Lumi Education Group (LUMI) DNB Carnegie Micro Cap Day Conference summary

Business performance and financials

• Group revenue reached NOK 549 million with 16% growth and a 20% adjusted margin last year.

• ONH delivered NOK 333 million in revenue at a 26% EBIT margin, while Sonans contributed NOK 198 million at an 18% margin.

• Group-adjusted EBITDA rose 54% to NOK 56 million, with free cash flow conversion at 80% in H1.

• Most growth is organic, with ONH growing 15% and Sonans 2%, driven by online programs and digital classrooms.

• EnkelEksamen, acquired in December, is growing rapidly with a 31% margin.

Market trends and structural drivers

• Demand for education in Norway exceeds supply, with 151,000 applicants for 66,000 public study places in 2023.

• Online learning is the fastest-growing segment, with ONH having over 80% of students online versus 12% market average.

• Political and financial support for private education remains stable, with no major regulatory changes.

• Flexible education programs now account for 28% of all students, doubling online student numbers since 2019.

• Growth in flexible and online education is driven by new program development.

Operational highlights and student outcomes

• ONH is the highest-rated institution in Studiebarometeret for four consecutive years, scoring 4.2 in 2023.

• Sonans students improve their grades by an average of one point, with 91% entering preferred higher education.

• 90% of next year's revenue is locked in by September due to upfront student commitments.

• ONH has not experienced a single year of decline, now serving over 4,500 students.

• Recurring revenue from bachelor and master programs accounts for 40% of ONH's revenue.