation and impairment losses equalled NOK 45.5 million (64.6) in the first quarter. This represents a decrease of 29.6 per cent and NOK 19 million compared to last year. The decrease in operating expenses is a result of the cost programme implemented. Personnel expenses constituted 50% of the cost reduction, but underlying savings are higher as the sales and marketing department, previously employed by Lumi Services, was transferred to Sonans on 1 January 2023. As a result, other expenses (service fee from parent) were reduced by NOK 3 million in the quarter and personnel expenses were increased by the same amount. Taking this into account, personnel expenses were reduced by NOK 13 million compared to last year. Last year’s accounts are not adjusted to reflect this change in structure and its effect on report lines for operating expenses.
The development for bad debt has improved during the first quarter with a 0.5 pp lower bad expense percentage compared to last year and a 3.6 pp reduction compared to the fourth quarter last year. The Group has strengthened its order-to-cash process by implementing credit checks and tighter follow-up of students that are late with payments. Going forward, credit quality will continue to improve, resulting in a lower provision for bad debt. The provision for bad debt at the end of first quarter was NOK 20.1 million for Sonans compared to NOK 9.8 million last year.
Depreciation and amortisation expenses ended at NOK 10.6 million (10.9) in the first quarter. No impairment of right-of-use assets has been made in the first quarter.
Earnings before interest and tax (EBIT) for Sonans in the first quarter was NOK 0.1 million (12.0). The decline in EBIT is a result of the market setback following the pandemic with lower sales volume not fully compensated by the cost programme implemented.
Sonans has completed its turnaround strategy, which has led to a stronger digital offering and reduced the number of campuses from 15 to 12, with a further reduction to 9 by the end of the second quarter of 2023. The campus operations will in the future be concentrated in the largest cities in Norway and the new education offering Live will provide students with the campus quality experience in the areas without a physical campus.
At the end of the first quarter, the number of full-time employees (FTEs) was 102 (139). Following the closure of an additional three campuses by mid-2023, the number of FTEs is expected to end around 92 for Sonans.
Operating revenue increased by 13.5 per cent to NOK 50.9 million (44.9) in the first quarter. Sales growth is to a large extent driven by the new programmes launched at ONH and online in particular. The growth in revenues is also a combination of a higher share of recurring revenues and volume growth.
Total operating expenses excluding depreciation and impairment losses equalled NOK 37.7 million (36.1) in the first quarter. The increase in operating expenses compared
to last year is mainly a result of higher bad debt expenses of NOK 1.2 million. Unlike Sonans, the increased provision for bad debt is more a consequence of a generally higher credit risk in the market and the implementation of a new expected credit loss (ECL) model. Bad debt still constitutes a relatively low share of total revenues for Oslo Nye Høyskole compared to similar markets. For the financial year 2022, bad debt constituted around 1 per cent of the total operating revenue.
Depreciation and amortisation expenses were NOK 3.0 million (2.5) in the first quarter.
Earnings before interest and tax (EBIT) for ONH in the first quarter were NOK 10.2 million (6.3). The EBIT margin was 6.0 percentage points higher compared to the same period last year as result of higher revenue and a stable development in operating expenses.
At the end of the first quarter, the number of FTEs was 113 (123), which is a reduction of 9 per cent.
Total operating revenue decreased by 18.8 per cent to NOK 108 million (133). Revenue was adjusted by NOK 4.5 million in the quarter as result of full-year contracts in Sonans with low likelihood for receiving a consideration. Please see note 2 in the financial accounts for more information.
Total operating expenses excluding depreciation and impairment losses equalled NOK 87.5 million (104) in the first quarter. Net savings from the cost programmes were NOK 17 million in the quarter compared to last year. These savings are mainly related to a significant reduction in personnel expenses for Sonans, together with reduced marketing expenses and overhead cost.
Depreciation, amortisation, and impairment expenses ended at NOK 14.1 million (14.3) in the first quarter. No impairment was taken in the first quarter of 2023. Lumi Gruppen took a write-down of right-of-use assets of NOK 4 million in the fourth quarter of 2022. That was for closing an additional three campuses in the Greater Oslo region from 2H 2023.
Earnings before interest and tax (EBIT) for the Group ended at NOK 6.1 million (14.3) in the first quarter with a corresponding margin of 5.7 per cent vs. 10.8 per cent in the same period last year. The reduced margin is a result of the revenue decline not being fully offset by the cost programmes implemented.
Non-recurring items in the first quarter were NOK 1.6 million compared to NOK 6.4 million last year. Nonrecurring items for the first quarter mainly relate to personnel expenses and consultancy fees in connection with the restructuring of the Sonans business.
In the fourth quarter, the Group announced that the numbers presented in the quarterly report will be the reported numbers and not adjusted numbers. Nonrecurring items are therefore only shown on a separate line in the segment P&L and not included in EBITDA or EBIT number for the first quarter this year and last year.
The Group’s assets totalled NOK 1 311 million at the end of first quarter, a decrease of NOK 41 million from the same period last year. The Group’s equity amounted to NOK 713 million, an increase of NOK 161 million compared to the same period last year. The equity ratio was 54 per cent (41 per cent). Current and non-current liabilities to financial institutions were NOK 299 million at the end of the first quarter compared to NOK 438 million in the same period last year.
Net cash flow from the Group’s operations during the first quarter was NOK 83 million (114). The difference between net cash flow from operations and profit before tax is mainly due to changes in working capital. For both Sonans and Oslo Nye Høyskole, most students pay tuition fees early in the semester (resulting in a very positive cash flow in the first and third quarters), and in the latter part of the semester the cash is used for ongoing operations.
The net cash outflow from investing activities amounted to NOK 2.8 million (4.3) in the first quarter. The majority of this relates to development of new study programmes for Sonans, ONH and NTech. The net cash flow from financing activities was NOK 27 million (minus 9) in the first quarter. The positive cash flow from financing is a result of the successful private placement of NOK 175 million completed in the quarter. Of this, NOK 130 million was used to pay down debt on the senior facility of NOK 430 million. With the down payment, the interest-bearing debt was NOK 300 million at the end of the first quarter.
During the first quarter, the Group had a net increase in cash and cash equivalents of NOK 107 million (101). As of the balance sheet date, the Group had cash and cash equivalents of NOK 136 million, compared to NOK 165 million at the same time last year.
The Group received a waiver from its leverage covenant as of 31 December 2022. The leverage ratio at the end of first quarter was 3.4. The calculation of leverage according to the new terms allowed a non-recurring item adjustment of 30 per cent of the NGAAP EBITDA excl. IFRS 16. The actual adjustment was 24.6 per cent.
The Group’s share capital was NOK 22.2 million as of 31 March 2023, consisting of 52 860 481 ordinary shares, each with a par value of NOK 0.42. All the shares are fully paid and have equal rights. Following the private placement, the share capital was increased by 16 666 667 new shares.
Lumi Gruppen owned 193 814 treasury shares as at the balance sheet date. The number of shareholders as at 31 March 2023 was 1 840, of which the top 20 shareholders constituted 75.5 per cent of the shares.
On 24 April, Hanover Investors published a cash offer for 100 per cent of the shares in Lumi Gruppen AS at a price of NOK 15.25 per share. Hanover Investors was the largest shareholder of Lumi Gruppen as of 31 March 2023 with 25.3 per cent ownership.2
The Board supports and has unanimously agreed to recommend the Offer. When recommending the Offer, the Board has considered the terms and conditions of the Offer and a fairness opinion from its financial advisor, ABG Sundal Collier ASA, concluding that the Offer is fair from a financial point of view to the shareholders of the Company.
The complete terms and conditions of the cash offer was distributed to the Company’s shareholders on 26 April 2023, with the acceptance period for the Offer commencing on the same date (the “Offer Period”). The Offer Period is expected to last for 20 business days, subject to any extensions. The Offer is expected to be completed during the second quarter of 2023.
Lumi’s business model has been transformed during the last year, with a more flexible and scalable business model with a relatively lower share of fixed costs. Following the successful efficiency programmes with significant cost reductions, a more favourable market situation for the Group will therefore rapidly improve the financial performance and profitability of the Group’s operations.
The private candidate business is the most important swing factor for Lumi Gruppen’s financial development in the short to medium term. The visibility into the volume trend for Lumi Gruppen’s private candidate business in Sonans remains limited for the second half of 2023. More clarity will come during the coming months.
The cancellation of exams in high schools three years in a row has affected the private candidate market, and the re-introduction of exams this spring will likely contribute to a more normal market situation going forward.
The market development for Lumi Gruppen is correlated and connected to several macroeconomic drivers including the activity in the public market for higher education, the cancellation of exams in high schools during Covid and the labour market.
There is a demand gap in public higher education in Norway, which means that a significant number of students do not have a place of admission. The impact of the number of applicants to higher education, which was announced by the Norwegian Universities and Colleges Administration Services (NUCAS) in late April, is deemed to be a neutral signal for Lumi’s student volumes. The final result of the intake will be announced 20 July.
The labour market has been strong the past year, and this partly explained the decline in applicants for higher education. The current macroeconomic situation, which may lead to a softer labour market, could lead to higher demand for education in the second half of 2023 and in 2024.
Lumi Gruppen is closely following the process regarding the recommendations published by the Admission Committee in December 2022. At this stage, these are suggestions that are likely to be modified through the political process before a potential implementation. Recent signals based on the public hearings indicate that the changes might be more moderate than originally proposed. The political process means that implementation of any changes will take time, and the first school year with a new system implemented is expected in four to five years. While the outcome of the process may affect the current offering of Sonans, Lumi Gruppen believes this will also create new business opportunities. As long as access to attractive university programmes is limited, there will be a market for services that help students qualify. Lumi Gruppen is actively planning to adapt to any changes, based on various scenarios.
The sales for the spring intake ended around 30 per cent below the spring intake of the previous school year. This is in line with the sales in the autumn intake this school year, which ended down 28 per cent.
With the combined sales from the autumn and the spring intake, revenue is expected to come in at NOK 118-120 million for the first half of 2023 and NOK 110-112 million when deferring contract revenue of around NOK 6-10 million from contracts with low likelihood of receiving a consideration.
ONH completed a strong student spring intake with 17 per cent growth compared to last year. The intake is for online programmes only and is proof of the strong online position for the college.
With the combined sales from the autumn and the spring intake, revenue is expected to come in at NOK 95-97 million for the first half of 2023.
NTech was approved by NOKUT in December 2022. The Group launched a marketing campaign in Q1 2023, targeting its first enrolment of students for the school year 2023/2024. NTech represents a new growth opportunity for Lumi Gruppen in a market segment growing rapidly in recent years. The Group will continue to develop programmes to increase the volume of students the coming years. NTech will offer courses both online and on campus.
We confirm, to the best of our knowledge, that the condensed set of financial statements for the period 1 January to 31 March 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 knowledge, that the interim management report includes a fair review of important events that have occurred during the financial year and their impact on the condensed set of financial statements, a description of the principal risks and uncertainties for the remaining nine months of the financial year, and major related parties’ transactions.
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.
Oslo, 10 May, 2023
Approved by the Board of Directors and ManagementMidttun Harald Arnet Anne Dahle Frode Eilertsen Chair Storehaug Sylvie Milverton Erik Brandt Martin Prytz CEO CFO
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 in Nydalen, 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 Bidco AS, 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.
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 earns revenue from educational services including one university college and private several 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
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.The liability will normally be largest in Q1, since payments received are for the semester, which is in both Q1 and Q2.
In Q1, NOK 4.5 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.
As described in the annual report for 2022, goodwill is assessed for impairment on an annual basis, and, as per IAS 36, more frequently if indicators of impairment are identified. Goodwill was assessed for impairment on 31 December 2022, and no impairment was recognised.
Other intangible assets
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 the asset exceeds its recoverable amount.
The Group has entered into a significant lease agreement with commencement date in the third quarter of 2023. This agreement will be recognised as an IFRS 16 lease obligation at the commencement date, and right-of-use asset is estimated to approx. NOK 120 million when recognised.
Parent company (Lumi Gruppen AS)
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 the bank for a new three-year financing agreement. The financing agreement will be signed in Q2, and the structure and terms are as follows:
— NOK 300-330 million senior facility agreement and a revolving credit facility of NOK 70 million
— Interest rate NIBOR + applicable margin dependent on leverage level
— Leverage (NIBD/EBITDA) covenant 3.5
— Allowable adjustment of EBITDA of up to 10%
— Semi-annual instalments of NOK 7.5 million
Balances and transactions between the Company and its subsidiaries, which are related parties to the Company, have been eliminated ona consolidated basis. There are no
There are no contingent liabilities as of 31 March 2023.
significant related party transactions for Lumi Gruppen as of 31 March 2023.
Lumi facilitates lifelong learning through flexible education and contributes to ensuring society has a workforce for the future.
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 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.
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.
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.
Net debt divided by last twelve months Adjusted EBITDA before impact of IFRS 16.
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 SERVICES AS
SONANS PRIVATGYMNAS AS
OSLO NYE HØYSKOLE AS NORWEGIAN SCHOOL OF TECHNOLOGY AS
ONH EDUCATION AS
Both local presence with campuses and online offering
Lillestrøm Oslo Ski Sandvika
Oslo Campus — Oslo Nye Høyskole