Knowit — Interim / Quarterly Report 2023

Oct 25, 2023

Interim report Focus on change in a challenging market

			NET SALES INCREASED BY 8.5 PERCENT TO SEK 5,273.4 (4,860.9) MILLION
	JANUARY – SEPTEMBER 2023		THE OPERATING PROFIT (EBITA) WAS SEK 348.6 (418.5) MILLION THE ADJUSTED OPERATING PROFIT (EBITA) WAS SEK 349.8 (429.1) MILLION 1)
			THE OPERATING MARGIN (EBITA) WAS 6.6 (8.6) PERCENT THE ADJUSTED OPERATING MARGIN (EBITA) WAS 6.6 (8.8) PERCENT 1) RESULTS AFTER TAX WERE SEK 150.3 (273.2) MILLION
		EARNINGS PER SHARE WERE SEK 5.43 (9.74) 2)	CASH FLOW FROM OPERATING ACTIVITIES WAS SEK 128.5 (155.9) MILLION
	JULY – SEPTEMBER 2023		NET SALES INCREASED BY 1.5 PERCENT TO SEK 1,544.1 (1,520.9) MILLION THE OPERATING PROFIT (EBITA) WAS SEK 74.8 (90.0) MILLION THE ADJUSTED OPERATING PROFIT (EBITA) WAS SEK 74.9 (94.5) MILLION 1)
			THE ADJUSTED OPERATING MARGIN (EBITA) WAS 4.9 (6.2) PERCENT 1)
			THE OPERATING MARGIN (EBITA) WAS 4.8 (5.9) PERCENT RESULTS AFTER TAX INCREASED TO SEK 26.3 (21.2) MILLION
						the Group's underlying operative activities.
			EARNINGS PER SHARE INCREASED TO SEK 1.08 (0.69) 2) CASH FLOW FROM OPERATING ACTIVITIES WAS SEK -99.9 (20.0) MILLION
						25, 2023.
			1) EBITA is adjusted for items that affect comparability between periods, to improve understanding of
		For more information, see defi nitions on page 28.
	2) Before and after dilution.
						The information contained herein is such as shall be made public by Knowit AB (publ) in accordance with the EU Market Abuse Regulation and the Securities Market Act. The information was made public through the agency of CEO and President Per Wallentin, at 07.30 CEST on October

COMMENTS FROM THE CEO

Actions focused on increased profitability

The market in 2023 has been characterized by both weaker demand and longer sales cycles. Powerful measures have been taken to meet the new market conditions and increase internal efficiency. However, market uncertainty remains high and we are facing challenges in retaining a high and even utilization. A sustained focus on measures has top priority, with the goal of reaching profitability levels in line with our long-term goals.

THE NORDIC CONSULTANCY sector, like most other sectors, is affected by the weakened macroeconomy. External factors like inflation, a weakened currency, and slowdown in demand is putting greater pressure on our clients. During the third quarter of the year we have see that the effects of the recession at the start of the year is causing continued challenges in getting consultants into projects, affecting both growth and profitability. The EBITA margin was 4.8 percent, a stabilization compared with the development we saw during the second quarter, but a deterioration compared with one year ago, when the market remained strong.

A FOCUS ON PROFITABILITY AND MARGINS

In our four business areas, we have made powerful efforts during the quarter to meet the changing market circumstances. The business area Connectivity is developing fairly well, largely thanks to hard work in adapting and transforming the operations to the current market. In other business areas, we have a way to go before we achieve satisfactory profitability levels. An important priority is to ensure that our operations are adapted for profitability rather than growth. At the same time, it is important that we are agile and use the growth opportunities given. This is achieved through thorough overview of the operations and immediate efforts to decrease general costs, for instance for travel and conferences, and through reducing the number of employees in areas where demand is weaker, and in purely administrative roles. Thus far, we have reduced the workforce by around 165 employees as a result of the weaker demand. The savings measures we have taken have already had an effect in the third quarter, but we expect further effects on operative costs during the end of the year and the start of 2024.

Retaining a strong focus on new sales and close dialogues with clients regarding existing projects has a high priority, both to increase visibility going forward and to maintain prices in an increasingly competitive situation. Furthermore, we are working hard to reallocate our resources and focus efforts on sectors and segments where demand remains strong.

While all Nordic markets are affected by weaker market conditions, we are seeing the largest challenges on the Swedish market, particularly in sectors like retail, property,

and parts of the public sector. At the same time, we are seeing continued high demand for defense solutions, cybersecurity, law, and banking and finance.

As a result of the work performed in Finland during the end of last year and the start of 2023, to improve profitability, our Finnish operations are succeeding fairly well in navigating on a weaker market.

DIGITALIZATION CONTINUES REGARDLESS OF THE ECONOMIC CLIMATE

Working for a sustainable and inclusive society with a focus on digitalization is a priority for us, regardless of the market situation. The need to streamline processes is becoming – if possible – even more important for many companies and organizations on this weaker market. In the wake of an ongoing recession, our primary task is helping our clients make the right prioritizations and keep a focus on the digital initiatives that help them develop their business models and continue with their digital transformations. In the short term, both we and our clients must secure internal efficiency and – by extension – profitability. In the longer term, the transition to a sustainable society through innovative solutions for continued digitalization is a key to success. Knowit has a strong position as a Nordic digitalization partner, where we – in the shorter term – have high demands on our ability to continue working with all the initiatives now being implemented to increase our longterm profitability.

PER WALLENTIN CEO and President

EVENTS DURING THE QUARTER

JULY – SEPTEMBER 2023

Knowit Connectivity has been given increased confidence from the SWEDISH DEFENCE MATERIEL ADMINISTRATION (FMV) through a new contract from January 2024. The contract encompasses consultants for application management and further development of software supporting forward troops within logistics and the functions of technical services, supply of basic necessities, and logistics management. The contract initially extends from January 1, 2024, to December 31, 2026, and includes an options for extension of another four years.

Knowit has extended its collaboration with NORWEGIAN POSTEN BRING and will assist Posten in several areas, from technology and system development to user experiences, over the next three years, with an option for another two years.

Knowit has been given renewed confidence from the Nordic region's largest transportation group, NORWEGIAN VY. A new framework agreement has been signed in the area data and analytics for use of data as business support. The new agreement supplements the existing partnership in IT development and tech.

On August 21, LENNART WALDENSTRÖM assumed the role as Head of KNOWIT CONNECTIVITY. The business area Connectivity delivers high-tech software development and embedded systems to clients in telecommunications and the vehicle industry.

Internal efficiency and client activities THE PERIOD IN BRIEF

JULY – SEPTEMBER 2023

THE THIRD QUARTER of the year has been characterized by weaker demand and a continued strong need to control costs and increase internal efficiency to secure a strong long-term margin. Nordic companies and authorities are still requesting expertise in digitalization and system development, but the weaker market now at hand is extending decision-making processes and delaying some projects to the future. This development has a negative impact on utilization and thereby on profitability.

Z

During the quarter, a proactive and sound dialogue with existing clients has had a high priority, while internal efforts have focused on adapting the organization and shifting resources to areas where demand remains high.

Finland 11% (9) Poland 4% (3) Other 0% (0)

JULY – SEPTEMBER 2023

Financial development

The net sales for the period increased to SEK 1,544.1 (1,520.9). Profit before amortization of intangible assets (EBITA) was SEK 74.8 (90.0) million. The adjusted EBITA profit was SEK 74.9 (94.5) million, adjusted for acquisition and integration costs of SEK 0.1 (4.5) million.

Compared with the corresponding period last year, exchange rate developments had a positive effect on EBITA totaling SEK 41.4 (50.2) million. Cash flow from operating activities was SEK -99.9 (20.0) million, where operating capital was SEK -223.8 (-54.0) million, affected mainly by increased accounts receivable, but also by decreased short-term liabilities.

As a result of the decreased demand in several sectors and segments, the quarter has been characterized by multiple measures to reduce the cost base. The savings measures initiated during the second quarter have already shown an effect in the third quarter by around SEK 20 million. Restructuring costs for phase-out of employees has, during the quarter, totaled around SEK 14 million.

The below table shows financial history that includes the acquisitions of Ascend and Ionic for comparable periods, to facilitate for the reader to follow the development. See more information on page 26 in this report.

SEK, MILLIONS	JUL-SEP 2023	JUL-SEP 2022
Sales	1,544.1	1,520.9
Sales, acquisitions 1)		28.0
Sales, including acquisitions	1,544.1	1,548.9
Sales, change, %	-0.3
of which is exchange rate effect, %	2.7

1) Adjustments relate to addition of net sales in Ascend and Ionic for the period July–September 2022

The below table shows performance measures, EBITA and the EBITA margin are adjusted for items that impair comparability between different periods, to enable increased understanding for the Group's underlying operations.

SEK, MILLIONS	JUL-SEP 2023	JUL-SEP 2022
EBITA	74.8	90.0
Adjusted EBITA profit 1)	74.9	94.5
EBITA margin, %	4.8	5.9
Adjusted EBITA margin, % 2)	4.9	6.2
Cash flow from operating activities	-99.9	20.0
Intangible assets	4,528.6	4,379.2
Number of employees at the end of the period	4,383	4,315

1) EBITA is adjusted for items that impair comparability between different periods, to improve the understanding of the Group's underlying operations. Comparison-impairing items include costs connected to acquisitions and costs for restructuring and integration programs related to acquisitions.

²⁾ Adjusted EBITA profit in relation to the net sales of the period.

Digitalization continues despite the market situation

Knowit contributes to the transformation towards a more digital and sustainable society by developing innovative solutions along with its clients and partners. Together, Knowit's four business areas create a complete offer in digitalization, covering the entire organization of each client. During 2023, the market circumstances have changed and some sectors have been characterized by a greatly decreased demand and longer sales cycles. At the same time, there is a continued need for support in the digital transformation, where Knowit's client offer remains relevant.

THE DIGITAL TRANSFORMATION means that companies and organizations are adapting their processes and business models to become entirely or partially digital and Knowit is there to support each part of this development. In a weaker market, even greater demands are made of companies regarding efficiency and resource saving, where companies' abilities to use technology are crucial. Digital solutions that Knowit has developed along with clients and partners are found throughout all parts of society, from schools, healthcare services, and authorities, to e-commerce, transportation, security systems in vehicles, and new energy systems.

Knowit's competence in new technology and digital solutions, such as artificial intelligence, automation, and robotization, creates good possibilities to have a positive impact on society and the climate challenges. Knowit has its largest operations in the Nordic region, with a smaller organization in Germany and operations in Poland that support the Nordic operations with expertise in program-

SALES PER BUSINESS AREA JULY – SEPTEMBER 2023

Solutions	54% (56)
Experience	20% (21)
Connectivity	15% (16)
Insight	11%	(8)

SALES PER CLIENT INDUSTRY JULY – SEPTEMBER 2023

Public sector	39% (38)
Retail and service companies	15% (17)
Industry	15% (15)
Banking, finance and insurance	11% (10)
Telecommunications	8% (9)
Energy	4% (4)
Media, education and gaming	4% (4)
Other	4% (3)

ming and system development. With its agile work method and client-tailored solutions, Knowit has a strong position on the Nordic digitalization market.

A STRONG CLIENT OFFERING

Knowit's four business areas build on the clients' needs for support in various parts of their organizations. The business area Solutions usually collaborates with companies' operative and IT departments. Experience's usual client group encompasses sales and marketing departments, and Connectivity's target group is mainly research and development departments. Insight mainly has corporate management and management teams as its clients.

Knowit's clients often have a need for services from several business areas. This means that projects can be performed with the support of multiple competencies from more than one business area. These are collaborations that develop both Knowit's and the clients' businesses.

GOOD SPREAD ACROSS DIFFERENT CLIENT INDUSTRIES

Knowit meets clients in many different industries, where companies and organizations have the need for competent support to develop their operations and drive the change towards a digitalized society. The largest proportion of net sales is in the public sector, providing 39 percent of Knowit's total net sales. Other significant client sectors are retail and service companies, industry, and banking, finance, and insurance, which are behind 15, 15, and 11 percent of net sales, respectively.

A FOCUS ON SUSTAINABILITY

Actively contributing to the development of a sustainable and carbon-neutral society is a top priority at Knowit. Knowit has established sustainability goals that serve to ensure that the Company, along with its clients and partners, contributes to a positive environmental and climate impact, and increased inclusivity. In a digitalized society, new possibilities are created for simplified and sustainable everyday activities for both citizens and companies. The solution to many of the main challenges in society, such as climate change, is dependent on mankind's ability to use new and existing technology in a sustainable way.

An example of how Knowit contributes to a sounder and more sustainable society through digitalization is the app Hälsometern, which Knowit has developed together with Region Stockholm. By gathering data through the app, the region can continually monitor the health of citizens by mapping diseases and risk factors at an early stage. Thus, healthcare and health-promoting efforts can be adapted to citizens' actual needs, while researchers get data for new findings, and app users get a tool to monitor their own health.

A STRONG EMPLOYER BRAND REGARDLESS OF MARKET CONDITIONS

A strong employer brand is important and therefore a top priority for Knowit regardless of market conditions. During the third quarter, work to adapt the capacity to the current market situation has focused on redistributing and increasing competence in areas still characterized by high demand.

Knowit's employees are specialists who helps companies and authorities develop technology and solutions in the digital transformation. As an employer, being attractive and offering great opportunities for development and interesting assignments at the cutting edge of technology, are keys to continued success. During the third quarter, Knowit was named one of the best employees in Nyckelinstitute's mapping of equitable work conditions within Sweden. This is important as inclusion and diversity are high priorities within Knowit.

PRODUCT DEVELOPMENT CONTRIBUTES TO INNOVATION

Knowit's business is based on a strong consultancy operation with a focus on supporting companies and organizations on their digitalization journeys. Further, there are a number of products and platforms, often springing from development projects, that have become important supplements to other services and offers within Knowit, both as a value creator in client relations and as a contribution to an innovative environment for Knowit's employees.

SignPort is Knowit's in-house developed service for digital signatures, which is used for example is the municipality of Uppsala's multi-year efforts in digitalizing its operations. The municipality is thorough in measuring its progress in the digitalization process and the implementation of SignPort has already resulted in a significant difference, with decreased processing times and more effective errand management, as well as decreased lead times and costs for printing and sending physical letters.

FINANCIAL OUTCOME

The Group's operations are organized so that the corporate management team primarily follows four business areas: Solutions, Experience, Connectivity, and Insight.

The net sales for Solutions were SEK 884.2 (894.8) million, for Experience were SEK 331.3 (338.7) million, for Connectivity increased to SEK 252.2 (247.5) million, and for Insight to SEK 170.4 (136.0) million.

Profit before amortization of intangible assets (EBITA) for Solutions was SEK 62.3 (72.2) million, for Experience was SEK 7.4 (21.5) million, for Connectivity was SEK 26.2 (29.0) million, and for Insight was SEK -10.8 (-8.3) million.

The EBITA margin for Solutions was 7.0 (8.1) percent, for Experience was 2.2 (6.3) percent, for Connectivity was 10.4 (11.7) percent, and for Insight was -6.3 (-6.1) percent.

Solutions

	JUL-SEP 2023	JUL-SEP 2022	JUL-SEP 2022 incl. acquisition 1)
Sales, SEK, million	884.2	894.8	894.8
EBITA, SEK, million	62.3	72.2	72.2
EBITA margin, %	7.0	8.1	8.1
Number of employees at the end of the period	1,885	1,921	1,921

1) No acquisitions have had an impact between July and September 2022.

With a strong presence in the Nordic region and around 1,900 employees, the business area Solutions is wellpositioned to deliver high-quality digital solutions for companies and organizations and thereby support them on their digitalization journeys. By working close to its clients and using the latest technologies and methods, Solutions is an important partner to companies that want to futureproof their digital platforms and ensure a more data-driven operation. Solutions contributes with cutting-edge competence in all parts of the systems development process: from idea, architecture and project governance, to programming, implementation, testing, and security.

Solutions has the largest share of its clients in the public sector. Examples of clients include the Norwegian transport group VY (formerly NSB), several larger companies in retail and e-commerce, and leading companies in the telecommunications sector, such as Telia and Telenor. Examples of interesting organizations to which Solutions has delivered communication solutions include the aid organization Sida and SOS Alarm.

COMMENTS FROM THE EVP OF SOLUTIONS

The challenges that the business area has faced earlier during the year have continued into the third quarter, but without increasing further. We are impacted by weaker demand, in particular in Sweden, whereas developments in Finland and Denmark have been more positive thanks to measures implemented earlier during the year.

During the quarter, we have consolidated operations in Stockholm to increase efficiency in sales efforts and create a clearer position on the market.

"Our work with reallocating resources and decreasing costs has lead to some improvements and a more robust organization. Still, our utilization is not yet at a satisfactory level, so the work with streamlining and increasing sales activities on the market continues," says Åsa Holmberg.

Experience

	JUL-SEP 2023	JUL-SEP 2022	JUL-SEP 2022 incl. acquisition 1)
Sales, SEK, million	331.3	338.7	338.7
EBITA, SEK, million	7.4	21.4	21.4
EBITA margin, %	2.2	6.3	6.3
Number of employees at the end of the period	979	1,002	1,002

1) No acquisitions have had an impact between July and September 2022

The business area Experience focuses on creating and delivering innovative digital experiences for Nordic companies at the interface between technology and communication. Knowit has unique expertise when it comes to integrating technology, design, and business strategies to create a coherent and simple user experience. By using agile methods and an iterative process, Knowit can ensure that clients' needs and expectations are met and exceeded.

The business area offers a range of different services, including user experience, interaction design, user surveys, information architecture, digital strategy, and development of web and mobile applications. Experience also has a strong offer in e-commerce, an area that along with datadriven marketing has grown quickly in recent years. By working close to its clients, Knowit can tailor solutions to their specific needs and goals. Examples of clients that Experience has a long-term collaboration with include Danish Arla, Nordic OKQ8, Inera 1177.se in Sweden and the Norwegian insurance company Storebrand.

COMMENTS FROM THE EVP OF EXPERIENCE

On a more competitive market, our Swedish operations are impacted more than others. Our clients are still requesting our competence, but purchasing processes are delayed and some projects are put on hold, in both the public and the private sector.

"Experience has had a stable development in both Denmark and Norway compared with in the previous year – a show of strength, given how the market has developed in since then. We are challenged by longer delays and increased difficulties in keeping consultants on the Swedish market in assignments. Therefore, efforts during the quarter have been characterized by the meaure performed to improve profitability," says Fredrik Ekerhovd.

Connectivity

	JUL-SEP 2023	JUL-SEP 2022	JUL-SEP 2022 incl. acquisition 1)
Sales, SEK, million	252.2	247.5	247.5
EBITA, SEK, million	26.2	29.0	29.0
EBITA margin, %	10.4	11.7	11.7
Number of employees at the end of the period	763	757	757

1) No acquisitions have had an impact between July and September 2022

Connectivity combines technical expertise and business competence for innovative, secure, and sustainable solutions in IT and communication technology. The business area's expertise extends from wireless technology and the internet of things (IoT) to network architecture and security. The business area supports clients in everything from developing prototypes and proof-of-concepts to implementing large-scale solutions for smart homes, industrial automation, or smart cities.

Connectivity has over 750 consultants in Sweden and Poland and a smaller operation in Germany. Connectivity is specialized in development of 5G technology, at the absolute cutting edge of digitalization The platform enables usage of artificial intelligence (AI), the IoT, and extended reality (XR). Thus, it has potential to decrease costs, energy usage, emissions and waste. Connectivity is a leading supplier to clients in the telecommunications, vehicle and manufacturing industries and has been delivering services to the Swedish Armed Forces for many years. Connectivity collaborates with the companies' research and development departments, with clients like ABV, Assa, Ericsson, Scania, and Valmet.

COMMENTS FROM THE EVP OF CONNECTIVITY

Connectivity is facing high demand during the quarter, albeit with some variation depending on the client and industry. Operations in Poland are still developing very well, contributing to high profitability for the entire business area. The Swedish operations are affected by changes in some projects, but with a stable underlying development.

"We are succeeding with securing a satisfactory development in the current market situation, thanks to intense efforts in extending ongoing projects and gaining new assignments. The market development remains hard to assess, but we see a stable demand for our services during the quarter," says Lennart Waldenström.

Insight

	JUL-SEP 2023	JUL-SEP 2022	JUL-SEP 2022 incl. acquisition 1)
Sales, SEK, million	170.4	136.0	164.1
EBITA, SEK, million	-10.8	-8.3	-4.6
EBITA margin, %	-6.3	-6.1	-2.8
Number of employees at the end of the period	602	482	545

1) Net sales pertain to the acquisition of Ascend AB, and Ionic AB from July to September 2022.

Insight supports its clients in creating agile organizations and performing digital transformations, from idea to result. With a focus on giving clients a deeper understanding for their operations and supporting them in their transformation efforts, from idea to result, Insight's consultants contribute to business models being shifted and adapted to the digital transformation. Using data analytics, Knowit Insight can help companies find possibilities, identify challenges, and make data-driven decisions to improve their operations.

Insight's roughly 600 employees support Nordic companies in areas like growth and profitability strategies, development of new business models, change management, and cybersecurity. Insight's offer in cybersecurity is in particularly high demand. Clients are found in both the public and the private sector. Investments in Knowit's management consulting operations in the past year have created a significantly broader and more attractive offer for Nordic clients.

COMMENTS FROM THE EVP OF INSIGHT

The quarter has entailed a continuing downward trend as regards utilization, in particular as regards traditional management consultancy assignments. At the same time, we are seeing continued strong demand in the defense sector and cybersecurity.

Insight has had a positive net recruitment during the quarter, where the majority of new employees have quickly found assignments. At the same time, the actions taken to decrease costs and deal with a generally weakened demand have taken somewhat longer than desirable to implement, which will be the main point of focus in coming months.

"We have worked hard to adapt our operations to the current market situation and can see some improvements already during this quarter, for instance in Finland. At the same time, we see that further measures are needed to reach a satisfactory profitability level," says Carin Strindmark.

REFERENCE CASES

Current projects that create client value

Knowit are digitalization consultants that create unique client values by offering digital solutions that help companies and organizations to future-proof their business models and simultaneously create a sustainable society.

KNOWIT DELIVERS CLIENT projects that contribute to societal development and involve the human aspect, based on both usability and privacy. An important part of Knowit's contributions is increasing the clients' understanding of how digitalization can contribute to a circular economy and an improved society.

KNOWIT – A SIGNIFICANT PIECE OF THE PUZZLE IN THE MUNICIPALITY OF UPPSALA'S SUSTAINA-BILITY TRANSFORMATION

For several years, the municipality of Uppsala has been working to digitalize its operations in order to become more sustainable. This journey started with an analysis of the current situation and setting clear, measurable goals for the process. One aspect identified at an early stage was the need to decrease the municipality's use of paper and Knowit's inhouse developed product, SignPort, was the solution to this challenge.

SignPort is a reliable and complete service for digital signatures. The e-signature service is well-adapted for use in the Swedish public sector and larger companies that require both internal and external signatures. Shifting to signing and managing contracts and documents in SignPort means that the operations are making both a sustainable and a secure choice.

The municipality of Uppsala is thorough in measuring its progress in the digitalization process and the implementation of SignPort has already resulted in a significant difference, with decreased processing times and more effective errand management. Furthermore, as lead times and costs for printing and sending physical letters have decreased, as has the time-consuming work of following up to ensure that the recipient has actually received the information. In addition, digital management promotes the rule of law in errand management and communication with citizens.

PUBLIC HEALTH APP KEEPS TRACK OF STOCK-HOLMERS' HEALTH AND THE CARE THEY NEED

Through data collection in the app Hälsometern, Region Stockholm can measure citizens' health to map illnesses and risk factors at an early stage. Thus, healthcare and health-promoting efforts can be adapted to Stockholmers' actual needs, while researchers get data for new health findings and app users get a tool to monitor their health.

Hälsometern, which the Center for Epidemiology and Community Medicine (CES) within Region Stockholm has developed together with Knowit, is available for both iPhone and Android phones. Responses about health and living habits are given through surveys in the app, while data on physical activity are gathered using integrations against Health (iPhone) and Google Fitness (Android) in order to get the most correct values possible. The app replaces the pen-and-paper survey that CES sends out every fourth year to 50,000 randomly selected Stockholmers, to gather health data.

Using the app, Region Stockholm can learn more about different living habits, diseases, and symptoms. This can provide information about why health problems arise, how they affect the population, and how they can be prevented.

The app user, for their part, gets an overview of their diet and exercise habits and can follow health developments over time.

The longitudinal data gathered can also be used for research. Currently, CES is working on a scientific publication showing how Stockholmers' physical activity was affected by the COVID-19 pandemic. The number of steps from walks and runs registered in Hälsometern are the basis for the results and conclusions presented.

REFERENCE CASES

KNOWIT AND TROAX STREAMLINE DESIGN TOOLS FOR MACHINE GUARDING

Troax is a leading global supplier of area protection for indoor use and has developed and built innovative mesh panel solutions in steel since 1955. The heart of Troax' operations is protecting people, property, and processes with products and solutions in machine guarding, storage, and warehousing. Troax offers products of the highest quality and functionality, using automated and environmentally friendly production processes, for instance competitive and flexible module systems for separating storage space, mesh walls, and machine guarding in line with laws and regulations. Through digitalization of various processes, from management of raw materials (steel) to product development, logistics, and sales, Troax can decrease its environmental impact.

Together with Knowit, Troax has developed the platform Drawit, a web-based design tool that makes it possible for Troax and its clients to create and configure designs for machine guarding solutions in a simple and efficient way. The solution has simplified the offer procedure significantly and enabled for end clients to create design in the tool themselves. During the third quarter, the work has focused on developing Drawit, tailored to different markets with varying product ranges and functionalities. The team's main challenge has been to retain uniformity in the Drawit platform, to avoid management of multiple unique systems. Instead, they all use the same code base, and the unique aspects for each version are managed through modules and configuration. An important aspect, as the number of versions continues to increase.

WEBSITE WITH A FOCUS ON ACCESSIBILITY, VERSATILITY, AND AN ATTRACTIVE DESIGN

The goal of GöteborgsOperation is that everyone will feel welcome to concerts and on their website. With the assignment of giving all citizens access to opera, dance, and musicals, a modern and attractive digital platform was needed – accessible to a broader audience, and mirroring the creative nature of the operations. The former site, opera.se, had been created more than ten years ago, with outdated technology, and was not aligned with the new vision.

Together with Knowit, they have created a new website that meets current demands on accessibility and design, with a focus on attracting a broader and younger audience. Regardless of if a visitor wants to explore different events, buy a ticket, or book a table, the design and contents serve not only to inspire and attract buyers, but also focus on guiding the user and telling a story.

There is also a meaningful thought behind the structure on the event pages. The introduction serves to attract new, curious visitors and regular operagoers. The most dedicated opera fans can find and read more detailed information about the events a bit further down in the structure.

Now, a versatile, accessible, and inclusive digital experience, in line with WCAG's standards for accessibility, is being delivered – and has already won several awards.

Strong continued uncertainty on the market

Net sales and profit

The Group JANUARY – SEPTEMBER

Net sales increased to SEK 5,237.4 (4,860.9) million, an increase by 8.5 percent as compared with the corresponding period last year. The exchange rate development of the year has had a positive impact on net sales of SEK 64.9 (130.0) million.

Net sales increased to SEK 2,354.6 (2,304.5) million in Sweden, were SEK 1,503.2 (1,522.7) million in Norway, increased to SEK 648.3 (444.8) million in Denmark, to SEK 570.3 (482.2) million in Finland, and to SEK 182.6 (145.1) million in Poland. Sales per employee were KSEK 1,276 (1,293).

The operating profit before amortization of intangible assets (EBITA) was SEK 348.6 (418.5) million. The adjusted EBITA profit was SEK 349.8 (429.1) million, adjusted for acquisition costs of SEK – (7.9) million and integration costs of SEK 1.2 (2.7) million. EBITA was affected negatively by SEK 17.4 million regarding allocated personnel costs for employees on garden leave during the period of notice. The exchange rate development has had a negative impact on EBITA of SEK -0.3 (9.2) million.

In Sweden, EBITA was SEK 187.9 (292.2) million, in Norway it was SEK 120.3 (143.6) million, in Denmark it increased to SEK 42.0 (33.4) million, in Finland to SEK 39.2 (22.8) million, and in Poland to SEK 21.2 (16.1) million.

The EBITA margin was 6.6 (8.6) percent. The adjusted EBITA margin was 6.6 (8.8) percent.

Amortization and write-downs of intangible assets amounted to SEK -144.7 (-102.9) million, affected by increased amortization related to the acquisitions of Swedspot AB, Miracle A/S, Marketing Clinic Oy, Ascend AB, and Ionic AB, and writedowns of activated development costs in Zizr AS.

The operating profit after financial items was SEK 205.1 (347.0) million. The financial net was SEK 1.2 (31.4) million, affected mainly by increased interest revenue of SEK 9.9 (1.4) million, interest costs of SEK -48.0 (-9.7) million, and revaluation of additional consideration totaling SEK 46.4 (-13.2) million. The past year was positively affected by disposal of shares in Stacc AS totaling SEK 65.6 million.

The results after tax were SEK 150.3 (273.2) million. Tax for the period was SEK -54.8 (-73.8) million. This year's taxes are affected by a correction for the previous year's taxes of SEK -5.8 million and reversed loss carry forwards. The non-controlling interests' share of profit for the year was SEK 1.5 (6.2) million. Earnings per share were SEK 5.43 (9.74).

THE THIRD QUARTER

Net sales increased to SEK 1,544.1 (1,520.9) million, an increase by 1.5 percent as compared with the corresponding period last year. Compared with the corresponding period last year, the exchange rate development has had a positive impact on net sales of SEK 41.4 (50.2) million.

Net sales were SEK 660.3 (663.6) million in Sweden, SEK 441.8 (471.1) million in Norway, increased to SEK

204.1 (190.1) million in Denmark, to SEK 170.6 (137.9) million in Finland, and to SEK 62.7 (52.2) in Poland. Sales per employee were KSEK 378 (387).

The operating profit before amortization of intangible assets (EBITA) was SEK 74.8 (90.0) million. The adjusted EBITA profit was SEK 74.9 (94.5) million, adjusted for acquisition costs of SEK – (4.1) million and integration costs of SEK 0.1 (0.4) million. EBITA was affected negatively by SEK 13.8 million regarding allocated personnel costs for employees on garden leave during the period of notice. Compared with the corresponding period last year, the exchange rate development has had a positive impact on EBITA of SEK 1.3 (2.5) million. EBITA was affected by a smaller positive impact through the sale of the subsidiary Zizr AS.

In Sweden, EBITA was SEK 19.8 (56.5) million, in Norway it was SEK 29.9 (31.3) million, in Denmark it increased to SEK 17.8 (10.4) million, in Finland to SEK 11.1 (4.4) million, and in Poland to SEK 9.5 (6.9) million.

The EBITA margin was 4.8 (5.9) percent and the adjusted EBITA margin was 4.9 (6.2) percent.

Amortization and write-downs of intangible assets amounted to SEK -58.9 (-39.9) million, affected by increased amortization related to acquisitions and write-downs of activated development costs in Zizr AS.

The operating profit after financial items increased to SEK 38.7 (37.2) million. The financial net increased to SEK 22.8 (-12.9) million, affected primarily by increased interest revenue of SEK 3.4 (0.9) million and increased interest costs of SEK -16.7 (-6.4) million, as well as revaluation of additional consideration totaling SEK 30.9 (-10.0) million.

The results after tax increased to SEK 26.3 (21.2) million. Tax for the period was SEK -12.4 (-16.0) million. This period's taxes are affected by reversed loss carry forwards. The non-controlling interests' share of profit for the year was SEK -3.2 (2.2) million. Earnings per share increased to SEK 1.08 (0.69).

The segments JANUARY – SEPTEMBER

The Group's operations are organized so that the corporate management primarily follows up on net sales, EBITA profit, and average number of employees for the Group's segments. The Corporate Management Team does not follow up on balance sheet items other than intangible assets across the different segments. The Corporate Management Team primarily follows up on five segments: Solutions, Experience, Connectivity, Insight, and other. Other items include cloud services of a smaller scope, the parent companies' group-wide costs for management, financials, and marketing, and adjustments related to IFRS 16, which are not allocated to the segments.

Net sales for the segment Solutions increased to SEK 2,937.5 (2,803.5) million, for the segment Experience to SEK 1,173.4 (1,153.5) million, for the segment Connectivity to SEK 823.1 (752.9) million, and for the segment Insight to SEK 652.9 (476.6) million.

EBITA was SEK 227.6 (288.1) million for the segment Solutions, was SEK 87.6 (119.4) million for the segment Experience, was SEK 80.2 (83.9) million for the segment Connectivity, and was SEK 33.5 (35.9) million for the segment Insight.

The EBITA margin was 7.7 (10.3) percent for the segment Solutions, 7.5 (10.4) percent for the segment Experience, SEK 9.7 (11.1) for the segment Connectivity, and 5.1 (7.5) percent for the segment Insight.

THE THIRD QUARTER

Net sales for the segment Solutions were SEK 884.2 (894.8) million, for the segment Experience they were SEK 331.3 (338.7) million, for the segment Connectivity they increased to SEK 252.2 (247.5) million, and for the segment Insight to SEK 170.4 (136.0) million.

EBITA was SEK 62.3 (72.2) million for the segment Solutions, was SEK 7.4 (21.4) million for the segment Experience, was SEK 26.2 (29.0) million for the segment Connectivity, and was SEK -10.8 (-8.3) million for the segment Insight.

The EBITA margin was 7.0 (8.1) percent for the segment Solutions, 2.2 (6.3) percent for the segment Experience, 10.4 (11.7) for the segment Connectivity, and -6.3 (-6.1) percent for the segment Insight.

Cash flow JANUARY – SEPTEMBER

Cash flow from operating activities was SEK 128.5 (155.9) million. The previous year was affected negatively by tax paid, for instance related to restructuring effects in Finland. The change in working capital was SEK -200.7 (-127.6) million, affected mainly by increased accounts receivable, but also by decreased short-term liabilities.

Cash flow from investment activities amounted to SEK -190.3 (-517.1) million, affected mainly by additional consideration and investments in tangible assets. Last year's figures were affected by acquisitions and disposals of financial assets.

Cash flow from financing activities was SEK -328.2 (144.5) million, affected mainly by dividends, loans taken, and amortizations.

Total cash flow was SEK -390.0 (-216.7) million.

THE THIRD QUARTER

Cash flow from operating activities was SEK -99.9 (20.0) million, where the change in working capital had an impact of SEK -223.8 (-54.0) million, affected mainly by increased accounts receivable, but also by decreased short-term liabilities.

Cash flow from investment activities amounted to SEK -9.3 (-313.6) million. Last year's figures were affected by acquisitions and disposals of financial assets.

Cash flow from financing activities was SEK -136.5 (217.5) million, affected mainly by dividends, loans taken, and amortizations.

Total cash flow was SEK -245.7 (-76.1) million.

Financial position

JANUARY – SEPTEMBER

Cash and cash equivalents were SEK 101.9 (638.5) million as per September 30, 2023. Goodwill and other intangible assets increased to SEK 4,528.6 (4,379.2) million, of which goodwill was SEK 3,778.5 (3,523.3) million, and other intangible assets were SEK 750.1 (855.9) million.

Equity increased to SEK 4,164.1 (4,136.9) million. Interest-bearing liabilities totaled SEK 1,233.4 (1,466.6) million by September 30, 2023, with long-term liabilities totaling SEK 1,049.6 (1,259.7) million and short-term liabilities were SEK 183.8 (206.9) million. Knowit has a facility of SEK 300 million that falls due in 2026 and a facility of SEK 750 million that falls due in 2027. The credit facilities granted total SEK 1,050 million. As per September 30, 2023, SEK 600.0 (800.0) million of the credit facilities granted were used. Leasing debts increased to SEK 571.1 (447.7) million. Debts related to future consideration in subsidiaries totaled SEK 62.4 (218.9) million.

The equity/asset ratio increased to 57.5 (57.3) percent as per September 30, 2023.

Employees

JANUARY – SEPTEMBER

On September 30, 2023, a total of 4,383 (4,315) people were employed by the Group. During 2023, the number of employees has decreased by 27 people compared with December 31, 2022.

The average number of employees has during the period increased to 4,134.0 (3,759.9). The average number of employees in Sweden increased to 2,043.2 (1,930.3), in Norway to 1,019.5 (920.0), in Finland to 471.1 (416.0), in Poland to 305.0 (282.5), and in Denmark to 283.9 (197.0).

Employees on garden leave during the period of notice are included in the number of employees, but not the average number of employees.

Long-term incentive program (LTIP)

At the AGM 2023, the decision was made to implement a long-term share-based incentive program. LTIP 2023 was offered to 37 employees consisting of members of the corporate management team and members of local and extended management teams at the business area level. To participate in the LTIP 2023, the participant must make an investment of their own in company shares, in accordance with the terms of the program, and these shares must be allocated to the program. Each participant may invest in investment shares up to a total corresponding to at most 10 percent of their fixed annual salary before taxes. Each share acquired for this purpose is an "investment share." Depending on the participant category that a participant belongs to, the participant is allocated a certain number of share rights per investment shares acquired. For category 1, each investment share entitles the holder to four share rights, for category 2, each investment share entitles the holder to three share rights, and for category 3, each investment share entitles the holder to two share rights.

Following the selected vesting period of three years, the participants will be allotted shares in the Company, free of cost, if certain conditions are met. These conditions are, with some exceptions, continued employment in the Group during the vesting period, that the holders' shareholdings in the Company have been unchanged during that period, and that certain performance goals have been reached. The performance goals are earnings per share, EBITA margin, and an ESG measure. Final allocation of share rights shall be based to 45 percent on earnings per share, 45 percent on the EBITA margin, and 10 percent on the ESG measure. The performance goals include both a minimum level that must be reached in order for any

allocation at all to be made, and a maximum level above which no further allocation will be made.

The maximum number of shares in the Company that can be allocated to the participants within the framework of the LTIP 2023 shall be limited to 110,000, corresponding to around 0.4 percent of the total shares and voting rights in the Company. The maximum value that a participant can get for each share right is limited to SEK 820. As of September 30, 2023, 96,211 share rights have been allocated to 35 employees.

The fair value of the share rights on the allocation day (SEK 184.64 per share) was calculated using Black & Scholes. In the valuation, account has been taken of the value limitations included in the program.

The share

On May 3, 2023, the AGM authorized the Board to decide on a program for repurchasing of own shares, to cover undertakings within the framework of the long-term incentive program (LTIP) 2023. Repurchasing of a maximum of 137,423 shares may take place on one or more occasions before the AGM 2024. As of September 30, 2023, no own shares have been repurchased.

Seasonal variation

The Group's revenue and operating results are subject to seasonal variation, which means that they vary by quarter. The number of working days and, by extension, normal working hours, affect net sales and profit.

The quarter that includes the Easter period – the first or second – has lower revenue, leading to a lower profit, as the costs are largely unchanging, unlike the revenue. The revenue is affected negatively, as the activity on the market decreases or is non-existent on these days. Further, the second and third quarter of the Group's financial year are affected by including parts of the summer holiday period, which impacts on the demand for the Group's services. The fourth quarter is affected by the work days and normal working hours that are dropped due to the Christmas and New Year holidays.

Transactions with related parties

No significant transactions have occurred during the period. For more information, see Note 29 Transactions with related parties, page 99 in the Annual Report 2022.

PARENT COMPANY

Results and financial position

JANUARY – SEPTEMBER

The operating profit/loss before amortization of intangible assets (EBITA) was SEK -74.7 (-96.3) million. The financial net was SEK 6.2 (270.8) million; the previous year's figures affected positively by dividends from subsidiaries. The profit/loss after financial net was SEK -72.5 (170.5) million.

As per September 30, 2023, equity was SEK 2,705.4 (2,727.4) million. Untaxed reserves, mainly accrual funds, increased to SEK 159.6 (128.0) million.

During the third quarter 2023, the financing activities formerly reported in the parent company have been moved to a subsidiary.

OTHER INFORMATION

Accounting principles and forward-looking information

Annual General Meeting

The Company's Annual General Meeting will take place on Friday May 3, 2024, at 1 PM, in Knowit's facilities at Sveavägen 20, Stockholm. Notice will be made public through a press release in Post och Inrikes Tidningar and Dagens Industri, and published on Knowit's website.

Nomination Committee

Pursuant to the instruction to the Nomination Committee of Knowit AB, the Nomination Committee shall consist of one representative for each of the three largest registered shareholders that wish to participate in the work, along with the Chairman of the Board.

OTHER INFORMATION

-

The new Nomination Committee for the AGM 2024 consists of: Jonas Backman, appointed by Protector Forsikring ASA, Margareta Alestig, appointed by JCR Group AB, Teresa Enander, appointed by Formica Capital AB, and Jon Risfelt, Chairman of the Board.

Teresa Enander has been named Chairman of the Nomination Committee. The Nomination Committee represents around 30 percent of the ownership in the Company.

Essential risks and uncertainty factors

Knowit's general essential business risks consist of reduced demand for consultancy services, problems attracting and retaining skilled personnel, price pressures and financial risks related to credit and exchange rates and, to a lesser extent, risks related to fixed price projects.

Knowit is affected by general political, financial, and economic circumstances. The current situation with a war in our vicinity and high inflation combined with high interest rates has significantly increased the risk levels and shaped the market with large negative effects. With a decreased demand for the Company's services comes short-term challenges with decreased invoicing pace, where the business model creates a lead time in adjusting capacity to reach the high levels of the past. Further, the decentralized steering model creates a need for each respective subsidiary to quickly realize short-term measures in relation to costs. This can in the short term affect the Company's possibilities to generate a profit and growth in line with historic values and the financial targets.

For more information on risks, see the Annual Report 2022, pages 60-63 and 83-84.

Accounting principles

This report has been prepared in accordance with IAS 34, Interim Financial Reporting, and the Swedish Annual Accounts Act. The Interim Report for the Parent Company has been prepared in accordance with the Chapter 9 of the Swedish Annual Accounts Act, Interim Reporting.

REMUNERATION TO EMPLOYEES, SHARE RIGHTS

The fair value of the share rights that are allocated to employees free of cost through the Group's long-term incentive program (LTIP) are carried as expenses during the vesting period. The fair value is calculated as per the allocation day and is reported in the balance sheet. The assessment of how many shares are expected to be allocated is performed anew at the end of each reporting period and any deviations are reported in the income statement, with corresponding adjustments made to equity.

The social fees that result from allocations of share rights are reported in the same way as share-related remuneration settled in cash. Costs for social fees are reported over the period during which the service is performed. The fair value of the liability is revalued at the end of each respective reporting period.

For the Group and the Parent Company, the same accounting principles and bases for calculation have been applied as in the latest Annual Report, excepting the altered accounting principles described below.

Information in accordance with IAS 34.16A appears in the financial reports and connected notes, as well as in other parts of the Interim Report.

All amounts in this report are given in million Swedish kronor (SEK, millions), unless otherwise stated. Rounding differences may occur.

Events after the end of the interim period

No significant events have occurred after the end of the interim period.

Forward-looking information

Forward-looking information in this report is based on the expectations of Knowit's management team at the time of the report. While Knowit's management team assesses these expectations to be reasonable, there is no guarantee that these expectations are or will turn out to be correct. Consequently, future outcomes may vary significantly compared with what is presented in the forwardlooking information, depending for example on changed market conditions for the Knowit corporation's offerings and more general conditions related to economy, market, competition, regulatory changes and other alterations in policy, as well as variations on exchange rates. Knowit does not commit to update or correct such forwardlooking information beyond what is required by law.

Financial calendar

YEAR-END REPORT 2023

February 8, 2024, 7:30 AM

INTERIM REPORT JANUARY – MARCH 2024

May 3, 2024, 7:30 AM

AGM 2024 May 3, 2024, 1 PM

INTERIM REPORT JANUARY – JUNE 2024 July 19, 2024, 7:30 AM

INTERIM REPORT JANUARY – SEPTEMBER 2024 October 25, 2024, 7:30 AM

YEAR-END REPORT 2024 February 7, 2025, 7:30 AM

Address and contact information

Knowit AB (company reg.no. 556391-0354) Box 3383, 103 68 Stockholm Visiting address: Sveavägen 20 Phone: + 46 (0)8 700 66 00, Fax: +46 (0)8 700 66 10 knowit.eu

For more information

Per Wallentin, President and CEO, Knowit AB (publ), +46 (0)8 700 66 00 or

Christina Johansson, Head of Communications, Knowit AB (publ), +46 (0)8 700 66 00 or +46 (0)705 421 734 or Marie Björklund, CFO, Knowit AB (publ), +46 (0)8 700 66 00.

About Knowit

-

Knowit are digitalization consultants with a vision to create a sustainable and humane society through digitalization and innovation. Knowit supports its clients in the digital transformation and stands out among other consultancy firms through its decentralized organization and agile work methods in client assignments. The operations are divided into four business areas – Solutions, Experience, Connectivity, and Insight – which offer services in bespoke system development, digital customer experiences, the internet of things, cloud, cybersecurity, and management consultancy. Competences from several business areas are often combined in client projects.

Knowit was founded in 1990 and now has around 4,380 employees, mainly in the Nordic countries, but also in operations in Germany and Poland. Knowit AB (publ) has been listed on the stock market since 1997 and is currently listed on Nasdaq OMX Stockholm Mid Cap. For more information on Knowit, please visit knowit.eu.

Review report

TO THE BOARD OF DIRECTORS OF KNOWIT AB (PUBL Corp. id. 556391-0354

Introduction

We have reviewed the condensed interim financial information (Interim Report) of Knowit AB (publ) as of September 30, 2023 and the nine-month period then ended. The Board of Directors and the Managing Director are responsible for the preparation and presentation of this interim report in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements ISRE 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and other generally accepted auditing practices and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the Interim Report is not prepared, in all material respects, for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act

Stockholm October 25, 2023 KPMG AB

HELENA ARVIDSSON ÄLGNE JONAS ERIKSSON Authorized Public Authorized Public Accountant Accountant Accountant-in-Charge

Consolidated income statement in summary

SEK, MILLIONS	JUL-SEP 2023	JUL-SEP 2022	JAN-SEP 2023	JAN-SEP 2022	JAN-DEC 2022
Net sales	1,544.1	1,520.9	5,273.4	4,860.9	6,833.8
Operating costs	-1,425.4	-1,393.9	-4,790.0	-4,335.9	-6,088.5
Depreciation of tangible fixed assets	-43.9	-37.0	-134.8	-106.5	-148.8
Operating result before amortization of intangible assets (EBITA)	74.8	90.0	348.6	418.5	596.5
Amortization of intangible fixed assets	-43.5	-39.9	-129.3	-102.9	-149.3
Write-downs of intangible assets	-15.4	–	-15.4	–	–
OPERATING RESULT (EBIT)	15.9	50.1	203.9	315.6	447.2
Financial incomes	34.3	16.3	61.7	83.3	94.9
Financial expenses	-11.5	-29.2	-60.5	-51.9	-58.4
RESULT AFTER FINANCIAL ITEMS	38.7	37.2	205.1	347.0	483.7
Tax	-12.4	-16.0	-54.8	-73.8	-91.5
RESULT FOR THE PERIOD	26.3	21.2	150.3	273.2	392.2
Result for the period attributable to shareholders in Parent Company	29.5	19.0	148.8	267.0	385.0
Result for the period attributable to non-controlling interests' holdings	-3.2	2.2	1.5	6.2	7.2
EARNINGS PER SHARE
Earnings per share, before dilution, SEK	1.08	0.69	5.43	9.74	14.05
Earnings per share, after dilution, SEK	1.08	0.69	5.43	9.74	14.05

Consolidated comprehensive income in summary

SEK, MILLIONS	JUL-SEP 2023	JUL-SEP 2022	JAN-SEP 2023	JAN-SEP 2022	JAN-DEC 2022
Profit for the period	26.3	21.2	150.3	273.2	392.2
Items that may later be reclassified to profit or loss
Profit/loss from hedging of exchange rate risks in foreign operations	-22.4	16.2	25.2	36.0	51.4
Tax effect of hedging of exchange rate risks	4.6	-3.3	-5.2	-7.4	-10.6
Translation differences for the period from recalculation of foreign operations	-31.9	23.1	2.7	64.1	103.8
OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF TAX	-49.7	36.0	22.7	92.7	144.6
Total comprehensive income for the period	-23.4	57.2	173.0	365.9	536.8
Total comprehensive income attributable to shareholders in Parent Company	-20.0	54.6	171.6	359.3	529.2
Total comprehensive income attributable to non-controlling interests' holdings	-3.4	2.6	1.4	6.6	7.6

Consolidated balance sheet in summary

SEK, MILLIONS	2023-09-30	2022-09-30	2022-12-31
Assets
Intangible fixed assets	4,528.6	4,379.2	4,629.7
Tangible fixed assets	652.6	504.6	723.9
Financial fixed assets	9.3	10.8	11.4
Deferred tax asset	100.6	105.0	106.5
Current assets	1,853.4	1,586.2	1,636.5
Cash equivalents	101.9	638.5	497.6
TOTAL ASSETS	7,246.4	7,224.3	7,605.6
Equity and liabilities
Share capital	27.4	27.4	27.4
Other capital provided and provisions	2,998.1	2,920.5	2,976.1
Retained earnings, including profit for the period	1,124.1	1,181.5	1,183.0
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY	4,149.6	4,129.4	4,186.5
Non-controlling interests	14.5	7.5	21.2
TOTAL EQUITY	4,164.1	4,136.9	4,207.7
Non-current provisions	254.7	261.3	276.5
Interest-bearing non-current liabilities	1,049.6	1,259.7	1,303.3
Interest-bearing current liabilities	183.8	206.9	291.4
Other current liabilities	1,594.2	1,359.5	1,526.7
TOTAL EQUITY AND LIABILITIES	7,246.4	7,224.3	7,605.6

Consolidated cash flow statement in summary

SEK, MILLIONS	JUL-SEP 2023	JUL-SEP 2022	JAN-SEP 2023	JAN-SEP 2022	JAN-DEC 2022
Operating activities
Profit before taxes	38.7	37.2	205.1	347.0	483.7
Adjustment for non-cash items	88.9	60.5	194.8	128.4	245.0
Paid taxes	-3.7	-23.7	-70.7	-191.9	-195.1
CASH FLOW BEFORE CHANGES IN OPERATING CAPITAL	123.9	74.0	329.2	283.5	533.6
Changes in operating capital	-223.8	-54.0	-200.7	-127.6	-58.3
CASH FLOW FROM OPERATING ACTIVITIES	-99.9	20.0	128.5	155.9	475.3
Investing activities
Acquisition of businesses	–	-299.5	-146.9	-548.1	-752.9
Disposals of businesses	-2.2	–	-2.2	–	–
Acquisition on intangible assets	-4.1	-5.5	-10.8	-7.0	-10.0
Acquisition of property, plant and equipment	-3.0	-8.6	-30.4	-37.3	-63.3
Disposal of financial assets	–	–	–	75.3	75.3
CASH FLOW FROM INVESTING ACTIVITIES	-9.3	-313.6	-190.3	-517.1	-750.9
Financing activities
Amortization of loans and leasing liabilities	-136.5	-31.6	-313.2	-92.1	-228.7
Loans raised	–	250.1	100.0	344.7	344.7
Dividend	–	-1.0	-115.0	-108.1	-204.1
CASH FLOW FROM FINANCING ACTIVITIES	-136.5	217.5	-328.2	144.5	-88.1
CASH FLOW FOR THE PERIOD	-245.7	-76.1	-390.0	-216.7	-363.7
Cash and cash equivalents at the beginning of the period	365.1	715.9	497.7	851.4	851.4
Translation differences in cash and cash equivalents	-17.5	-1.3	-5.8	3.8	9.9
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD	101.9	638.5	101.9	638.5	497.6

Consolidated statement of changes in equity in summary

SEK, MILLIONS	JUL-SEP 2023	JUL-SEP 2022	JAN-SEP 2023	JAN-SEP 2022	JAN-DEC 2022
Opening balance	4,289.0	4,083.8	4,207.7	3,892.4	3,892.4
Profit/loss from hedging of exchange rate risks in foreign operations	-22.4	16.2	25.2	36.0	51.4
Tax effect of hedging of exchange rate risks	4.6	-3.3	-5.2	-7.4	-10.6
Translation differences for the period from recalculation of foreign operations	-31.9	23.1	2.7	64.1	103.8
Result for the period	26.3	21.2	150.3	273.2	392.2
TOTAL PROFIT FOR THE PERIOD RECOGNIZED IN THE INCOME STATEMENT	-23.4	57.2	173.0	365.9	536.8
TOTAL BEFORE TRANSACTIONS WITH SHAREHOLDERS	4,265.6	4,141.0	4,380.7	4,258.3	4,429.2
Non-controlling interests	–	0.2	–	0.2	6.3
Additional capital from non-controlling interests	-3.6	-8.2	-3.9	-18.4	-28.4
Dividend paid	-102.8	-1.0	-217.8	-108.1	-204.1
Share-based payment	0.6	–	0.8	–	–
Acquisition of partially owned subsidiary with non-controlling interests	–	4.9	–	4.9	4.7
Disposal of partially owned subsidiary with non-controlling interests	4.3	–	4.3	–	–
CLOSING BALANCE	4,164.1	4,136.9	4,164.1	4,136.9	4,207.7

Performance measures and data per share

	JUL-SEP 2023	JUL-SEP 2022	JAN-SEP 2023	JAN-SEP 2022	JAN-DEC 2022
Number of employees at end of period	4,383	4,315	4,383	4,315	4,410
Average number of employees	4,084.7	3,926.1	4,134.0	3,759.9	3,877.2
Sales per average number of employees, (SEK, 000s)	378	387	1,276	1,293	1,763
Result after financial items per average number of employees, (SEK, 000s)	9	9	50	92	125
Return on total capital, %	0.7	0.9	3.6	5.9	7.8
Return on equity, %	0.6	0.5	3.6	6.8	9.7
Return on capital employed, %	0.9	1.2	4.7	7.7	10.2
EBITA margin, %	4.8	5.9	6.6	8.6	8.7
Adjusted EBITA margin, %	4.9	6.2	6.6	8.8	8.9
Equity ratio, %	57.5	57.3	57.5	57.3	55.3
Net debt ratio, multiples	0.3	0.2	0.3	0.2	0.3
Earnings per share, SEK
Before dilution	1.08	0.69	5.43	9.74	14.05
After dilution	1.08	0.69	5.43	9.74	14.05
Equity per share, SEK
Before dilution	151.40	150.66	151.40	150.66	152.74
After dilution	151.40	150.66	151.40	150.66	152.74
Average number of shares, 000s
Before dilution	27,409	27,409	27,409	27,409	27,409
After dilution	27,409	27,409	27,409	27,409	27,409
Number of shares on balance sheet day, 000s
Before dilution	27,409	27,409	27,409	27,409	27,409
After dilution	27,409	27,409	27,409	27,409	27,409

Consolidated segment reporting in summary

JULY – SEPTEMBER 2023, SEK, MILLIONS	Solutions	Experience	Connectivity	Insight	Other	Total
External net sales	820.4	303.0	254.3	166.1	0.3	1,544.1
Net sales between segments	63.8	28.3	-2.1	4.3	-94.3	–
NET SALES	884.2	331.3	252.2	170.4	-94.0	1,544.1
Operating result before amortization of intangible assets (EBITA)	62.3	7.4	26.2	-10.8	-10.3	74.8
Amortization of intangible assets	-17.7	-6.7	-10.7	-6.6	-1.8	-43.5
Write-downs of intangible assets	-15.4	–	–	–	–	-15.4
OPERATING PROFIT (EBIT)	29.2	0.7	15.5	-17.4	-12.1	15.9
Result after financial items						38.7
RESULT FOR THE PERIOD						26.3
EBITA MARGIN, %	7.0	2.2	10.4	-6.3		4.8
Average number of employees	1,798.9	906.5	709.6	535.6	134.1	4,084.7
JULY – SEPTEMBER 2022, SEK, MILLIONS	Solutions	Experience	Connectivity	Insight	Other	Total
External net sales	839.3	311.7	236.4	120.0	13.5	1 520.9
Net sales between segments	55.5	27.0	11.1	16.0	109.6	–
NET SALES	894.8	338.7	247.5	136.0	-96.1	1,520.9
Operating result before amortization of intangible assets (EBITA)	72.2	21.4	29.0	-8.3	-24.3	90.0
Amortization of intangible assets	-16.6	-6.4	-11.6	-3.6	-1.7	-39.9
OPERATING PROFIT (EBIT)	55.6	15.0	17.4	-11.9	-26.0	50.1
Result after financial items						37.2
RESULT FOR THE PERIOD						21.2
EBITA MARGIN, %	8.1	6.3	11.7	-6.1		5.9
Average number of employees

The Group's operations are organized so that the Corporate Management Team primarily follows up on net sales, EBITA profit, and average number of employees for the Group's segments. The Corporate Management Team does not follow up on balance sheet items other than intangible assets across the different operating segments. Other items include cloud services of a smaller scope, where Knowit can, through its partnerships, offer the cloud supplier that is best suited for the client's specific needs and IT structure. Other items also include the parent companies' group-wide costs for management, financials, and marketing, and adjustments related to IFRS 16, which are not allocated to the segments.

Consolidated segment reporting in summary, continued

JANUARY – SEPTEMBER 2023, SEK, MILLIONS	Solutions	Experience	Connectivity	Insight	Other	Total
External net sales	2,722.4	1,086.9	807.3	624.1	32.7	5,273.4
Net sales between segments	215.1	86.5	15.8	28.8	-346.2	–
NET SALES	2,937.5	1,173.4	823.1	652.9	-313.5	5,273.4
Operating result before amortization of intangible assets (EBITA)	227.6	87.6	80.2	33.5	-80.3	348.6
Amortization of intangible assets	-52.7	-19.7	-31.8	-19.6	-5.5	-129.3
Write-downs of intangible assets	-15.4	–	–	–	–	-15.4
OPERATING PROFIT (EBIT)	159.5	67.9	48.4	13.9	-85.8	203.9
Result after financial items						205.1
RESULT FOR THE PERIOD						150.3
EBITA MARGIN, %	7.7	7.5	9.7	5.1		6.6
Average number of employees	1,825.5	924.2	717.6	527.3	139.4	4,134.0
Intangible assets	2,061.0	724.5	1,157.3	578.3	7.5	4,528.6
Tangible fixed assets	16.9	4.4	9.8	2.8	618.7	652.6
JANUARY – SEPTEMBER 2022, SEK, MILLIONS	Solutions	Experience	Connectivity	Insight	Other	Total
External net sales	2,619.9	1,072.1	706.3	421.6	41.0	4,860.9
Net sales between segments	183.6	81.4	46.6	55.0	-366.6	–
NET SALES	2,803.5	1,153.5	752.9	476.6	-325.6	4,860.9
Operating result before amortization of intangible assets (EBITA)	288.1	119.4	83.9	35.9	-108.8	418.5
Amortization of intangible assets	-40.6	-19.1	-30.9	-7.2	-5.1	-102.9
OPERATING PROFIT (EBIT)	247.5	100.3	53.0	28.7	-113.9	315.6
Result after financial items						347.0
RESULT FOR THE PERIOD						273.2
EBITA MARGIN, %	10.3	10.4	11.1	7.5		8.6
Average number of employees	1,699	887	670	380	124	3,760
Intangible assets	2,100.1	741.4	1,186.2	337.1	14.4	4,379.2
Tangible fixed assets	17.1	4.7	10.8	1.7	470.3	504.6

The Group's operations are organized so that the Corporate Management Team primarily follows up on net sales, EBITA profit, and average number of employees for the Group's segments. The Corporate Management Team does not follow up on balance sheet items other than intangible assets across the different operating segments. Other items include cloud services of a smaller scope, where Knowit can, through its partnerships, offer the cloud supplier that is best suited for the client's specific needs and IT structure. Other items also include the parent companies' group-wide costs for management, financials, and marketing, and adjustments related to IFRS 16, which are not allocated to the segments.

Group revenue from client contracts

SEK, MILLIONS	JUL-SEP 2023	JUL-SEP 2022	JAN-SEP 2023	JAN-SEP 2022	JAN-DEC 2022
GEOGRAPHIC CATEGORIZATION Fee revenue
Sweden	594.6	612.7	2,172.0	2,191.2	3,047.7
Norway	427.9	463.2	1,459.1	1,487.3	2,057.0
Denmark	175.8	130.3	568.2	406.1	615.7
Finland	161.0	167.0	543.8	417.5	580.8
Poland	60.5	51.6	178.5	143.1	197.2
Other	4.6	6.3	14.4	16.0	22.7
TOTAL FEE REVENUE	1,424.3	1,431.1	4,935.8	4,661.2	6,521.1
Other revenue
Sweden	65.8	51.0	182.7	113.4	162.8
Norway	13.9	7.9	44.1	35.4	53.0
Denmark	28.3	7.7	80.1	22.2	61.1
Finland	9.6	23.1	26.5	27.3	33.3
Poland	2.3	0.5	4.2	1.9	2.5
Other	0.0	-0.3	0.0	-0.5	0.0
TOTAL OTHER REVENUE	119.8	89.9	337.5	199.7	312.7
TOTAL NET REVENUE	1,544.1	1,520.9	5,273.4	4,860.9	6,833.8
SEK, MILLIONS	JUL-SEP 2023	JUL-SEP 2022	JAN-SEP 2023	JAN-SEP 2022	JAN-DEC 2022
SEGMENT CATEGORIZATION Fee revenue
Solutions	819.9	848.2	2,775.3	2,712.9	3,769.3
Experience	310.5	316.2	1,108.9	1,095.1	1,502.6
Connectivity	216.6	219.9	713.6	684.0	951.7
Insight	165.9	134.0	635.1	467.4	716.1
Other	-88.6	-87.1	-297.1	-298.2	-418.6
TOTAL FEE REVENUE	1,424.3	1,431.1	4,935.9	4,661.2	6,521.1
Other revenue
Solutions	64.3	46.6	162.2	90.6	155.1
Experience	20.8	22.5	64.5	58.4	82.8
Connectivity	35.6	27.6	109.5	68.9	88.6
Insight	4.5	2.0	17.8	9.2	14.8
Other	-5.4	-8.9	-16.4	-27.5	-28.6
TOTAL OTHER REVENUE	119.8	89.8	337.5	199.7	312.7
TOTAL NET REVENUE	1,544.1	1,520.9	5,273.4	4,860.9	6,833.8

The revenue category Licensing revenue is reported under the category Other revenue, as the amount is not significant. For more information, see Note 1 Accounting and valuation principles, pages 77-83 in the Annual Report 2022.

Financial assets and liabilities at fair value and categorization

	2023-09-30			2022-09-30
SEK, MILLIONS	Financial assets valued at amortized costs	Financial assets valued at fair value in income statement	Fair value	Financial assets valued at amortized costs	Financial assets valued at fair value in income statement	Fair value
Assets in balance sheet
Other long-term securities	–	3.1	3.1 1)	–	2.4	2.4 1)
Other long-term receivables	3.0	–	3.0	3.4	–	3.4
Accounts receivable and other receivables	1,580.1	–	1,580.1	1,399.3	–	1,399.3
Cash equivalents	101.9	–	101.9	638.5	–	638.5
TOTAL	1,685.0	3.1	1,688.1	2,041.2	2.4	2,043.6

54,

		2023-09-30		2022-09-30
SEK, MILLIONS	Other financial liabilities	Financial liabilities valued at fair value in income statement	Fair value	Other financial liabilities	Financial liabilities valued at fair value in income statement	Fair value
Liabilities in balance sheet
Future additional considerations	–	37.6	37.6 2)	–	175.2	175.2 2)
Future consideration	24.8	–	24.8 2)	43.7	–	43.7 2)
Other interest-bearing liabilities	1,171.0	–	1,171.0	1,247.7	–	1,247.7
Accounts payable	462.6	–	462.6	347.4	–	347.4
Other liabilities	149.5	–	149.5	367.1	–	367.1
TOTAL	1,807.9	37.6	1,845.5	2,005.9	175.2	2,181.1

1) Fair value pursuant to categorization level 2.

2) Fair value pursuant to categorization level 3.

Reported values of Group financial assets and liabilities, distributed based on classification pursuant to IFRS 9, are summarized in the above table. No financial assets or liabilities are reported at a value that significantly deviates from fair value. For more information, see Note 22 in the Annual Report for 2022.

Future

The table below shows a reconciliation of the opening and closing balances for financial instruments valued at level 3.

contingent additional considerations	Future considerations
196.4	54.4
-46.5	–
–	3.9
-112.3	-33.5
–	–
37.6	24.8
177.7	12.3
24.6	–
–	18.2
-63.5	-11.0
36.4	24.2
175.2	43.7

Income statement Parent Company

SEK, MILLIONS	JUL-SEP 2023	JUL-SEP 2022	JAN-SEP 2023	JAN-SEP 2022	JAN-DEC 2022
Net sales	133.2	162.5	508.2	525.1	730.9
Operating costs	-148.5	-190.4	-577.1	-619.8	-863.2
Depreciation of property, plant and equipment	-2.1	-0.9	-5.8	-1.6	-2.3
OPERATING RESULT BEFORE AMORTIZATION OF INTANGIBLE ASSETS (EBITA)	-17.4	-28.8	-74.7	-96.3	-134.6
Amortization of intangible assets	-1.3	-1.3	-4.0	-4.0	-5.4
OPERATING RESULT (EBIT)	-18.7	-30.1	-78.7	-100.3	-140.0
Financial items	-17.0	265.3	6.2	270.8	724.1
RESULT AFTER FINANCIAL ITEMS	-35.7	235.2	-72.5	170.5	584.1
Appropriations	–	–	–	–	-31.6
Income tax	–	0.4	0.9	0.4	-31.2
RESULT FOR THE PERIOD	-35.7	235.6	-71.6	170.9	521.3

Balance sheet Parent Company

SEK, MILLIONS	2023-09-30	2022-09-30	2022-12-31
Assets
Intangible assets	6.0	11.4	10.0
Property, plant and equipment	33.7	15.5	22.7
Financial non-current assets	4,431.9	5,308.2	5,514.0
Current assets	215.1	493.6	440.9
Cash equivalents	0.0	472.6	329.3
TOTAL ASSETS	4,686.7	6,301.3	6,316.9
Equity and liabilities
Share capital	27.4	27.4	27.4
Statutory reserve	68.0	68.0	68.0
Unrestricted share capital including result for the period	2,610.0	2,632.0	2,886.4
TOTAL EQUITY	2,705.4	2,727.4	2,981.8
Untaxed reserves	159.6	128.0	159.6
Interest-bearing non-current liabilities	–	1,552.5	1,438.3
Non-current provisions	18.1	89.1	84.1
Other current liabilities	1,803.6	1,804.3	1,653.1
TOTAL EQUITY AND LIABILITIES	4,686.7	6,301.3	6,316.9

Financial overview by business area FINANCIAL STATEMENTS

The table shows the outcome for the quarter and interim period, with comparative figures including acquisitions, to facilitate analysis.

SEK, MILLIONS	JUL-SEP 2023	JUL-SEP 2022	JUL-SEP 2022 incl. acquisition 1)	JAN-SEP 2023	JAN-SEP 2022	JAN-SEP 2022 incl. acquisition 2)
The Group
Net sales	1,544.1	1,520.9	1,549.0	5,273.4	4,860.9	5,199.0
Adjusted EBITA profit	74.9	94.5	98.2	349.8	429.1	466.3
Adjusted EBITA margin, %	4.9	6.2	6.3	6.6	8.8	9.0
Number of employees at the end of the period	4,383	4,315	4,378	4,383	4,315	4,378
Business areas
Solutions
Net sales	884.2	894.8	894.8	2,937.5	2,803.5	2,966.2
EBITA profit	62.3	72.2	72.2	227.6	288.1	292.0
EBITA margin, %	7.0	8.1	8.1	7.7	10.3	9.8
Number of employees at the end of the period	1,885	1,921	1,921	1,885	1,921	1,921
Experience
Net sales	331.3	338.7	338.7	1,173.4	1,153.5	1,153.5
EBITA profit	7.4	21.4	21.4	87.6	119.4	119.4
EBITA margin, %	2.2	6.3	6.3	7.5	10.4	10.4
Number of employees at the end of the period	979	1,002	1,002	979	1,002	1,002
Connectivity
Net sales	252.2	247.5	247.5	823.1	752.9	774.2
EBITA profit	26.2	29.0	29.0	80.2	83.9	87.9
EBITA margin, %	10.4	11.7	11.7	9.7	11.1	11.3
Number of employees at the end of the period	763	757	757	763	757	757
Insight
Net sales	170.4	136.0	164.1	652.9	476.6	630.6
EBITA profit	-10.8	-8.3	-4.6	33.5	35.9	65.2
EBITA margin, %	-6.3	-6.1	-2.8	5.1	7.5	10.3
Number of employees at the end of the period	602	482	545	602	482	545

1) Adjustment pertains to the acquisitions of Ascend and Ionic from July to September 2022.

2) Adjustment pertains to the acquisitions of Swedspot from January to May, Miracle ad Marketing Clinic from January to June,

and Ascend and Ionic from January to September 2022.

Financial overview by country FINANCIAL STATEMENTS

The table shows the profit/loss by quarter and period where comparative figures are shown to facilitate analysis.

SEK, MILLIONS	JUL-SEP 2023	JUL-SEP 2022	JAN-SEP 2023	JAN-SEP 2022	JAN-DEC 2022
Sweden
Net sales	660.3	663.6	2,354.6	2,304.5	3,210.4
EBITA	19.8	56.5	187.9	292.2	421.4
EBITA margin, %	3.0	8.5	8.0	12.7	13.1
Norway
Net sales	441.8	471.1	1,503.2	1,522.7	2,110.0
EBITA	29.9	31.3	120.3	143.6	204.5
EBITA margin, %	6.8	6.6	8.0	9.4	9.7
Denmark
Net sales	204.1	190.1	648.3	444.8	676.8
EBITA	17.8	10.4	42.0	33.4	44.4
EBITA margin, %	8.7	5.4	6.5	7.5	6.6
Finland
Net sales	170.6	137.9	570.3	428.2	614.1
EBITA	11.1	4.4	39.2	22.8	28.2
EBITA margin, %	6.5	3.2	6.9	5.3	4.6
Poland
Net sales	62.7	52.2	182.6	145.1	199.7
EBITA	9.5	6.9	21.2	16.1	22.3
EBITA margin, %	15.2	13.3	11.6	11.1	11.2

Definitions OTHER

Alternative performance measures

Knowit uses alternative performance measures, as we believe they are relevant for following up the long-term financial targets and to provide a fair view of Knowit's profit and financial position. For instance, the Board has determined that the Company should grow faster than the market, with the goal of an annual growth rate of around 15 percent over time, and that the EBITA margin should grow to 12 percent over time. Further, net liabilities relative to EBITDA should not exceed two multiples over time. We also monitor capital employed, as it is an important aspect of the working capital turnover. Knowit's alternative performance measures are EBITDA profit, EBITA profit, adjusted EBITA profit, EBITA margin, adjusted EBITA margin, net debt, average equity, return on equity, capital employed, and return on capital employed.

The calculations of alternative performance measures on this page pertain to the period January to September.

For more information on our long-term financial targets and further definitions of performance measures, see pages 12 and 110 in the Annual Report for 2022.

EBITDA PROFIT Profit before depreciation and amortization of tangible and intangible non-current assets, respectively. (348.6 + 134.8 = 483.4)

EBITA PROFIT Profit before amortization of intangible non-current assets. (348.6)

ADJUSTED EBITA PROFIT EBITA is adjusted for items that impair comparability between periods, to provide increased understanding of the Group's underlying operative activities. Adjusted items include costs connected to acquisitions and such as and costs for restructuring and integration programs.

This year's adjustments of SEK 1.2 million include acquisition costs totaling SEK 0.0 million which encompass expenses for legal and financial consultancy in connection with acquisition transactions. They also include adjustments of SEK 1.2 million for integration and restructuring expenses such as financial and legal consultancy regarding restructuring, project management of integrations, financing related to acquisitions, and tax expenses connected to internal disposal of acquired foreign operations. (348.6 + 1.2 = 349.8)

EBITA MARGIN Profit before amortization of intangible non-current assets (EBITA) in relation to net sales for the period. (348.6 / 5,273.4 = 6.6%)

ADJUSTED EBITA MARGIN Adjusted EBITA profit in relation to net sales for the period. (349.8 / 5,273.4 = 6.6%)

NET DEBT Interest-bearing liabilities less financial interestbearing assets. (1,049.6 + 183.8 – 101.9 = 1,131.5)

NET DEBT RATIO Used to show the Company's indebtedness. Net debt in relation to equity. (1,131.5 / 4,164.1 = 0.3 multiples)

AVERAGE EQUITY The average of the period's opening equity balance and the period's closing equity balance. ((4,207.7 + 4,164.1) / 2 = 4,185.9)

RETURN ON EQUITY Profit after full tax as a percentage of average equity including non-controlling interests. (150.3 / 4,185.9 = 3.6%)

AVERAGE CAPITAL EMPLOYED The average of the period's opening and closing balances of equity plus interest-bearing liabilities. ((4,207.7 + 1,303.3 + 291.4 + 4,164.1 + 1,049.6 + 183.8) / 2 = 5,600.0)

RETURN ON CAPITAL EMPLOYED Profit after financial items plus financial expenses expressed as a percentage of average capital employed. ((205.1 + 60.5) / 5,600.0 = 4.7%)