Lumi Education Group As · OSL:LUMI
Lumi Education Group As — Lumi Gruppen — ABGSC Investor Days 2025
45 slides from Lumi Education Group As's conference presentation, May 13, 2025
Slide 1: Lumi Gruppen – ABGSC Investor Days
LUMI GRUPPEN ABGSC INVESTOR DAYS 13 May 2025
Slide 2: Offering programmes within technology and
Offering programmes within technology and
Slide 3: Lumi Management Team
LUMI MANAGEMENT TEAM Lumi Gruppen management team brings extensive experience from online business models, finance and operations, ensuring the company’s continued success and growth. NINA MARTIN VESTERBY PRYTZ CEO & ACTING MD SONANS CHIEF FINANCIAL OFFICER LUMI GRUPPEN
Slide 4: The Investment Case
STRONG ATTRACTIVE SECULAR FINANCIAL TAILWINDS PROFILE THE INVESTMENT CASE WHY INVEST IN LUMI GRUPPEN? FOCUSED ON LEADING HIGH-GROWTH STUDENT SEGMENTS SATISFACTION LUMI GRUPPEN
Slide 5: Focused on High-Growth Segments
THE INVESTMENT CASE FOCUSED ON HIGH- GROWTH SEGMENTS LUMI GRUPPEN
Slide 6: Migration to Online and Flexible
FOCUSED ON HIGH-GROWTH SEGMENTS MIGRATION TO Both ONH and Sonans have a ONLINE AND significant share of students FLEXIBLE online. 11% CAGR in applicants to online and flexible programmes in the Norwegian higher education market (2018-2024). ONH is a market leader in the online student segment. Marke
Slide 7: Sonans innovates in hybrid learning with remote Live classroom
Sonans innovates in hybrid learning with remote “Live” classroom. AI capabilities in place to strengthen the student experience and flexibility. LUMI GRUPPEN
Slide 8: Life-Long Learning
FOCUSED ON HIGH-GROWTH SEGMENTS ONH has tapped into this market through its online offerings. LIFE-LONG LEARNING 18% annual growth rate (CAGR) in the number of students aged >25 years for ONH (last 5 years). Public universities achieved a 2% CAGR growth in number of active students >25 years (2018-2
Slide 9: Strong Secular Tailwinds
THE INVESTMENT CASE STRONG SECULAR TAILWINDS LUMI GRUPPEN
Slide 10: The Norwegian Education Market
STRONG SECULAR TAILWINDS THE NORWEGIAN MARKET OVERVIEW EDUCATION MARKET 175 150 150 153 141 142 134 137 135 136 125 131 127 119 100 75 Strong demand for flexible education 50 59 61 62 62 63 64 55 56 57 53 53 options, including online learning and 25 part-time programmes. 0 2014 2015 2016 2017 2018 2
Slide 11: Structural undersupply of public university places
Demand Supply #applicants #places Structural undersupply of public university places, pushing 56 000 students toward private colleges and alternative pathways like Sonans. 106 000 2,1x 50 000 2010/2011 Demand Supply #applicants #places Higher education demand in Norway has risen 38% in 15 years, 78
Slide 12: Drivers of Growth in Applicant Numbers
STRONG SECULAR TAILWINDS DRIVERS OF GROWTH IN APPLICANT NUMBERS Flexible education offerings: Demographic trends: higher A growing population. flexibility has attracted a broader share of young people range of students, particularly choosing higher education. older age segments. 12 LUMI GRUPPEN
Slide 13: Lumi Is Bridging the Gap
STRONG SECULAR TAILWINDS LUMI IS BRIDGING THE GAP Steadily increasing demand for higher education has not been matched by an increase in public study places, creating a demand gap with more applicants than available places. Private colleges help close the demand gap, especially in ONH’s key areas li
Slide 14: Strategic Positioning
STRONG SECULAR TAILWINDS SUBSTANTIAL FURTHER ADDRESSABLE MARKET FOR ONH ONLINE DOMINATES, ALIGNING ONH WITH A 1,2% HIGHER GROWTH SECTION STRATEGIC SELECTING UNDERSERVED OF MARKET POSITIONING NICHES WITH STRONG GROWTH POTENTIAL • Focuses on structurally higher growth sub-segments. 80% ONH focus area
Slide 15: Institutional Accreditation
STRONG SECULAR TAILWINDS Student growth driven by STUDENTS AT ONH programme development without (IN THOUSANDS) INSTITUTIONAL institutional accrediation 4,0 3,4 ACCREDITATION Accreditation of 2,9 3,0 2,5 bachelor in applied 2,2 psychology A key strategic enabler 1,9 1,6 1,2 0,9 0,8 0,8 0,8 0,8 2011 2
Slide 16: Programme development with institutional accreditation
STRONG SECULAR TAILWINDS 2026 > Programme Faster Programme Approvals Segment Expansion Increased Competitiveness Autonomy to accredit our own Enables more agile entry into Accelerated development development with programs shortens time-to- new and in-demand fields, strengthens ONH's position institu
Slide 17: Key Drivers to Post-Covid 19 Recovery
STRONG SECULAR TAILWINDS Job Market Grade inflation 500 4,46 473 4,42 KEY DRIVERS TO 450 4,4 427 423 4,32 POST-COVID 19 400 355 4,26 4,26 350 4,22 RECOVERY 300 272 290 4,11 4,19 251 4,08 250 238 • Low unemployment post- 200 Covid reduced Sonans -41% Grade scale 1 to 6 applicants significantly. 150 8
Slide 18: Stable Regulatory Backdrop
STRONG SECULAR TAILWINDS Policy focus on flexibility and lifelong learning: The government's Digitalisation Strategy and Skills Reform promote online, accessible education and importance of lifelong learning. STABLE REGULATORY Stable regulatory and funding environment: Lånekassen support and favoura
Slide 19: Strong public investment in education
Strong public investment in education: Norway prioritizes education, spending 6.6% of GDP—the highest in the OECD. In the last decade, there has been a growing role for quality private institutions. 2025 MINISTER OF HIGHER EDUCATION FORMALLY OPENS ONH’S NEW CAMPUS LUMI GRUPPEN
Slide 20: Leading Student Satisfaction
THE INVESTMENT CASE LEADING STUDENT SATISFACTION LUMI GRUPPEN
Slide 21: Market Leading Student Experience
LEADING STUDENT SATISFACTION MARKET LEADING 20% STUDENT 50% EXPERIENCE 50% 80% LEADING ONLINE OFFERING Online & Flexible Campus While combining the best from a traditional campus experience, our platform is leading the industry towards online solutions. 21
Slide 22: Continued Technology Innovation, Flexible Study Models
LEADING STUDENT SATISFACTION CONTINUED TECHNOLOGY INNOVATION Continued investment in hybrid learning technology, and exploration of AI solutions reflect Lumi Gruppen’s dedication to innovating the student experience. FLEXIBLE STUDY MODELS Introduced innovative and flexible study programmes, designed
Slide 23: ONH Has Held the Highest Rating for Four Consecutive Years
LEADING STUDENT SATISFACTION ONH HAS HELD THE HIGHEST RATING FOR FOUR CONSECUTIVE YEARS National public survey – Studiebarometeret (scale 1-5) Internal evaluation (scale 1-7) Overall student satisfaction Student satisfaction with Digital resources and lecturing (physical & digital) digital lecturing
Slide 24: Strong Outcomes – High Satisfaction
LEADING STUDENT SATISFACTION High satisfaction with teachers and course Scale 1 to 6 Excellent student outcomes Teacher Course STRONG satisfaction satisfaction OUTCOMES – Clear evidence of grade Sonans students qualifying for HIGH higher education as % of improvements* respondents 4,6 4,5 4,2 4,1 SA
Slide 25: Attractive Financial Profile
THE INVESTMENT CASE ATTRACTIVE FINANCIAL PROFILE LUMI GRUPPEN
Slide 26: Strong Resilience and Adaptability
ATTRACTIVE FINANCIAL PROFILE STRONG RESILIENCE AND ADAPTABILITY Lumi revenues & Adj. EBIT% 800 30,4 % 26,9 % 30% 25,1 % 700 22,3 % 22,0 % Lumi has delivered strong revenue growth, 20% profitability, and cash flow over many years. 13,5 % 600 11,7 % 10% 532 500 518 515 0% 464 449 430 400 423 -10% Covi
Slide 27: Strong Track Record of Financial Performance
ATTRACTIVE FINANCIAL PROFILE STRONG TRACK RECORD OF Financial performance FINANCIAL PERFORMANCE Illustrative future Grown to +4k students from an online-focused start-up. 265 224 194 21% 168 Strong recurring revenues driven 141 by multi-year BA and MA 114 103 students, now ~40% of total. 92 77 60 24
Slide 28: Strong Track Record of Financial Performance
ATTRACTIVE FINANCIAL PROFILE STRONG TRACK RECORD OF Financial performance FINANCIAL Covid Illustrative affected future PERFORMANCE 346 376 363 320 320 Potential market After two years of decline, end 283 recovery market dynamics have now 12% turned and are showing growth. 241 212 224 194 199 200 182
Slide 29: Strong Revenue Visibility
ATTRACTIVE FINANCIAL PROFILE STRONG REVENUE Yearly revenue 100% VISIBILITY Spring intake 10% DES JAN 90% Most of the revenue for the year NOV FEB ahead is “locked in” every September. MAR Autumn OKT intake ACADEMIC Students commit to payment and attendance before each semester YEAR SEP APR within th
Slide 30: Locked-In Revenue, Profitability and Cash Flow
ATTRACTIVE FINANCIAL PROFILE LOCKED-IN REVENUE, PROFITABILITY AND CASH FLOW Exceptional revenue visibility Consistently strong free cash Lumi enjoys unusually strong visibility when vs market flow conversion* setting guidance for the academic year. Variance between start-of-year Annual free cash flo
Slide 31: Outpacing the Market
ATTRACTIVE FINANCIAL PROFILE Consistently above Proven ability to continually Strong and dependable Adj. market growth re-invest capital at high EBIT margins (2016-2024) OUTPACING (CAGR 2008-2024) returns (2021-2024) THE MARKET +4 pp 115 m • Aligns with current and 33% evolving student preferences.
Slide 32: From Challenge to Opportunity
ATTRACTIVE FINANCIAL PROFILE Revenue from online Operating expenses Bad debt in % of revenue and flexible (%) Sustainable cost measures FROM successfully implemented Strong credit screening, CHALLENGE TO (NOKm) reducing bad debt expense Transition to online and flexible courses OPPORTUNITY and impro
Slide 33: Financial Key Takeaways
Lumi Gruppen has emerged We offer 1 from a challenging period with a stronger, more resilient 2 o strong revenue visibility, o strong profitability, business model. o and robust cash generation FINANCIAL KEY TAKEAWAYS 3 Proven ability to adapt and grow. 4 ONH is outperforming the market. Resilient m
Slide 34: Business Outlook and Financial Ambitions
BUSINESS OUTLOOK AND FINANCIAL AMBITIONS LUMI GRUPPEN
Slide 35: Continued Double Digit Growth for ONH
OUTLOOK CONTINUED DOUBLE DIGIT GROWTH FOR ONH Institutional Attractive program Flexible learning accreditation development models ONH is pursuing university Expanding study programs in high- Leading the way in college accreditation. demand fields aligned with labour innovative, digital, and market n
Slide 36: Grow Vocational Initiative
OUTLOOK GROW VOCATIONAL INITIATIVE Vocational higher Strong political education is thriving Synergies with ONH support Student numbers doubling in six year.
Slide 37: Return Sonans to Normalised Profitability
OUTLOOK RETURN SONANS TO NORMALISED PROFITABILITY Market leader Resilient and Positive outlook efficient Indicators point to demand Sonans maintains a strong brand Focus on steady growth, cost recovery and market normalisation, and top student outcomes as discipline, and a leaner business model with
Slide 38: Continuous Investments in Student Experience
OUTLOOK CONTINOUS INVESTMENTS IN STUDENT EXPERIENCE Student experience New capabilities withing AI Lumi will continue to improve the Utilising new capabilities within AI student experience, focusing on will be a priority, both for improving our market leading online platform. educational quality and
Slide 39: Consider Acquisitions and New Growth Avenues
OUTLOOK CONSIDER ACQUISITIONS AND NEW GROWTH AVENUES Core and adjacent Bolt-on and technology markets New geographies acquisitions Bolt-on and technology acquisitions Possibilities in core and adjacent Exploration within new (EdTech), i.e. to enhance AI markets, such as non ECTS geographies, utilisi
Slide 40: Financial Ambitions Towards the AY 2026-27
INSERT SLIDE TITLE HERE OUTLOOK FINANCIAL AMBITIONS TOWARDS THE AY 2026-27 Excl. any market recovery 4 years GROWTH/REVENUE ~15% PA ~5% PA NOK ~50 MILLION Excl. any market recovery ADJ. EBIT% 25-30% ~15% 25-30% • 10-20% margins short- • Newly established online • Double-digit growth. term, > 20% lon
Slide 41: Questions?
QUESTIONS? LUMI GRUPPEN
Slide 42: Sources
SOURCES HTTPS://WWW.SAMORDNAOPPTAK.NO/INFO/ HTTPS://DBH.HKDIR.NO/ HTTPS://WWW.STUDIEBAROMETERET.NO/NO/ SONANS AUMNI SUVERY (INTERNAL) HTTPS://LUMIINVESTOR.COM/REPORTS-PRESENTATIONS/ LUMI GRUPPEN
Slide 43: Analyst Coverage (Commissioned)
ANALYST COVERAGE (COMMISSIONED) LUMI GRUPPEN
Slide 44: Carnegie and ABG Sundal Collier
ABG SUNDAL CARNEGIE COLLIER Carnegie Investment Bank AB ABG Sundal Collier Commissioned research Carnegie Equity Research Hjalmar Jernström Petter Nystrøm / Henrik Bartnes T +46 70 86 22814 T +47 22 01 61 35 M +47 48 01 61 35 hjalmar.jernstrom@carnegie.se petter.nystrom@abgsc.no www.carnegie.se www.
Slide 45: Disclaimer
Disclaimer This presentation 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 ar