Oslo Nye Høyskole well positioned, Sonans adapted to online shift o Revenue at
NOK 133 millionfor the first quarter (-0.5%) o Sonans with growth in online revenue while campus revenue is behind last year o Price adjustments implemented for Sonans to align price levels across student offerings o Strong performance for Oslo Nye Høyskole (ONH) with revenues up 17 per cent in Q1`22 vs. last year o EBIT at NOK 21 millionfor the first quarter (-30.0%) o Cost programme implemented, but lower average price per student affects margins o Full-year effect of ramp-up of costs related to new programmes at Oslo Nye Høyskole o Cost measures totalling NOK 10-12 millionimplemented to reflect online shift o Closing 3 campuses in July 2022, will reduce annual operating costs by additional NOK 14mill. o Sonans o New digital campus structure well received by students, full launch autumn 2022 o Efficiency measures progressing as planned o Oslo Nye Høyskole (Bjørknes Høyskole) o Wellpositioned and strong start to autumn student intake o Focus on expanding student offerings and increasing number of students further Important milestones reached in digitalization of student offerings Focus during the first quarter of 2022 has been to execute on the company's strategy. For Sonans, significant steps have been taken to align operations with the shift in market trends and Oslo Nye Høyskole (ONH) continued to improve its market position and gain market share. As a response to the continued migration from campus courses to online courses, Sonans has introduced a new digital campus structure named Live. Live 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. During the first quarter Sonans has launched a pilot version of Live with a very promising outcome. In a recent survey, students attending Live rated the new student offering 4.7 out of 5, while campus courses were rated 4.5 and existing online offerings were rated 4.4. Consequently, Live will be fully launched effective from August 2022with a special and newly designed marketing campaign commencing in May 2022. Oslo Nye Høyskole (ONH) continued the strong performance in the first quarter 2022 with a record high number of students attending courses. The growth was primarily driven by a solid 55 percent increase in the number of bachelor students. By continuing to increase multi-year bachelor programmes' share of revenue, revenue visibility will increase in the business model and reduce operational risk. ONH's solid performance is a good illustration that the expansion of study programmes has been successful and well adapted to students' focus and needs. ONH launched 5 new programmes in the autumn 2021 and will continue to focus on growing the business. 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 will be launched in 2023. Financial results Revenues declined by 0.5% per cent to NOK 132.7 millionin Q1 2022, compared to NOK 133.3 millionin Q1 2021. Revenue was positively impacted by a significant increase in the number of students at Oslo Nye Høyskole with NOK 6.6 millionin higher sales for the quarter, corresponding to 17.2 per cent growth. For Sonans, online sales have been strong with NOK 29.1 millionfor the quarter and the online revenue share increased from 26.5% in 2H of 2021 to 33.2% in Q1 2022. The increase is in part driven by the new commercial terms for online from 1 January 2022. For campus, volumes continued to decline and ended at NOK 58.6 millioncompared to NOK 63.6 millionin Q4 2021 and NOK 75.3 millionin Q1 2021. As commented in previous interim financial reports, lower sales for campus have not been balanced out by the stronger online sales due to the difference in price for the offerings. Adjusted total operating expenses increased by 8.1 per cent to NOK 98.3 millionin Q1 2022, compared to NOK 90.9 millionin Q1 2021. The increase is mainly driven by the investments made in Oslo Nye Høyskole for the new programmes. The investments are mainly additional employees required for the launch of the new programmes and most of them started in the second half of 2021. Therefore, the increase does not represent additional costs this year, but the full year effect. For Sonans, cost measures were implemented with effect from January 2022to compensate for lower campus volumes and the online shift. The measures are expected to contribute with NOK 10-12 millionthis financial year. In Q1 2022, Sonans reports savings of NOK 3.5 millionmainly related to personnel costs. In addition to the cost measures, it was decided earlier this year to close three campuses from the second half of 2022, which will add another NOK 14 millionto annual cost savings. Adjusted EBIT ended at NOK 20.8 million, a decrease of 30 per cent compared to the same period last year. Strong market for private education The demand for higher education in Norwayis still high even if the total number of applicants for higher education to NUCAS ("Samordna Opptak") fell by 12 per cent from 2021 to approximately 135 000 applicants in 2022. Available admission places remained stable from last year at approximately 62 000, which means that there are still more than twice as many applicants than available places. Even if the overall number of applicants to higher education in Norwayfell, ONH has managed to increase the number of student applicants by 8 percent in total and 21% for bachelor programmes as of 20 April and continued to gain market share. The positive development for Oslo Nye Høyskole is expected to continue with the total number of students reaching a new all-time high this autumn. Although early in the intake cycle for the autumn, Sonans is experiencing slightly weaker student intake compared to last year. Net sales per week 17 are down 18 per cent compared to same period last year. However, Sonans will start marketing Live, the new digital campus, in May and extensive marketing campaigns will be executed throughout the summer. The most important campaign period is from 20 July to the end of August. The overall long-term financial ambitions for the Group remain unchanged. In the Q4 2021 report and presentation, Lumi Gruppenstated that the EBIT margin for 2022 is expected to be on par with 2021 with improved profitability materialising in the second half of 2022. The preconditions for such an expectation are continued solid sales for ONH and improved market conditions for Sonans with slightly higher volumes compared to same period last year. Cost savings measures are implemented together with price adjustments, but volume growth is however still necessary to achieve an improvement in the profitability for the Group this financial year. Lumi Gruppenis the market leading provider of private education in Norway. Through a combination of high student satisfaction and a unique learning concept, the Group has established a competitive edge and the board is confident that the Group is well positioned to exploit market opportunities going forward. First quarter report and presentation material Please see attached the first quarter report and Q1 Presentation for further information. The quarterly report, presentation materials with key figures will also be available on the company's website at Erik Brandtand CFO Martin Prytzwill present the company's results on Tuesday May 10at 09:00. The presentation will be held without physical participants on Teams and the presentation will be held in English and transferred via live webcast. Please follow this link to attend: https://teams.microsoft.com/l/meetup-join/19%3ameeting_Zjk4MmMyMTgtNDU5Yi00ZTJiL WFmNWQtODQwMTRmMjNiYzAz%40thread.v2/0?context=%7b%22Tid%22%3a%22853e8b83-4054-4e b9-8b26-ec6513dd213d%22%2c%22Oid%22%3a%22ba1f21a1-74d5-4d4a-8b8f-2f06d0c71a75%22 %2c%22IsBroadcastMeeting%22%3atrue%7d&btype=a&role=a The link to the webcast will be available on the company's website: Martin Prytz, CFO and Head of Investor Relations E-mail: IR@lumigruppen.no Mobile: +47 480 14 078 About Lumi: Lumi Gruppenis a leading Norwegian education provider founded in 1989. Today, Lumi Gruppenconsists of two main divisions: Sonans and Oslo Nye Høyskole. Sonans is the market leader in Norwaywithin private candidate exam preparation courses, and Oslo Nye Høyskole offers high quality bachelor's degrees within health, social sciences, psychology and business and administration, both on campus and online. This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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