Lumi Education Group As · OSL:LUMI
Lumi Education Group As — Lumi Gruppen — H2 2024 Earnings Presentation
36 slides from Lumi Education Group As's earnings presentation, February 2025
Slide 1: Lumi Gruppen H2 24 Presentation
Lumi Gruppen H2 24 Presentation
Slide 2: Agenda
Agenda • Introduction and Highlights • Investing in Lumi Gruppen • Financials H2 24 • Key Priorities and Financial Ambitions
Slide 3: This is Lumi Gruppen
This is Lumi Gruppen
Slide 4: Lumi Gruppen is a leading education provider in Scandinavia
Lumi Gruppen is a leading education Lumi Gruppen facilitates lifelong learning through flexible education and contributes to provider in Scandinavia ensuring society has a workforce for the future. Our vision: The best student experience Lumi Gruppen strives to create a student experience of the hig
Slide 5: Leading higher education provider, operating across three main brands
Leading higher education provider, operating across three main brands NOKm 451 ~5% p.a. ~13.3% Revenue (FY2024) Revenue CAGR (FY 2014-24) Adjusted EBIT margin (FY 2024) ~100% ~8,500 0% Free cash flow conversion* (FY 2024) Students, ~60% online (FY 2024) Public funding CAGR EBIT** CAGR EBIT Strong Ra
Slide 6: Introduction and Highlights
Introduction and Highlights
Slide 7: Introduction
Lumi Gruppen – A leading higher education provider Introduction Nina Vesterby Appointed CEO 1 August 2024 Previous Role and Experience: • CEO, Story House Egmont AS • CEO in the telecom industry Education: • Master in Business Administration & Management, NHH • Bachelor in Business, BI Norwegian Bus
Slide 8: Lumi turns the corner with positive momentum in H2 24
Lumi Gruppen – A leading higher education provider Lumi turns the corner with positive momentum in H2 24 • Revenue: NOK 239 million (210), reflecting solid growth of 14 per cent. • EBIT: Ended at NOK 29 million (13) for the second half, with a margin of 12 per cent. • Adjusted EBIT: Reached NOK 32 m
Slide 9: Key Achievements of Lumi Gruppen
Lumi Gruppen – A leading higher education provider There are many variations of passages of Lorem Ipsum Key Achievements of Lumi Gruppen available, but the majority Driving growth and financial stability Innovation and programme development • ONH is continuing its steady growth trajectory, achieving
Slide 10: Investing in Lumi Gruppen
Investing in Lumi Gruppen
Slide 11: The investment case – why invest in Lumi Gruppen?
Lumi Gruppen – A leading higher education provider The investment case – why invest in Lumi Gruppen? Strong secular Leading student Focused on high growth Attractive tailwinds satisfaction market segments financial profile • 50% undersupply of university • ONH is the highest rated • Leading innovato
Slide 12: ONH – Strategic positioning
ONH – leading multidisciplinary university college Strategic positioning 1 2 3 Selecting underserved Online dominates, Substantial further ▪ Focuses on structurally niches with strong aligning ONH with a addressable market higher growth sub- growth potential higher growth section sectors. of market
Slide 13: ONH – Financial achievements
ONH – leading multidisciplinary university college Financial achievements 1 2 3 Consistent above Strong and dependable Proven ability to ▪ Aligns with current and market growth Adj. EBIT margins* continually re-invest evolving student (CAGR 2008-2024) capital at high returns preferences. ▪ Demonstra
Slide 14: Key demand drivers affected by one-off Covid-19 effects
Sonans – Norway’s leading provider of private candidate exam preparation Key demand drivers for the private candidate exam preparation market affected by “one-off” Covid-19 effects … 1 2 Norwegian total job vacancies have surged to Changes in teaching conditions and exam standards during unprecedent
Slide 15: One-off factors led to a significant market decline, now steadied
Sonans – Norway’s leading provider of private candidate exam preparation Such “one-off” factors led to a significant market decline after Covid-19, but this has now steadied 3 The number of privatist exams taken is significantly reduced. A spike in sales during the first year of Covid-19 was followe
Slide 16: Sonans – Well-positioned for the future
Sonans – Norway’s leading provider of private candidate exam preparation There are many variations of passages of Lorem Ipsum Well-positioned for the future available, but the majority Strongly positioned • Leading position with the highest number of students. • Top brand recognition. • Excellent st
Slide 17: Lumi Gruppen upsides
Lumi Gruppen – A leading higher education provider Lumi Gruppen upsides Significant market Oslo Nye Fagskole M&A upswing for Sonans takes off Privatist market recovers closer ONF (higher vocational education Management is actively exploring to pre-pandemic levels college) grows at a fast pace. poten
Slide 18: Financials H2 24
Financials H2 24
Slide 19: Solid 14 per cent revenue growth in H2 24
Lumi Gruppen – A leading higher education provider Solid 14 per cent revenue growth in H2 24 • ONH maintained its positive trajectory in the second half of 2024, generating NOK 145 million in revenue, representing an 18.0 per cent growth. • This growth was driven by the continued expansion of online
Slide 20: Returned to growth path in H2 24
Lumi Gruppen – A leading higher education provider Returned to growth path in H2 24 Second half of 2024 Financial year 2024 +14% +7% 239 5 1 -16 451 423 44 1 210 22 H2 23 ONH Sonans Other H2 24 2023 ONH Sonans Other 2024 Revenue Revenue
Slide 21: Strong EBIT growth driven by revenue increases across segments
Lumi Gruppen – A leading higher education provider Strong EBIT growth driven by revenue increases across segments and stable OpEx development • EBIT for the Group amounted to NOK 28.7 million in the second half, compared to NOK 12.8 million in the same period last year. EBIT margin was 12.0% (+5.9 p
Slide 22: Reported EBIT increased by 124 per cent in H2 24
Lumi Gruppen – A leading higher education provider Reported EBIT increased by 124 per cent in H2 24 Second half of 2024 Financial year 2024 124% +5.9 pp 51% +3.5 pp 28.7 12.0% 53.0 11.8% 8.3% 35.1 6.1% 12.8 H2 23 H2 24 H2 23 H2 24 2023* 2024 2023* 2024 EBIT Margin EBIT (NOKm) EBIT Margin EBIT (NOKm)
Slide 23: Adjusted EBIT increased by 59 per cent in H2 24
Lumi Gruppen – A leading higher education provider Adjusted EBIT increased by 59 per cent in H2 24 Second half of 2024 Financial year 2024 59% +3.9 pp 22% +1.6 pp 32.4 13.6% 60.2 13.3% 11.7% 49.5 9.7% 20.4 H2 23 H2 24 H2 23 H2 24 2023* 2024 2023* 2024 Adj. EBIT Adj. EBIT Margin Adj. EBIT Adj. EBIT M
Slide 24: ONH: EBIT increased by 41%, driven by revenue growth
ONH – A leading multidisciplinary university college ONH: EBIT increased by 41%, driven by revenue growth and controlled expense development Operating profit/EBIT • EBIT ended at NOK 32.1 million, representing a margin of 22.2%. Adjusted EBIT reached NOK 33.1 million, with a margin of 22.9%. Excludi
Slide 25: ONH: Revenue, EBIT and EBIT margin for H2 24
ONH – A leading multidisciplinary university college ONH: Revenue, EBIT and EBIT margin for H2 24 +3.7 pp +41% 22.2% 18% -8.4 145 18.5% -1.7 123 22.1 -2.6 32.1 22.7 2H 2023 2H 2024 EBIT H2 23 Revenue OpEx Mgmt Fee D&A EBIT H2 24 H2 23 H2 24 Revenue Revenue
Slide 26: Sonans: EBIT turned from negative to positive
Sonans – Norway’s leading provider of private candidate exam preparation Sonans: EBIT turned from negative to positive, driven by revenue growth and net expense reduction Operating profit/EBIT • EBIT ended at NOK 4.5 million, representing a margin of 4.8%. Adjusted EBIT was NOK 5.7 million, with a m
Slide 27: Sonans: Revenue, EBIT and EBIT margin for H2 24
Sonans – Norway’s leading provider of private candidate exam preparation Sonans: Revenue, EBIT and EBIT margin for H2 24 5.5% -293% +7.4 pp 94 4.5 89 4.8% 3.7 4.9 -5.6 3.9 -2.3 2H 23 2H 24 EBIT H2 23 Revenue OpEx Mgmt Fee D&A EBIT H2 24 -2.6% Revenue Revenue H2 23 H2 24
Slide 28: Strong cash flow driven by EBIT growth and minimal NWC impact
Lumi Gruppen – A leading higher education provider Strong cash flow driven by EBIT growth and minimal NWC impact from revenue expansion +158% 18.1 85.4 16.3 3.4 182 14.6 166 72% 2.6 53.2 30.9 33.1 -4.5 H2 23 H2 24 2023 2024 H2 23 H2 24 2023 2024 Leverage Net Debt* Op. Cash Flow Changes in NWC H2 23
Slide 29: Outlook - market drivers and outlook appear positive
Lumi Gruppen – A leading higher education provider Outlook - the market drivers and outlook appear positive for the group and its segments • Development at Sonans remains somewhat uncertain; however, the market has stabilised, providing opportunities to improve margins even at current volumes. • The
Slide 30: Outlook – revenue estimates for AY 2024/2025
Lumi Gruppen – A leading higher education provider Outlook – revenue estimates for AY 2024/2025 Oslo Nye Høyskole ~ 280-285M Lumi Gruppen ~ 464-471M 18% 145 135-140 123 124 103 101 14% 248 239 225-232 AY 22/23 AY 23/24 AY 24/25 204M 246M 280-285M 212 210 213 H2 22 H1 23 H2 23 H1 24 H2 24 H1 25E Sona
Slide 31: Key Priorities and Financial Ambitions
Key Priorities and Financial Ambitions
Slide 32: Management – key near-term priorities
Management – key near-term priorities Continued double- Return Sonans to Maintain online-focus Consider further digit growth for ONH normalised profitability and leadership acquisitions • Applications submitted to continue • Continued cost optimisation in a • ONH is an online education • Possibiliti
Slide 33: Financial Ambitions towards the AY 2026-27
Financial Ambitions towards the AY 2026-27 ~5% pa >30 NOKm Growth/Revenue >10% pa Further upside, depending on in 4 years the recovery. Adj. EBIT % >25% ~15% >25% • Double-digit growth. • 10-20% margins short-term, • Newly established vocational Key priorities • Develop new programmes. >20% longer-t
Slide 34: Financial Calendar and Updates
Financial Calendar and Updates
Slide 35: Financial calendar
Financial calendar Financial calendar and market updates Interim H2 Report: 10 February 2025 H1 Report: 14 August 2025 Annual Annual accounts: 11 April 2025 Other Lumi market update 2025 (TBA) Trading update autumn intake 2025/2026 (TBA)
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