Lumi Gruppen quarterly report Q421

We facilitate lifelong learning

Q4 QUARTERLY REPORT Q4 2021

LUMI GRUPPEN quarterly report Q421

Contents 3

This is Lumi Gruppen

5

CEO message

6

Highlights Q4 21 — Lumi Gruppen

8

Key financial and operational figures

10

Interim report — Lumi Gruppen

16

Sonans

20

Oslo Nye Høyskole

23

Consolidation table

26

Condensed interim financial statement and notes

40

Alternative performance measures

41

Company information

2

LUMI GRUPPEN quarterly report Q421

This is Lumi Gruppen Lumi Gruppen is a leading education provider in Norway, providing high-quality educational services. Today, 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,

High school private candidate exam preparation courses in Norway.

8 400 students

58% campus 42% online

Market leader within private candidate exams

1

#

Online revenue share in 2021

33%

3

acquired by Lumi Gruppen in 2019. ONH has one campus located in central Oslo, in addition to a strong online offering.

Lumi Gruppen is also in the process of establishing a new school, NTech (Norwegian School of Technology), which is a practical IT vocational school.

Private university college with strong online offering and campus in Oslo.

2 800 students

32% campus 68% online

Vocational school offering with IT education programmes for the private and the professional market.

Pending accreditation from NOKUT campus online

National survey for student satisfaction (2021)

Revenue 2021 (NOKm)

Adj. Cash conversion in 2021

Adj. EBIT margin in 2021

Top 3 532 93%

25%

LUMI GRUPPEN quarterly report Q421

The demand for higher education is increasing in Norway, and Lumi Gruppen is well positioned as a market leading provider of private education.

4

LUMI GRUPPEN quarterly report Q421

CEO message The demand for our student offerings remain strong and the need for higher education is increasing. In such a positive environment, important measures have been taken to align our student programmes to the rapid online migration that has taken place.

Erik Brandt, CEO

In Sonans, we are about to launch a new innovative and unique digital campus offering that will expand market reach and significantly add value to the current online value proposition.

Through this initiative, our online offerings will be on par with our campus offerings and, at the same time, increase operational flexibility and scalability.

Oslo Nye Høyskole has developed a strong educational offering with significant growth opportunities. We will expand the student offerings by introducing new courses, and we will also increase the number of students in the coming autumn intake.

I am also enthusiastic about our plans for Norwegian School of Technology. The market for IT studies continues to strengthen. All ramp-up plans are completed, and we are aiming to launch the school this autumn.

Erik Brandt, CEO

5

LUMI GRUPPEN quarterly report Q421

Highlights Q4 21 — Lumi Gruppen Satisfactory performance for the Group in Q4 and 2021, given the rapid shift to online driven by Covid-19 Launch of digital campus

New Sonans MD Marit Aamold Trysnes appointed as new MD in Sonans.

New digital campus offering in response to the online shift.

Updated strategy for Sonans Focusing on digital transformation to strengthen the online offering.

Revenue Revenue affected by migration to online in the autumn student intake for Sonans. ONH delivers 19% growth from the new programmes launched.

+ NTech ramp-up plan established — awaiting final approval

6

+ 2 new board members appointed

Cost measures Cost measures implemented to reflect online shift. Additional measures in pipeline.

New board members adding strategic competence to the board from both the tech and educational industry.

New Programmes at ONH Well positioned with solid spring student intake. Positive outlook with full marketing launch in the coming autumn intake.

Dividend Proposed dividend of NOK 1 per share, equal to 60% of Profit.

LUMI GRUPPEN quarterly report Q421

Q4

In line with expectations, stable demand and continued online migration REVENUE AT NOK 134 MILLION

SONANS

FOR THE FOURTH QUARTER (-2%)

—

Revenue affected by online migration in autumn student intake

—

New digital campus offering in response to the online shift

—

Marit Aamold Trysnes appointed new Managing Director

—

Shift to online for Sonans

—

Continued growth from new programmes for Oslo Nye Høyskole (ONH)

EBIT AT NOK 24 MILLION FOR THE FOURTH QUARTER (-23%)

—

Fixed campus cost structure short term for Sonans

OSLO NYE HØYSKOLE

—

Ramp-up of costs related to new programmes at Oslo Nye Høyskole

—

Well positioned with solid spring student intake

—

Positive outlook with full marketing launch in the coming autumn intake

COST MEASURES TOTALLING NOK 10-12 MILLION IMPLEMENTED TO REFLECT ONLINE SHIFT

NORWEGIAN SCHOOL OF TECHNOLOGY (NTech)

—

Operational efficiency

—

—

Rightsizing organisation

—

Closing 3 campuses from second half of 2022, reducing operating expenses annually further

by NOK 14 mill.

Ramp-up plan established, awaiting final approval

PROPOSED DIVIDEND OF NOK 1 PER SHARE

—

Equal to 60% of profit

Revenue

Adj. EBIT

NOKm per quarter/year

NOKm per quarter/year

150

133

125

134

126

131 132

134 136

60

54

50

47

40

100

30

30

45 32

27

31 24

20

50

10 0

7

21 20 Q1

21 20 Q2

21 20 Q3

21 20 Q4

0

21 20 Q1

21 20 Q2

21 20 Q3

21 20 Q4

LUMI GRUPPEN quarterly report Q421

Key financial and operational figures

NOK MILLION Q421

QUARTERS FULL YEAR

CHANGE 20 - 21

Q420

2021

2020

Q4

YR

136

532

518

-2%

3%

INCOME STATEMENT

Revenue Payroll expenses Payroll expenses in % of revenue Total operating expenses Total operating expenses in % of revenue Adjusted EBITDA Adjusted EBITDA margin Adjusted EBIT

134 72

69

246

225

3%

10%

54%

51%

46%

43%

5%

7%

25

23

99

87

8%

14%

19%

17%

19%

17%

9%

11%

37

44

186

206

-14%

-10%

28%

32%

35%

40%

-13%

-12%

24

31

133

157

-23%

-15%

18%

23%

25%

30%

-22%

-17%

Non-Recurring Items

5

7

22

25

-31%

-12%

Profit/(loss) for the year

9

8

59

63

24%

-5%

0.3

0.2

1.6

1.7

24%

-5%

Adjusted EBIT margin

Earnings per share FINANCIAL POSITION

Capex Adjusted free cash flow Adjusted cash conversion Total Assets Equity Equity % Cash Position Net (Interest Bearing) Debt

5

5

18

13

0%

38%

-31.5

n.a.

72

78

-

-8%

-176%

n.a.

93%

149%

-

-38%

1 276

1 243

1 276

1 243

3%

3%

545

298

545

298

83%

83%

43%

24%

43%

24%

83%

83%

64

18

64

18

256%

256%

376

606

376

606

-38%

-38%

295

244

295

244

21%

21%

5.0%

3.3%

4.0%

3.4%

52%

18%

15

15

15

15

0%

0%

1

1

1

1

0%

0%

OPERATIONAL KPIS

Number of Employees (FTEs) Sick-leave Number of campuses Sonans Number of campuses ONH

8

Number of students Sonans

8 437

7 580

8 437

7 580

11%

11%

— of which online

3 526

1 743

3 526

1 743

102%

102%

Number of students ONH

2 798

2 513

2 798

2 513

11%

11%

— of which online

1 860

1 548

1 860

1 548

20%

20%

LUMI GRUPPEN quarterly report Q421

Lumi Gruppen ensures that people receive the right education at the right time. By providing this service, we reduce the risk of un­employment and a lack of qualified workers.

9

LUMI GRUPPEN quarterly report Q421

Interim Report — Lumi Gruppen During the fourth quarter important measures have been taken to further improve the competitive position and align the student offerings to the shift in market trends.

Operating Revenue NOKm

Number of enrolled students

600

7500

532 518

5849

5000

300 150 0

48% online

6802 5386

450

Students — Campus vs. Online (2021)

11 235

3291

21 20 Q4

21 20 YTD

Total Operating Expenses NOKm 400

0

Q421 online

Q420 campus

Adjusted EBIT NOKm

312

52% campus

Adjusted EBIT %

200

346

300

students

2500

134 136

40 158

150

133

30

30 23

100

200 100 0

96

92

21 20 Q4

50

21 20 YTD

0

20

24

18

10

31

21 20 Q4

25

21 20 YTD

0

21 20 Q4

21 20 YTD

Operational Review For Sonans, the migration from campus to online continued.

The number of new students that signed up for Sonans’ courses in the spring semester of 2022 showed a 11 per cent decline compared to last year, in line with our expectations.

Students that signed up for online studies increased by 4.1 per cent, while the number of campus students was down 23.8 per cent. The company believes that the significant shift towards online is in part an effect of the Covid-19 pandemic.

As a response to the shift in market trends, Sonans will introduce a new and unique learning concept by establishing a digital campus offering. The digital campus

10

will utilise technology to drive student experience and provide students with digital assistance and live online classes. The digital campus will utilise existing teaching capacity at the physical campus and the courses will be structured in line with existing campus courses. Facilitating interactions between teachers and fellow students will be crucial for structuring the new student offering.

The digital campus will also significantly enhance the online offerings for Sonans from the current online structure and increase the value per student as prices for campus and digital campus are aligned from the beginning.

LUMI GRUPPEN quarterly report Q421

The new online offering will also provide growth opportunities for Sonans as the new model significantly expands student reach and is more scalable and efficient than the campus model. The new digital offering will be tested with national streaming from two schools during the first half of 2022 and, if successful, a full launch will commence autumn 2022.

The rapid shift towards online studies has affected profitability short-term at Sonans as the current prices for online studies are lower than for campus courses.

Consequently, Sonans has during the fourth quarter implemented a cost programme and measures to improve operational efficiency.

These measures have included merging classes to improve classroom efficiency, more efficient digital counselling and rightsizing the organisation. In total, annual costs will be reduced by NOK 10-12 million and further measures will be implemented. Three campuses will be closed after the first half of 2022 with annual gross cost savings of NOK 14 million effective from the second half of 2022. The net effect on the profit and loss will be neutral at first due to lost sales from these campuses. But the effect of this is expected to turn positive, as a significant share of students are expected to migrate to Sonans’ online courses and the digital campus.

In addition, the commercial terms for current online courses will be adjusted. The courses sold online, starting 1 Jan 2022, will be offered for both 6 and 12 months and this will effectively change the distribution of revenue from 12 months to 6-9 months, on average. Effective as of February 2022, prices on different online courses will be adjusted by up to 10 per cent and prices for campus courses will be increased in line with previous year’s increases.

Student satisfaction is one of the most important key performance indicators for the Group and Sonans devotes considerable resources to provide an optimal learning environment for the students. A key element when aligning Sonans’ student offerings to the shift in market conditions will be to never compromise on student satisfaction and make sure the learning environment will be maintained.

During the fourth quarter 2021, Bjørknes Høyskole was successfully renamed Oslo Nye Høyskole. The new name better reflects the strategic direction of the school, and the old name could also be confused with the name of a competitor. Oslo Nye Høyskole is now well positioned in the higher education market with significant growth opportunities.

The spring student intake reached an all-time high with an increase of 16 per cent, whilst the number of new bachelor students increased by 55 per cent. The

11

solid performance is driven by a strong increase in the number of students, especially those attending bachelor programmes and annual programmes. The sale is in line with expectations, and it is encouraging to see that bachelor and annual programmes continue to grow, since they are the programmes with highest value per student.

The increase in the number of students will drive growth for the next few years as new students in multi-year programmes (i.e., bachelor and masters) will continue as students at the school for several years. In addition, new single subject courses will be introduced, derived from the bachelor programmes which will further increase the number of students with limited extra costs.

The solid sales performance is a consequence of a continuous effort to improve sales and marketing practices by training counsellors and adopting automated dashboards and KPIs. The sales and marketing efforts will be stepped up further in the coming autumn intake.

Oslo Nye Høyskole has a strong online education presence and a clear strategy to further strengthen the online education offering to expand their student reach.

During the fourth quarter of 2021, the Norwegian Agency for Quality Assurance in Education (NOKUT) required further information before it grants final accreditation for the launch of NTech (Norwegian School of Technology).

NTech is a practical IT vocational school which will be established in close cooperation with relevant technology partners and provide students with relevant case studies.

NTech has started to recruit employees, secured premises and is in dialogue for collaboration with key industry participants. Lumi Gruppen will target a launch of the new school in 2022, most likely from the autumn semester.

There is a large demand for high-quality practical programming expertise and the Group will offer vocational IT education and courses, both for the private and professional market.

LUMI GRUPPEN quarterly report Q421

OUTLOOK

MANAGEMENT AND BOARD

To strengthen the management team, Lumi Gruppen has appointed Marit Aamold Trysnes as new Managing Director for Sonans. Trysnes has more than 15 years of professional experience as managing consultant, director of Strategy in Høyskolen Kristiania, and Chief Strategy and Marketing Officer in Lumi Gruppen since 2015. Trysnes holds an MBA from BI Norwegian Business School.

In addition, Bente Sollied Storehaug and Sylvie Milverton have been appointed as board members of Lumi Gruppen. Sylvie Milverton is currently the CEO and co-founder of Lynx Educate, which is a platform that provides a broad range of education offerings from leading learning institutions. Bente Sollied Storehaug is currently the CEO of Digital Hverdag and has an extensive experience both as senior management of several companies and board member of numerous companies.

12

The demand for higher education is increasing in Norway, and Lumi Gruppen is the market leading provider of private education. Through a combination of high student satisfaction and a unique learning concept, the Group has established a competitive edge and is ready to exploit market opportunities going forward.

The overall long-term financial ambitions for the Group remain unchanged. However, the Covid-19 pandemic has led to a faster than expected shift in student mix from campus to online which will affect performance at Sonans in the shorter term as prices for private candidate courses are significantly lower for online than for campus courses.

Consequently, Sonans is in the process of adjusting prices for the online courses. In addition, several efficiency measures have been implemented that will reduce the cost base by roughly NOK 10-12 million. Further measures, including closures of 3 campuses will be implemented in the second half of 2022.

Sonans is also in the process of launching a new unique digital campus offering that will increase the value of the online student offerings and align online prices with campus prices. In addition, the new online offering will significantly expand student reach for Sonans and provide growth opportunities with a scalable and flexible student model. Pilot testing of the new digital campus is being performed at two schools during the first half of 2022 with a full launch in second half of 2022.

Oslo Nye Høyskole will continue to focus on growing the business and reaching economies of scale. The key priority will be to increase the number of students in the new programmes, but new single subject programmes will also be launched. These programmes will be derived from multi-year bachelor programmes. In addition, an additional bachelor programme is planned for launch in 2023. By continuing to increase bachelor programmes’ share of revenue, revenue visibility will increase in the business model and reduce operational risk.

The ramp-up plans for NTech have been established and are under implementation. Marketing of the new studies will commence as soon as final approval has been given by the NOKUT. Because of the current market conditions with students migrating to online studies, Lumi Gruppen expects the EBIT margin for 2022 to be on par with 2021 with improved profitability materialising in the second half of 2022.

LUMI GRUPPEN quarterly report Q421

Key figures

NOK MILLION Q421

QUARTERS FULL YEAR

CHANGE 20 - 21

Q420

2021

2020

Q4

YR

133.7

136.0

532.0

518.4

-1.7 %

2.6%

— Campus

86.3

99.1

355.4

388.7

-12.9 %

-8.6%

— Online

47.4

36.5

176.5

129.1

29.7 %

36.7%

133.7

136.0

532.0

518.4

-1.7 %

2.6%

Payroll expenses

71.5

69.3

246.8

224.8

3.2%

9.8%

Payroll expenses in % of operating revenue

54%

51%

46%

43%

5.0%

7.0%

Other expenses

24.7

23.0

99.3

87.3

7.6%

13.7%

Other expenses in % of operating revenue

19%

17%

19%

17%

9.5%

10.8%

Total operating expenses

96.3

92.3

346.1

312.1

4.3%

10.9%

Operating Revenue

Total operating revenue

Adjusted EBITDA

37.4

43.7

185.9

206.3

-14.4%

-9.9%

28.0%

32.1%

34.9%

39.8%

-12.9%

-12.2%

Depreciation and amortization

13.4

12.4

52.5

48.8

7.9%

7.7%

Adjusted EBIT

24.0

31.3

133.4

157.5

-23.2%

-15.3%

18.0%

23.0%

25.1%

30.4%

-21.9%

-17.5%

5.0

7.2

21.7

24.8

-31.2%

-12.3%

Number of FTEs

294.5

244.3

294.5

244.3

20.6%

20.6%

Sick-leave

5.0%

3.3%

4.0%

3.4%

51.5%

17.6%

Adjusted EBITDA %

Adjusted EBIT % Non-recurring items

Financial Review The financial statements presented as part of the Operational and Financial review, have been adjusted for the sale of Sonans Karriere AS. In addition, adjustments have been made for non-recurring Items, including costs related to M&A, IPO and funding, costs related to the IT system Qybele, and depreciation of certain intangible assets associated with the acquisition of Oslo Nye Høyskole in 2019.

The segment accounts are based on NGAAP adjusted for IFRS effects for comparison and include non-recurring Items on the segment level.

For all periods up to and including the year ended 31 December 2019, Lumi Gruppen AS prepared its consolidated financial statements in accordance with Norwegian GAAP. Lumi Gruppen AS has prepared its consolidated financial statements for the year ended 31 December 2020 in accordance with IFRS, and from 2021 and going forward the accounts will be in accordance with IFRS. The transition date was 1 January 2019.

The condensed interim financial statement and notes for Q4 and 2021 are unaudited.

13

CONSOLIDATED INCOME STATEMENT

Revenues declined by 2 per cent to NOK 133.7 million in Q4 2021, compared to NOK 136.0 million in Q4 2020.

Revenue was positively impacted by a significant increase in the number of students at Oslo Nye Høyskole with NOK 5.6 million in higher sales for the quarter, corresponding to a 14.5 per cent growth. For Sonans, migration to online continued in Q4 2021 and resulted in a net decline in revenue of 7.8 million corresponding to minus 8.3 per cent.

Online sales have been strong in the quarter, but due to lower pricing for online courses and a different method for revenue recognition, lost campus sales have not been balanced out.

Adjusted total operating expenses (excluding depreciations) increased by 4.3 per cent to NOK 96.3 million in Q4 2021, compared to NOK 92.3 million in Q4 2020. The increase is mainly driven by the investments made in Oslo Nye Høyskole to prepare for the expected student growth. There were limited additional Covid-19

LUMI GRUPPEN quarterly report Q421

costs in Q4 2021 for Sonans, but higher expenses compared to last year as a result of the new campuses that opened in Q3 2021.

Personnel costs is the largest category, totalling NOK 71.5 million in Q4 2021. Total personnel costs for Lumi Gruppen increased by 3.2 per cent from the same period last year. The increase was to a large extent driven by additional staff at Oslo Nye Høyskole to prepare the organisation for expected student growth because of the new bachelor programmes launched. For Sonans, personnel costs decreased due to lower bonus accruals compared to the same period last year. Group personnel costs was unchanged for the quarter.

Premises costs (non-lease related) in Q4 were in line with costs in the same period last year. Sales and marketing expenses in Q4 2021 were up NOK 1.8 million, up 40 per cent compared to the same period last year. The increase is related to higher activity and media spend for the autumn intake (Q3 and Q4) and specifically related to Oslo Nye Høyskole and the launch of new programmes.

Bad debt was NOK 4.3 million in Q4 2021 compared to NOK 3.6 million in the same quarter last year. The increase in bad debt is mainly a result of higher online sales with higher bad debt per cent compared to campus sales.

Adjusted depreciation and amortisation expenses were NOK 13.4 million in Q4 2021 compared to NOK 12.4 million in Q4 2020.

Adjusted EBIT ended at NOK 24.0 million, a decrease of 23 per cent compared to the same period last year.

The net financial expense in Q4 2021 was NOK 6.1 million compared to NOK 12.8 million in Q4 2020.

Income tax expense in Q4 2021 was NOK 3.5 million compared to NOK 2.9 million in Q4 2020.

Profit was NOK 10.3 million in Q4 2021 compared to NOK 8.4 million in Q4 2020.

NON-RECURRING ITEMS

For the quarter, the Group reported NOK 5.0 mill in non-recurring items. Of this, NOK 3.3 million relates to the Qybele LMS license fee and legal costs as result of the dispute between Nettskolen Eureka AS and Oslo Nye Høyskole AS. Further, NOK 1 million represents the termination cost for the HQ premises in Oslo Nydalen and NOK 0.5 mill NOK relates to a severance pay agreement.

For the year 2021, the Group reported NOK 21.7 million in non-recurring items and the majority of those costs relate to the IPO in February 2021 and the mentioned license fee for Qybele and legal costs regarding the dispute.

14

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

The Group’s assets totalled NOK 1 275.8 million in Q4 2021.

This was an increase of NOK 32.3 mill. from Q4 2020. As at Q4 2021, the Group’s equity amounted to NOK 544.8 mill., an increase of NOK 247.3 mill. since Q4 2020. In the listing pro­­­cess in February, NOK 200 mill. of equity was raised through an issue of 4 mill. new shares. The equity ratio was 42.7 per cent in Q4 2021, compared to 23.9 per cent in Q4 2020.

Current and non-current liabilities to financial institutions were NOK 437.3 million in Q4 2021 compared to NOK 541.8 million in Q4 2020. The loan facility in Nordea was refinanced in Q1 2021 in connection with the listing, and debt was reduced by NOK 156.2 million. A new senior facility of NOK 450.0 million was established together with a revolving credit facility of NOK 70.0 million.

CONSOLIDATED STATEMENT OF CASH FLOWS

Net cash flow from the Group’s operations during Q4 2021 was NOK -18.7 million. The difference between net cash flow from operations and profit before tax of NOK 12.9 million 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 Q1 and Q3), and the latter part of the semester the cash is used for ongoing operations.

The net cash outflow from investing activities amounted to NOK 5.2 million during Q4 2021. Of that, NOK 4.2 million relates to capitalised development costs for new programmes at Oslo Nye Høyskole and NTech and NOK 1.0 million relates to investments in fixed assets such as IT equipment and computers. The net cash outflow from financing was NOK 20.4 million during Q4 2021. This is the principal portion of lease liabilities in accordance with IFRS 16 and repayment of NOK 10 million in accordance with the amortisation plan for the loan facility.

During Q4 2021, the Group had a net decrease in cash and cash equivalents of NOK 44.1 million. As at the balance sheet date, the Group had cash and cash equivalents of NOK 63.5 million, compared to NOK 17.8 million at the same date in 2020.

SHAREHOLDER INFORMATION

The Group’s share capital was NOK 15.2 million as at 31 December 2021, consisting of 36 193 814 ordinary shares, each with a par value of NOK 0.42. All the shares have been 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 2021 was 1 700.

LUMI GRUPPEN quarterly report Q421

DIVIDEND

EVENTS AFTER THE BALANCE SHEET DATE

The Group’s dividend policy is to strive to distribute dividends to the shareholders. The Group’s target pay-out ratio is 60-80 per cent of profit in the future. However, the amount of any dividend to be distributed will be dependent on, inter alia, the Group’s investment requirements and rate of growth. There can be no assurance that in any given year a dividend will be proposed or declared, or if proposed or declared, that the dividend amount will be as contemplated above.

For 2021, a dividend of NOK 1 per share will be proposed. This is equal to 60 % of profit in 2021.

No relevant events.

FINANCIAL POLICY

The Group intends to maintain a stable leverage ratio by returning excess capital to shareholders via dividends. The target leverage ratio is 2.5x net debt (current and noncurrent bank borrowings less cash and cash equivalents) to adjusted EBITDA before the impact of IFRS 16. At the balance sheet date, the leverage ratio was 2.9x adjusted EBITDA, which is well within the bank covenant.

RISK AND UNCERTAINTY FACTORS

The Group’s operations are affected by several external factors. The risk factors considered to be most significant to the Group's future development are market risk, credit risk and liquidity risk. Please refer to Chapter 1 of the Information Document published on 16 February 2021 for a detailed description of the Group’s risk factors.

DISCLAIMER

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.

BOARD AND MANAGEMENT CONFIRMATION

Today, the Board of Directors, the Chief Executive Officer and the Chief Financial Officer have reviewed and approved the Lumi Gruppen AS Condensed interim financial statements as of 31 December 2021. To the best of our knowledge, we confirm that: — the condensed consolidated interim financial statements for the twelve months of 2021, give a true and fair view of the Group's consolidated assets, liabilities, financial position, and results of operations.

— the interim report for the twelve months of 2021 includes a fair review of important events that have occurred during the period and their impact on the condensed financial statements, the principal risks, and major related party transactions.

Oslo, February 16, 2022 The Board of Directors and Management

Helge Midttun Edmund Lazarus Chair Bente Sollid Storehaug

Sylvie Milverton

15

Anne Dahle

Mark Joseph

Erik Brandt

Martin Prytz

CEO

CFO

LUMI GRUPPEN quarterly report Q421

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.

16

LUMI GRUPPEN quarterly report Q421

Sonans Sonans is the largest operating segment of the Group and constitutes about 70 per cent of the total revenues and has enrolled 8 437 students in the autumn semester. Sonans is a well-known brand in Norway and the largest private candidate educator.

Operating Revenue NOKm

Number of enrolled students

400

8000

363 377

300

6000

200

4000

100 0

87

94

21 20 Q4

Total Operating Expenses NOKm 250

58% online 5837 4911

8 437

3526

students

1743

2000

21 20 YTD

232 227

200

0

Students ­­— Campus vs. Online (2021)

Q421 online

Q420 campus

Adjusted EBIT NOKm 200

Adjusted EBIT % 111

91

150

42% campus

35

30 26

25

25

18

150 100

15

100 61

60

50

50 0

21 20 Q4

21 20 YTD

0

16

21 20 Q4

Total revenues ended at NOK 86.6 million in the fourth quarter, an 8 per cent decrease from the same period last year. Due to the Covid-19 pandemic, Sonans experienced an extraordinary shift from students attending classes on campus to online studies. The number of online students grew by 32 per cent in the autumn semester (Q3 and Q4) with additional revenue of NOK 12 million (NOK 6 million for the fourth quarter). However, since prices for online courses are approximately 25 per cent lower, this has not been sufficient to balance out lost sales and hence reduced profit from lower campus course sales this autumn and for the quarter.

17

5

25

21 20 YTD

0

21 20 Q4

21 20 YTD

Total operating expenses increased by NOK 0.7 million in Q4 2021 compared to the same period in 2020.

Personnel expenses decreased by NOK 2.2 million due to adjustment of bonus accruals and some savings related to cost measures implemented. Other expenses increased

by NOK 2.9 million, mainly as a result of higher marketing spend in the quarter and slightly higher bad debt cost driven by more online course sales. In general, the online bad debt cost is on average twice as high as campus.

Adj. EBIT ended at NOK 15.9 million, compared to NOK 24.8 million in 2020, with an EBIT margin of 18.4 per cent in Q4 2021 compared to 26.3 per cent in Q4 2020.

LUMI GRUPPEN quarterly report Q421

In the student intake for the 2022 spring semester, a total of 2 580 students signed up for courses at Sonans, down from 2 929 students in 2021. The total number of students that signed up for online courses increased by 51 students to 1 302, while the number of new campus students decreased by 400 students to 1 278. In revenue, this corresponds to a decline of approximately 12-13 per cent compared to last year’s spring intake and to 1H revenues.

In the short term, the shift in student mix is a challenge for Sonans and will impact revenues and profitability in the first half of 2022 as online courses are priced lower than similar campus subjects. A large part of Sonans’ cost base is fixed in the short term, and this impacts profitability.

Consequently, Sonans is in the process of launching extensive cost cutting measures totalling NOK 24-26 million. Of this amount, NOK 10-12 million in annual savings is already implemented from January 2022. The remaining NOK 14 million is related to closing three campuses from

the second half of 2022. This will also have an impact on revenue with lost campus sales, but given the online shift continuing, most likely this will result in a net positive saving and reduced liability (i.e., structural cost) for Sonans. The assessment of the campus network will continue into 2022 and work is ongoing to identify additional measures and is an integrated part of the new digital strategy for Sonans.

In addition to cost measures, prices on online courses will be adjusted by up to 10 per cent effective from February 2022. In addition, a new and unique digital campus platform will be launched to align online student offerings with campus offerings. This is also a key initiative to bridge the price gap between online courses and campus courses.

The negative revenue impact from migration to online will also to some extent be counteracted by a change in commercial terms for online in 2022. Online revenues will be distributed over a period averaging 6-9 months compared to fixed 12 months. The new commercial terms are closer in line with the campus model.

Key figures

NOK MILLION Q421

QUARTERS FULL YEAR Q420

2021

2020

CHANGE 20 - 21 Q4

YR

Operating revenue

86.6

94.4

363.1

376.5

-8.3%

-3.6%

— Campus

63.6

76.9

275.2

312.7

-17.3%

-12.0%

— Online

23.0

17.5

87.9

63.8

31.4%

37.8%

Total operating revenue

86.6

94.4

363.1

376.5

-8.3%

-3.6%

Payroll expenses Payroll expenses in % of operating revenue

34.2

36.4

128.3

125.3

-6.1%

2.5%

39.0%

39.0%

35.0%

33.0%

2.4%

6.3%

26.4

23.5

104.1

101.7

12.3%

2.3%

30.0%

25.0%

29.0%

27.0%

22.5%

6.1%

Total operating expenses

60.6

59.9

232.4

227.0

1.1%

2.4%

Adjusted EBITDA

26.0

34.5

130.6

149.5

-24.6%

-12.6%

Other expenses Other expenses in % of operating revenue

30.0%

36.6%

36.0%

39.7%

-17.8%

-9.4%

Depreciation and amortization

10.1

9.7

40.0

38.3

3.6%

4.4%

Adjusted EBIT

15.9

24.8

90.7

111.2

-35.7%

-18.5%

18.4%

26.3%

25.0%

29.5%

-29.9%

-15.5%

-

-

-

1.3

-

-100.0%

Number of FTEs

138.9

133.5

139.0

134.0

4.0%

4.0%

Sick-leave

5.1%

4.6%

5.0%

5.0%

10.9%

10.9%

Adjusted EBITDA %

Adjusted EBIT % Non-recurring items

18

LUMI GRUPPEN quarterly report Q421

We strive to ensure that our education programmes are of the very best quality, and that our students reach the goals they have set for themselves.

19

LUMI GRUPPEN quarterly report Q421

Oslo Nye Høyskole Oslo Nye Høyskole* is a university college with a campus in Oslo and a large share of online students. Currently, online revenues constitute 53 per cent of total revenues. The school has enrolled 2 798 students during the autumn intake semester.

Operating Revenue NOKm

Number of enrolled students

200

2000

Students — Campus vs. Online (2021) 66% online

1860

168 141

150

0

46

41

21 20 Q4

21 20 YTD

0

Q421 online

88

80

Q420 campus

Adjusted EBIT NOKm 50

114

100

students

500

Total Operating Expenses NOKm 120

45

47

40

33 28

40

30

27

23

30 20 33

20 28

10

20 0

34% campus

Adjusted EBIT %

60 40

2 798

965

938

1000

100 50

1548

1500

21 20 Q4

21 20 YTD

0

11

12

21 20 Q4

Total revenues were NOK 46.1 million in the fourth quarter, an increase of 12.0 per cent compared to the corresponding quarter last year. For Oslo Nye Høyskole, revenues increased by 14.5 per cent in the fourth quarter. Revenues at ONH Education were down NOK 0.7 million compared to the same period last year due to Covid-19.

The growth was mainly driven by new programmes and strengthened by a high degree of recurring revenues as a significant share of students take three-year bachelor’s

10

21 20 YTD

0

21 20 Q4

21 20 YTD

degrees. The strong growth has enabled the school to achieve scale, which has positively impacted profitability.

Operating costs at Oslo Nye Høyskole increased by NOK 4.9 million in Q4 2021 compared to the same period last year, predominantly caused by a payroll increase of NOK 6.2 million due to the net addition of 13 full-time employees at the end of the previous quarter. In addition, there was an impact from new employees starting during the previous quarters. The growth in headcount is related

* The reporting entity consists of Oslo Nye Høyskole AS, the university college, and ONH Education AS, which generates revenues from sending students abroad to partner universities.

20

LUMI GRUPPEN quarterly report Q421

to preparing the organisation for an increased number of students. Lastly, other costs were reduced by NOK 1.3 million and is mainly related to a lower share of cost from Lumi Services (Group Functions).

Adjusted EBIT was NOK 10.7 million, compared to NOK 11.5 million during the same period last year, with a corresponding EBIT margin of 23.1 per cent in Q4 2021 compared to 27.9 per cent in Q4 2020.

The spring student enrolment was positive, with a total increase of 61 students compared to Q1 2021, an increase of 16 per cent. The positive development was driven mainly by four new bachelor programmes launched autumn 2021.

For bachelor, the growth was 55 per cent corresponding to an increase of 61 students, while for annual programmes, the growth was 50 per cent corresponding to an increase of 28 students. Sales for other and single subjects were down

by 28 students compared to last year. As these courses have a lower price, the impact on total sales and revenue is limited. In addition, a strong bachelor intake autumn 2020 contributed positively and the big cohort of bachelor students from the autumn 2021 intake will contribute with growth for the next school year as well.

For the autumn 2022 student intake, Oslo Nye Høyskole will increase marketing efforts which potentially will increase the number of students further. The student intake autumn 2021 was affected by a relatively late accreditation from the Norwegian Agency for Quality Assurance in Education (NOKUT), which resulted in a relatively short marketing launch period for the new programmes. Oslo Nye Høyskole will continue to launch new programmes in the coming years to pursue its growth ambitions.

Key figures

NOK MILLION Q421

QUARTERS FULL YEAR

CHANGE 20 - 21

Q420

2021

2020

Q4

YR

Operating revenue

46.1

41.2

167.5

141.3

11.9%

18.5%

— Campus

21.7

22.2

77.9

76.0

-2.1%

2.5%

— Online

24.4

19.0

89.6

65.3

28.1%

37.2%

Total operating revenue

46.1

41.2

167.5

141.3

11.9%

18.5%

Payroll expenses Payroll expenses in % of operating revenue

27.4

21.2

88.0

65.6

29.2%

34.2%

60.0%

52.0%

53.0%

46.0%

15.5%

13.2%

5.4

6.7

25.7

22.1

-19.3%

16.5%

12.0%

16.0%

15.0%

16.0%

-27.8%

-1.7%

Total operating expenses

32.8

27.9

113.8

87.7

17.6%

29.7%

Adjusted EBITDA

13.3

13.3

53.7

53.6

-0.1%

0.2%

28.8%

32.2%

32.1%

37.9%

-10.7%

-15.5%

2.6

1.8

9.1

6.6

47.5%

37.4%

Other expenses Other expenses in % of operating revenue

Adjusted EBITDA % Depreciation and amortization Adjusted EBIT

10.7

11.5

44.6

47.0

-7.4%

-5.0%

23.1%

27.9%

26.6%

33.2%

-17.2%

-19.9%

3.8

1.6

9.5

6.3

235.5%

50.7%

Number of FTEs

127.5

84.7

127.5

84.7

50.6%

50.6%

Sick-leave

5.5%

1.9%

5.5%

1.9%

189.5%

189.5%

Adjusted EBIT % Non-recurring items

* The reporting entity consists of Oslo Nye Høyskole AS, the university college, and ONH Education AS, which generates revenues from sending students abroad to partner universities.

21

LUMI GRUPPEN quarterly report Q421

22

LUMI GRUPPEN quarterly report Q421

Consolidation table

NOK MILLION

SONANS

OSLO NYE HØYSKOLE NTECH

GROUP FUNCTIONS

ELIMINATIONS 1)

TOTAL

Q421

Operating revenue

86.6

46.1

-

10.8

-9.8

133.7

— Campus

63.6

21.7

-

-

-

85.3

— Online

23.0

24.4

-

-

-

47.4

Total operating revenue

86.6

46.1

-

10.8

-9.8

133.7

Payroll expenses

34.2

27.4

-

8.9

1.0

71.5

39.0%

60.0%

0.0%

82.0%

-

54%

Payroll expenses in % of operating revenue

26.4

5.4

0.4

3.4

-10.8

24.7

30.0%

12.0%

0.0%

31.0%

-

19%

Total operating expenses

60.6

32.8

0.4

12.3

-9.8

96.3

Adjusted EBITDA

26.0

13.3

-0.4

-1.5

-

37.4

30.0%

28.8%

0.0%

-13.5%

-

28%

10.1

2.6

-

0.7

-

13.4

Other expenses Other expenses in % of operating revenue

Adjusted EBITDA % Depreciation and amortisation Adjusted EBIT

15.9

10.7

-0.4

-2.2

-

24.0

18.4%

23.1%

0.0%

-20.0%

-

18%

-

3.8

-

1.2

-

5.0

Number of FTEs

138.9

127.5

2.0

26.1

-

294.5

Sick-leave

5.1%

5.5%

0.0%

2.2%

-

5.0%

Operating revenue

363.1

167.5

-

43.7

-42.3

532.0

— Campus

275.2

77.9

-

-

-

353.0

87.9

89.6

-

-

-

177.5

Total operating revenue

363.1

167.5

-

43.7

-42.3

532.0

Payroll expenses

128.3

88.0

-

29.0

1.4

246.8

35.0%

53.0%

0.0%

66.0%

-

46%

104.1

25.7

1.6

11.5

-43.7

99.3

29.0%

15.0%

0.0%

26.0%

-

19%

232.4

113.8

1.6

40.6

-42.3

346.1

Adjusted EBIT % Non-recurring items

2021

— Online

Payroll expenses in % of operating revenue Other expenses Other expenses in % of operating revenue Total operating expenses Adjusted EBITDA

130.6

53.7

-1.6

3.1

-

185.9

Adjusted EBITDA %

36.0%

32.1%

0.0%

7.2%

-

35%

40.0

9.1

-

3.8

-0.4

52.5

Depreciation and Amortization Adjusted EBIT

90.7

44.6

-1.6

-0.6

0.4

133.4

25.0%

26.6%

0.0%

-1.4%

-1%

25%

-

9.5

-

12.3

-

21.7

Number of FTEs

138.9

127.5

2.0

26.1

-

294.5

Sick-leave

5.1%

5.5%

0.0%

1.3%

-

4.0%

Adjusted EBIT % Non-recurring items

1) Eliminations includes reclassification of government grants in the amount of NOK 1 million from operating expenses to revenue for Q4 and NOK 1.4 million for 2021

23

LUMI GRUPPEN quarterly report Q421

NOK MILLION

SONANS

OSLO NYE HØYSKOLE NTECH

GROUP FUNCTIONS

ELIMINATIONS

TOTAL

Q420

Operating revenue

94.4

41.2

-

10.2

-9.8

136.0

— Campus

76.9

22.2

-

-

-

99.1

— Online

17.5

19.0

-

-

-

36.5

Total operating revenue

94.4

41.2

-

10.2

-9.8

136.0

Payroll expenses

36.4

21.2

-

11.7

-

69.3

39.0%

52.0%

-

114.0%

-

51%

Payroll expenses in % of operating revenue

23.5

6.7

-

3.1

-9.8

23

25.0%

16.0%

-

30.0%

-

17%

Total operating expenses

59.9

27.9

-

14.8

-10.2

92.3

Adjusted EBITDA

34.5

13.3

-

-4.5

0.4

43.7

36.6%

32.2%

-

-44.0%

-

32%

9.7

1.8

-

0.9

-

12.4

Other expenses Other expenses in % of operating revenue

Adjusted EBITDA % Depreciation and amortization Adjusted EBIT Adjusted EBIT % Non-recurring items

24.8

11.5

-

-5.4

-

31.3

26.3%

27.9%

-

-52.8%

-

23%

-

1.60

-

5.60

-

7.20

Number of FTEs

133.5

84.7

-

26.1

-

244.3

Sick-leave

4.6%

1.9%

-

1.2%

-

3.3%

Operating revenue

376.5

141.3

-

43.2

-42.6

518.4

— Campus

312.7

76.0

-

-

-

388.7

63.8

65.3

-

-

-

129.1

Total operating revenue

376.5

141.3

-

43.2

-42.6

518.4

Payroll expenses

125.3

65.6

-

33.9

-

224.8

33.3%

46.4%

-

78.6%

-

43%

101.7

22.1

-

6.7

-43.2

87.3

27.0%

15.6%

-

15.5%

-

17%

227.0

87.7

-

40.6

-43.2

312.1

2020

— Online

Payroll expenses in % of operating revenue Other expenses Other expenses in % of operating revenue Total operating expenses Adjusted EBITDA

149.5

53.6

-

2.5

0.6

206.3

Adjusted EBITDA %

39.7%

37.9%

-

5.9%

-1.5%

40%

38.3

6.6

-

3.9

-

48.8

Depreciation and amortization Adjusted EBIT Adjusted EBIT % Non-recurring items

111.2

47.0

-

-1.3

0.6

157.5

29.5%

33.2%

-

-3.1%

-1.5%

30%

1.3

6.3

-

17.3

-

24.8

Number of FTEs

133.5

84.7

-

26.1

-

244.3

Sick-leave

4.6%

1.9%

-

1.8%

-

3.4%

24

LUMI GRUPPEN quarterly report Q421

Condensed interim financial statement and notes

25

LUMI GRUPPEN quarterly report Q421

Consolidated statement of profit or loss NOK 1000 Note Q421 Q420 YTD21

2020

Revenue 2,3 132 642 135 764 530 673

516 996

1 048

Government grants

2,3

Other operating income

2,3

-

-

400

354

Total revenue

133 690

135 975

532 073

518 407

Payroll expenses 72 435

69 315

248 697

224 788

Depreciation and amortisation expenses 4,5,6 14 229

16 199

55 435

63 968

Other operating expenses 28 015 Total operating expenses

114 679

Operating profit/(loss) (EBIT) 3 19 011

211

1 000

1 057

26 358

116 277

96 990

111 873

420 409

385 746

24 102

111 664

132 661

Interest income

18

345

1 136

1 022

Financial income

207

1

93

177

-5 682

-11 560

-36 206

-50 176

Financial expense

-677

-1 629

-1 443

-2 599

Net financial items

Interest expense

-6 134

-12 842

-36 420

-51 576

Profit/(loss) before income tax 12 877

11 260

75 244

81 085

3 540

2 885

16 174

18 196

Profit/(loss) for the year 9 337 8 375

59 070

62 889

Income tax

Profit/(loss) from continuing operations

9 337

8 375

59 070

62 889

Profit/(loss) from discontinuing operations

-

-

-

-23 913

Profit/(loss) for the year 9 337

8 375

59 070

38 976

26

LUMI GRUPPEN quarterly report Q421

Consolidated statement of financial position ASSETS at 31 December NOK 1000 Note

2021

2020

4

17 448

-

Intangible assets 4

800

11 112

NON-CURRENT ASSETS

Concessions, patents etc

Deferred tax asset 2 657

49

957 032

957 032

Goodwill 4

Total intangible assets 977 937

968 194

Leasehold improvements 5

1 098

1 553

Right-of-use assets 6

136 160

150 127

11 965

12 225

Total tangible assets 149 223

163 905

Investments in shares 1 559

1 499

Total non-current financial assets 1 559

1 499

1 128 718 Total non-current assets

1 133 597

Office machinery and equipment

5,10

CURRENT ASSETS

22 345

23 970

Earned, not invoiced 40 541

51 879

Accounts receivables 7,10 Other current assets Cash and bank deposits

8

20 655

16 194

63 505

17 846

147 046 Total current assets

109 889

Total assets 1 275 765

1 243 487

27

LUMI GRUPPEN quarterly report Q421

Consolidated statement of financial position EQUITY AND LIABILITIES at 31 December NOK 1000 Note

2021

2020

15 201

2 995

Treasury stock -81

-42

Share premium 470 218

291 632

Other reserves -1 224

-1 236

EQUITY

Share capital 9

Retained earnings

60 697

4 226

Total equity

544 811

297 574

Pension liabilities

2 319

2 201

Deferred tax

NON-CURRENT LIABILITIES

-

2 732

Liabilities to financial institutions

10

437 292

541 800

Non-current lease liabilities

6

99 426

113 271

Total non-current liabilities 539 037

657 272

CURRENT LIABILITIES

Liabilities to financial institutions

10

-

54 002

Current lease liabilities

6

46 200

44 229

Derivatives -

496

2 052

5 558

Trade creditors

Tax payable

15 815

22 792

Public duties payable

18 189

16 079

Unearned revenue

76 462

82 195

Contingent consideration

-

30 000

Other current debt

33 198

33 290

Total current liabilities

191 916

288 641

Total liabilities

737 009

945 913

Total equity and liabilities

1 275 765

1 243 487

28

LUMI GRUPPEN quarterly report Q421

Consolidated statement of cash flows NOK 1000 At 31 December Q421

2021

2020

CASH FLOW FROM OPERATIONS

Profit before income taxes

12 876

75 184

56 617

Taxes paid in the period

-

-22 415

-15 659

Gain/loss from sale of fixed assets

-

-

146

Loss on sale of subsidiary (Sonans Karriere)

-

-

21 945

Interest expense

6 006

36 201

35 831

Interest paid

-3 808

-17 243

-35 864

Depreciation 14 222

55 426

66 203

-

-

Interest lease payment

-

Change in trade debtors

7 004

-1 145

-1 227

Change in other debtors

3 794

-4 350

-

Change in trade creditors

-995

-3 619

-4 321

Differences in expensed pensions and payments in/out of the pension scheme

-

-

-1 773

Items classified as investments or financing

-

-613

1 320

Change in other current assets and liabilities

-57 750

10 938

35 714

Net cash flow from operations -18 651

128 364

158 932

-

100

CASH FLOW FROM INVESTMENTS

Proceeds from sale of fixed assets

-

Purchase of fixed assets

-1 000

-5 738

-6 529

Purchase of intangible assets

-4 231

-12 761

-6 797

Payment to buy shares in other companies

-

-60

-

Payment to buy subsidiaries (Bjørknes Education and Bjørknes Høyskole)

-

-30 000

-30 000

Net cash derecognised upon sale of subsidiary

-

-

-1 895

Net cash flow from investments -5 231

-48 559

-45 121

CASH FLOW FROM FINANCING

Payment of principal portion of lease liabilities

-10 355

-41 208

-40 769

Repayment of liabilities to financial institutions

-10 000

-166 200

-68 001

Repayment of other loans

-

-3 900

-21 999

New equity received

-

200 000

-

Transaction costs

-

-22 979

-

Purchase of treasury shares

-

-

-573

Net cash flow from financing

-20 355

-34 287

-131 342

Net change in cash and cash equivalents

-44 096

45 659

-17 531

Cash and cash equivalents at the beginning of the period

107 601

17 846

35 378

Cash and cash equivalents at the end of the period 63 505

63 505

17 846

70 000

70 000

70 000

Additional unused credit facilities

29

LUMI GRUPPEN quarterly report Q421

Consolidated statement of changes in equity

NOK 1000

SHARE CAPITAL

SHARE PREMIUM

TREASURY STOCK

OTHER RESERVES

RETAINED EARNINGS

TOTAL

2 995

291 632

-42

-1 236

4 225

297 574

-

-9 246

-

-

-

-9 246

12 206

187 833

-39

-

-

200 000

-

-

12

-2 598

-2 586

2021

Equity at 01 January 2021 Listing costs Euronext Growth Issued share capital

IFRS adjustments retrospectively of balance at 1 Jan. 2021

-

Total income/expense for the year

-

-

-

-

59 070

59 070

15 201

470 218

-81

-1 224

60 697

544 811

2 995

292 218

-38

-1 855

-34 750

258 570

Purchase of treasury stock

-568

-4

-572

-18

-18

Equity at 31 December 2021

2020

Equity at 01 January 2020

Other equity changes IFRS Adjustments

-

-

-

619

-

619

Total income/expense for the year

-

-

-

-

38 975

38 975

2 995

291 632

-42

-1 236

4 225

297 574

Equity at 31 December 2020

30

LUMI GRUPPEN quarterly report Q421

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 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 organizes 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 2020.

Discontinued operations Discontinued operations are defined as a component of the Lumi Group or Group entity that has been disposed of and represents a separate major line of business.

2 Revenue Lumi Gruppen earns revenue from educational services.

The educational services include one university college and private candidate schools across Norway. Services are delivered both on campus and online. In 2019 the Group also delivered counseling and coursed for unemployed individuals through contracts with NAV via Sonans Karriere AS. Sonans Karriere AS was sold on 3 June 2020.

Services are delivered over time to the campus students and at a point in time to the online students who buy a course and then have unlimited access to the course content.

Educational service revenue to campus students is earned over time (not at a point in time) and is allocated across the school year as services are delivere. Educational service revenue to online students are distributed evenly over 12 months from signing of the course contract.

Invoicing for the educational services is done at the beginning of each school semester, in September and January. Invoices sent in September are for both the semester and for the entire school year fees. This creates the posting of the deferred revenue 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.

NOK 1000 Q421

Q420

2021

2020

DISAGGRETATING OF REVENUE

-

-

-

44 005

Education 132 664

Services to government insititutions

134 917

530 570

517 206

— of which campus

85 264

95 574

354 015

389 165

— of which online

47 400

39 343

176 555

128 041

Government grants

1 048

211

1 048

1 057

Other income

-22

847

455

144

532 073

562 412

Total revenue 133 690 135 975 in which discontinued operations Total revenue from continuing operations

133 690

-

-

- 44 005

135 975

532 073

518 407

Revenue for discontinued operations is related to services to government institutions.

31

LUMI GRUPPEN quarterly report Q421

3 Operating segments

TOTAL

NOK 1000 SONANS

OSLO NYE HØYSKOLE NTECH

OTHER/HEADQUARTER

ELIMINATIONS AND IFRS

CONTINUING OPERATIONS

10 800

-9 774

133 690

-10 800

-10 800

Q421

Total revenue

86 564

— of which management fee

46 100

-

Total expenses

60 559

36 612

421

13 443

-10 585

100 450

— of which management fee

-9 272

-1 128

-375

-25

-

-10 800

Depreciation and amortisation

10 063

2 600

-

700

866

14 229

EBIT

15 942

6 888

-421

-3 343

-55

19 011

TOTAL

NOK 1000 SONANS

OSLO NYE HØYSKOLE NTECH

OTHER/HEADQUARTER

ELIMINATIONS AND IFRS

CONTINUING OPERATIONS

43 698

-42 195

532 073

-43 698

-43 698

2021

Total revenue

363 075

167 495

-

— of which management fee Total expenses

232 430

123 245

1 647

52 852

-45 200

364 974

— of which mng. fee

-37 115

-4 500

-1 500

-250

-

-43 365

Depreciation and amortisation

39 989

9 100

-

3 751

2 595

55 435

EBIT

90 656

35 150

-1 647

-12 905

410

111 664

32

LUMI GRUPPEN quarterly report Q421

4 Intangible assets At each financial year end, Lumi Gruppen reviews the residual value and useful life of its assets, with any estimate changes accounted for prospectively over the remaining useful life of the asset.

The Group has assessed that there is no need for impairment of goodwill as at 31 December 2021.

GOODWILL HELSEHØYSKOLEN

GOODWILL OSLO NYE HØYSKOLE

GOODWILL LUMI GRUPPEN

GOODWILL SONANS EDUCATION

TOTAL

2 834

208 854

591 500

153 844

957 032

Additions -

-

-

-

-

Additions through acquisitions -

-

-

-

-

Disposals -

-

-

-

-

Cost at 31 December 2021 2 834 208 854 591 500

153 844

957 032

NOK 1000 COST

Cost at 31 December 2020

AMORTIZATION AND IMPAIRMENT

Accumulated at 31 December 2020 -

-

-

-

-

Impairment for the year -

-

-

-

-

Accumulated amortization -

-

-

-

-

Accumulated at 31 December 2021 -

-

-

-

-

2 834

208 854

591 500

153 844

957 032

n/a

n/a

n/a

n/a

n/a

Carrying amount at 31 December 2021 Amortization method Estimated useful life

Impairment tests Impairment tests Impairment tests Impairment tests Impairment tests

STUDENT CONSESSIONS, NOK 1000

CONTRACTS PATENTS ETC.

TOTAL

COST

Cost at 31 December 2020

33 000

6 972

39 972

Additions -

12 761

12 761

Additions through acquisitions -

-

-

Reclassification to leasehold improvements

-

-

-

Disposals -

-

-

Disposals through sale of subsidiary

-

-

-

Cost at 31 December 2021 33 000

19 733

52 733

460

28 860

AMORTIZATION AND IMPAIRMENT

Accumulated at 31 December 2020 28 400 Amortization for the year

3 800

1 826

5 626

Impairment for the year

-

-

-

Reclassification to leasehold improvements

-

-

-

Accumulated at 31 December 2021 32 200

2 286

34 486

Carrying amount at 31 December 2021 800

17 448

18 248

Amortization method Estimated useful life

33

Degressive

Linear

2-4 years

5 years

LUMI GRUPPEN quarterly report Q421

5 Property, plant and equipment

NOK 1000

OFFICE LEASEHOLD MACHINERY & IMPROVEMENTS ART EQUIPMENT

TOTAL

COST

Cost at 31 December 2020 12 550

376

37 525

50 451

428

-

5 804

6 232

Additions through acquisitions -

-

-

-

Reclassification

-

-

-

-

Disposals through sale of subsidiary

-

Additions

-

-529

-529

376

42 800

56 124

Accumulated at 31 December 2020 10 942

-

25 676

36 618

Depreciations for the year

908

-

5 536

6 444

Reclassification

-

-

-

-

Cost at 31 December 2021 12 948 DEPRECIATIONS AND IMPAIRMENT

Disposals through sales -

-

-

-

Accumulated at 31 December 2021 11 850

-

31 212

43 062

Carrying amount at 31 December 2021 1 098

376

11 589

13 063

Depreciation method Estimated useful life

34

Linear

Linear

Linear

5-3 years

In line with lease contract

In line with lease contract

LUMI GRUPPEN quarterly report Q421

6 Leasing Amounts recognised in the balance sheet NOK 1000 at 31 December

2021

2020

Premises 131 872

146 429

Equipment 4 288

3 699

RIGHT-OF-USE ASSETS

Total

136 160

150 127

Depreciation method Straight-line

Straight-line

Useful life

LEASE LIABILITIES

46 200

44 229

Non-current 99 426

113 271

Total

145 626

157 500

Depreciation of right of use asset

43 363

44 090

Settlement with termination

-

-102

Interest expense

7 365

8 732

RIGHT-OF-USE ASSETS

TOTAL

Current

AMOUNTS RECOGNISED IN THE STATEMENT OF PROFIT OR LOSS

NOK 1000

Cost at 31 December 2020

229 818

229 818

Additions

30 190

30 190

Additions through acquisitions -

-

Disposals -795

-595

Cost at 31 December 2021 259 213

259 413

DEPRECIATIONS AND IMPAIRMENT

Accumulated at 31 December 2020 79 691

79 691

Depreciations for the year

43 362

43 362

Impairment -

-

Disposals through sales -

-

Accumulated at 31 December 2021

123 053

123 053

Carrying amount at 31 December 2020 150 127

150 127

Carrying amount at 31 December 2021 136 160

136 360

Depreciation method

Linear

Estimated useful life

35

In line with lease contract

LUMI GRUPPEN quarterly report Q421

7 Trade receivables NOK 1000 at 31 December 2021

2020

Trade receivables 33 584

39 914

27 978

30 379

Loss allowance -11 239

-15 944

-13 276

-15 193

Total trade receivable, net 22 345

23 970

— of which Sonans — of which Sonans

8 Other receivables Accounting policies Other receivables consist of prepaid expenses and other debtors.

NOK 1000 at 31 December 2021

2020

Prepaid expenses 20 589

16 151

Other debtors 66 Total other receivables

36

20 655

43 16 194

LUMI GRUPPEN quarterly report Q421

9 Share capital and shareholder information On 17 February 2021 Lumi Gruppen AS was listed on the Euronext Growth index at the Oslo Stock Exchange. As part of the process, the Company raised NOK 200 million of new

equity in a primary issue. As part of the listing, the Company also converted all shares into one ordinary class of shares.

Parent company (LUMI)

NOK

NUMBER

PAR VALUE

CAPITALISED

SHARE CAPITAL

Ordinary shares

36 193 814

0.42

15 201 402

Cost at 31 December 2021

36 193 814

15 201 402

ORDINARY

SHARES

% OWNERSHIP

At 31 December 2021 SHAREHOLDERS

BNP Paribas Securities Services

5 022 046

13.9

JPMorgan Chase Bank, N.A., London

1 980 000

5.5

Avanza Bank AB

1 720 068

4.8

Pershing LLC

1 650 705

4.6

J.P. Morgan Bank Luxembourg S.A.

1 606 609

4.4

Verdipapirfondet Holberg Norge

1 100 000

3.0

The Northern Trust Comp, London Br

1 016 561

2.8

Vevlen Gård AS

1 010 000

2.8

Pareto aksje norge verdipapirfond

1 003 371

2.8

Erik Brandt

969 978

2.7

Top 10 shareholder/nominee

17 079 338

47.2

Total 36 193 814

52.8

37

LUMI GRUPPEN quarterly report Q421

10 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 February 2021 Lumi Gruppen AS refinanced its bank debt in Nordea. NOK 156 million of the proceeds from the share issue were used to reduce the interest-

bearing debt. Following the refinancing the Company has seniorbank debt of NOK 450 million, and a revolving credit facility of NOK 70 million. The gearing ratio was thus reduced and Lumi Gruppen AS obtained a lower interest margin on the new facility.

The loan agreement is governed by a leverage ratio covenant. The group is compliant with this covenant as at 31 December,2021.

NOK 1000 at 31 December

2021

2020

437 292

541 800

NON-CURRENT INTEREST-BEARING LIABILITIES AS PRESENTED IN THE STATEMENT OF FINANCIAL POSITION

Non-current liabilities to financial institutions Current liabilities to financial institutions

-

54 002

Total liabilities to financial institutions

437 292

595 802

Total amount borrowed 440 000

606 203

SPECIFICATION OF LIABILITIES TO FINANCIAL INSTITUTIONS

Capitalized bank fees -2 708

-10 401

437 292

595 802

440 000

606 203

Total 440 000

606 203

Total liabilities to financial institutions COLLATERAL AND GUARANTEES NOMINAL VALUE OF DEBT WITH COLLATERAL SECURITY

Liabilities to financial institutions

BOOK VALUE OF COLLATERAL PLEDGED

Accounts receivable 22 345

23 970

13 062

8 679

Total 35 407

32 649

Office machinery and equipment

COVENANT

— Leverage ratio (total net debt/EBITDA)

The covenant is tested Q2 and Q4. The Group is in compliance with the covenant as at 31 December 2021.

38

LUMI GRUPPEN quarterly report Q421

11 Related parties Balances and transactions between the Company and its subsidiaries, which are related parties to the Company, have been eliminated on consolidation.

There are no significant related party transactions for Lumi Gruppen in 2021.

12 Subsidiaries

OWNERSHIP/

LOCATION VOTING RIGHT

%

Lumi Bidco AS Oslo

100

Lumi Servises AS Trondheim

100

Sonans Privatgymnas AS Trondheim

100

ONH Education AS (acquired 25.06.2019)

Oslo

100

Oslo Nye Høyskole AS (acquired 25.06.2019)

Oslo

100

Norwegian School of Technology AS Trondheim

100

13 Contingent liabilities Dispute on correct calculation of fee for Qybele LMS As part of the transaction where Lumi Gruppen acquired Oslo Nye Høyskole (Previously Bjørknes Høyskole AS) in 2019, Bjørknes Høyskole entered into an extension of several agreements regarding the IT system “Qybele” and certain services connected to Qybele. In Q2 2021 one of the counterparties raised a claim that the calculation method which has been used to calculate the fee since 2017 is incorrect and has requested additional payment

39

of around NOK 3 million for the 2020 fee. Further, that counterparty has reserved its right to make similar claims for previous years, although no such claims have currently been brought. Potentially the claim could be in the amount of NOK 10 million for the period including late payment interest. Lumi Gruppen disputes the claim and has made no accrual for it in the financial accounts based on a comprehensive legal assessment.

LUMI GRUPPEN quarterly report Q421

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: Pro Forma revenues Pro Forma revenues are revenues for the Group adjusted for sold or acquired entities. Sonans Karriere AS was disposed from the Group in early June 2020, and the financials of Sonans Karriere AS are included in the reported consolidated reported revenues for the Group until and including May 2020.

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.

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 subsidiar-

40

ies 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.

Adjusted operating cash flow Adjusted operating cash flow is based on Net Cash Flow from Operations excluding non-recurring items, interest cost and interest paid and including capex. The group has presented this APM because it considers it to be an important supplemental to understand the normalized cash flow of the Group when excluding non-recurring items.

Adjusted cash conversion Adjusted operating cash flow divided byprofit before income taxes (pre tax profits)

LUMI GRUPPEN quarterly report Q421

Company information

LUMI SERVICES AS

SONANS PRIVATGYMNAS AS

OSLO NYE HØYSKOLE AS

NORWEGIAN SCHOOL OF TECHNOLOGY AS

ONH EDUCATION AS

Tromsø

Bodø

Both local presence with campuses and online offering

Trondheim

Hamar Bergen

Oslo Sandvika Drammen Porsgrunn

Lillestrøm Oslo Campus — Oslo Nye Høyskole Ski Fredrikstad Tønsberg

Stavanger Kristiansand

41

LUMI GRUPPEN quarterly report Q421

Management

Board of directors

Phone

Erik Brandt

Helge Midttun

Chief Executive Officer

Chairperson

Martin Prytz

Edmund Lazarus

Chief Financial Officer & Investor Relations

Director

+47 915 04 070 Office Address

Sandakerveien 116 0484 Oslo Post Address

Postboks 943 7409 Trondheim Website

www.lumigruppen.no IR contact

ir@lumigruppen.no

Marit Aamold Trysnes

Mark Joseph Director

Managing Director Sonans

Morten Danielsen

Bente Sollid Storehaug Director

Managing Director ONH

Line Lunde

Sylive Milverton Director

Director of HR

Terje Ravnsborg

Anne Dahle Employee Representative

Director of IT

Financial calendar Q1 22 11 May 2022 Q2 22 25 August 2022 Q3 22 04 November 2022 Q4 22 18 February 2023

LUMI GRUPPEN quarterly report Q421

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