FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2024
===== SIDA 1 =====
Stable trend
kicks off the year
Interim report for Knowit AB
JANUARY – MARCH 2024
Net sales decreased by 10.4 percent to SEK 1,766.3 (1,970.5) million
The EBITA profit was SEK 136.3 (197 .2) million
The EBITA margin was 7 .7 (10.0) percent
Results after tax were SEK 64.0 (104.1) million
Earnings per share were SEK 2.23 (3.64) 1)
Cash flow from operating activities was SEK 101.6 (106.5) million
1) 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.
The information was made public through the agency of CEO and President Per Wallentin, at 07.30 CEST on May 3, 2024.
Interim report
===== SIDA 2 =====
2 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Comments from the CEO
In the business area Solutions, Knowit’s
largest business area, we are now seeing
improvements in parts of the opera -
tions, whereas our digitalization agency
Experience remains challenged by a weak
demand, in particular in Sweden. Our ma -
nagement consultancy operations Insight
are developing relatively well, although
the margin is not yet back at the level we
expect in the future.
An innovative digitalization
partner in the Nordic region
We are proud to be a strong partner to
Nordic companies and authorities, and our
clients are requesting more of our compe -
tence in AI. For instance, during the quarter,
we have delivered a solution to the Danish
unemployment insurance fund, where we
have developed a bespoke legal assistant
based on ChatGPT 4.0.
At the start of the year, we have also signed
new framework agreements with several
Swedish authorities, including the Swedish
Medical Products Agency and the Swedish
Food Agency, which further strengthen our
position in the public sector. In the current
economic climate, demand from the public
sector has weakened in general, which im -
pacts our entire industry. Through several
new agreements, and increased deliveries
to the defense industry, we are retaining a
strong foothold in this important sector.
Even if we are now seeing that the negative
development in utilization is leveling out, it
is too early to sound the all-clear. The mar -
Utilization levels out
on hesitant market
Just like at the end of last year, significant
differences can be seen between Knowit’s
different geographic markets. We are
benefited by our very solid position in
Norway, with multiple strategic agreements
with large companies that are driving their
digital development with the help of Knowit.
In Sweden, we are facing weaker demand
and greater hesitance among our clients.
However, we can seeing some positive
signals from clients in southern Sweden
and in parts of the public sector.
In total, net sales decreased by 10 percent
during the first quarter of the year, and the
EBIT A margin was 7.7 percent, driven by
weaker demand and a negative calendar
effect compared with the previous year. In
relation to the last quarter of 2023, when
the market situation was more comparable,
both net sales and EBIT A have leveled out.
Structural changes show results
Our work to create a more effective and
adapted organization has led to the
stabilization in utilization that we are now
seeing. We are generally succeeding well
with reallocating resources to segments or
clients where demand is high, and our in -
tense sales efforts are showing results. This
is seen in particular in the business area
Connectivity, which once again delivers a
strong quarter with improved margins.
ket situation remains uncertain and
we must continually work hard to optimize
operations and minimize costs. This be -
comes even more important in the areas
where we continue to see a downward
trend.
While economies in the Nordic region have
weakened over the last year, there is still a
large need among companies and organi -
zations to make use of the fast technology
development and shift to more sustainable
business models. Our employees continue
to have a close dialogue with clients and
we have a strong platform to work from
when the market situation improves again.
PER WALLENTIN
Chief Executive Officer and President
Knowit has started the year on a market that is significantly more challenging compared with that
in the first quarter last year. After an intense fall with a strong focus on structural changes to create
a more effective and adapted organization, we are now seeing a stabilization in utilization – a show
of strength given the current market conditions. Being a significant player in the fast technology
development happening here and now remains our top priority, while the work to increase our
competitiveness and strengthen our profitability is important to secure an even stronger position
when the market turns around.
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3 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Events during the quarter
January – March 2024
Knowit is one of four selected suppliers of consultancy services in a framework agreement with a
total value of SEK 610 million. The agreement encompasses THE SWEDISH MEDICAL PRODUCTS
AGENCY, THE GEOLOGICAL SURVEY OF SWEDEN, THE SWEDISH VETERINARY AGENCY, AND THE
SWEDISH FOOD AGENCY.
FREDRIK EKERHOVD , formerly Head of Knowit Experience, has been appointed as new Head of
Knowit Solutions, succeeding the former Head of the business area, ÅSA HOLMBERG, who has
chosen to leave Knowit. At the same time, KENNETH GVEIN was appointed as new Head of Knowit
Experience.
Knowit has met the requirements to become a MICROSOFT SOLUTIONS PARTNER for business
applications. Thus, Knowit is a partner in all areas, which together result in the status of MICRO -
SOFT CLOUD PARTNER.
TELENOR GROUP , a global brand with 160 million users in eight geographic markets, has chosen
Knowit as its exclusive partner for branding strategy and identity. The agreement is for three years,
with an option for another two years.
===== SIDA 4 =====
4 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
The quarter in brief
January – March 2024
The first quarter of the year has been characterized by a continued uncertainty on the market. Net
sales for the quarter were SEK 1,766.3 (1,970.5) million. Profit before amortization of intangible assets
(EBIT A) was SEK 136.3 (197.2) million. Exchange rate developments had a negative effect on net
sales totaling SEK -9.1 (11.4) million. As of the first quarter 2024, normal working hours are reported;
for the period, they totaled 486 (499).
Cash flow from operating activities was SEK 101.6 (106.5) million, where operating capital increased
to SEK 24.0 (-39.6) million, affected mainly by increased short-term liabilities.
The work to optimize the organization and reduce costs has continued during the first quarter.
Compared with the last quarter in 2023, costs for travel, conferences, and other costs have decreased
by around SEK 19 million. Restructuring costs for phase-out of employees has, during the quarter,
totaled around SEK 13 million. In total, around 70 employees have been asked to leave during the
first quarter, to adapt capacity to demand.
SEK, MILLIONS
January
– March 2024
January
– March 2023
Sales 1,766.3 1,970.5
Sales, change, % -10.4 6.0
of which is exchange rate effect, % -0.5 0.6
EBIT A 136.3 192.1
EBIT A margin, % 7.7 10.0
Cash flow from operating activities 101.6 106.5
Intangible assets 4,443.1 4,585.1
Number of employees at the end of the period 4,109 4,377
Normal working hours 486 499
Net sales, SEK, millions
Net sales, quarterly data
Rolling 12 months
Q1
22
1,695
Q2
22
1,645
Q3
22
1,521
Q4
22
1,972
Q1
23
1,971
Q2
23
1,759
Q3
23
1,544
Q4
23
1,824
5,496
7,109
6,893
Q1
24
1,766
Adjusted EBIT A profit, SEK, millions
Adjusted EBIT A profit, SEK, millions
Rolling 12 months
Q1
22
194
Q2
22
141
Q3
22
95
Q4
22
179
Q1
23
198
Q2
23
77
Q3
23
75
Q4
23
148
Q1
24
136
579
613
436
===== SIDA 5 =====
5 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Market and operations
5 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2023
Through our four business areas, Knowit
develops long-term sustainable and inno -
vative solutions with high value for clients
and society. The four business areas build
on the clients’ needs for support in different
parts of their organizations. The business
area Solutions usually collaborates with
companies’ operative and IT departments.
Experience’s usual client group encom -
passes 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.
Our society is characterized by the fast
developments in AI and the need to con -
nect innovation and sustainability through
digitalization. Further, cyberthreats are
expected to increase at the same time as
geopolitical factors in our surroundings are
causing large changes. Even in a time of
inflation, rising interest rates, and decrea -
sed consumption, Nordic companies are
asking for specialist competence in digitali -
zation, albeit with more caution in a weaker
economic climate.
At Knowit, we support companies, autho-
rities, and organizations in the digital
transformation. Our arena is the projects
we perform along with our clients, where
we can make a difference both today
and in the future. During the latest year,
generative AI has made broad inroads into
society, leading to developments in both
work methods and deliveries along with
clients and partners. At Knowit, we help
companies future-proof their operations
through our expertise in tech, digitalization,
leadership, design, and security. We work
from a Nordic perspective, through specia -
lized teams that make things happen along
with our clients.
Good spread across
different client industries
Knowit meets clients in many different
industries, where companies and organi-
zations 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 38 percent
of Knowit’s total net sales. Other signifi -
cant client sectors are Industry and Retail
and service companies, contributing 16
percent each, and Banking and finance,
contributing 11 percent.
Megatrends driving
the need for digitalization
Knowit’s mission is creating a sustainable future along with our clients by using our strategic, creative,
and technical competence. With a unique combination of competence in tech, design, communications,
and strategy, we develop innovative and sustainable solutions that contribute to a high business value
for our clients. Knowit’s agile work methods and client-tailored solutions have contributed to creating
a strong position on the Nordic consultancy market with a presence in Sweden, Norway, Finland,
Denmark, Poland, and a smaller operation in Germany.
Sales per business area,
January – March 2024
Solutions 56% (53)
Experience 19% (21)
Insight 13% (12)
Connectivity 12% (14)
56
19
13
12
Sales per client industry ,
January – March 2024
Public sector 38% (39)
Retail and service companies 16% (15)
Industry 16% (15)
Banking, finance and insurance 11% (10)
T elecommunications 7% (9)
Media, education and gaming 5% (4)
Energy 4% (4)
Other 3% (4)
34
5
7
11
16
16
38
Sales per country,
January – March 2024
Sweden 43 % (46)
Norway 28% (29)
Denmark 14 % (12)
Finland 12 % (10)
Poland 3 % (3)
Other 0 % (0)
28
43
3
12
14
===== SIDA 6 =====
6 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Market and operations
Aiming for a sustainable future
An important part of the ongoing digita -
lization is about having companies and
organizations accelerating the shift to a
sustainable society. Being a contributing
factor in this shift is high up on Knowit’s
strategic agenda.
Digitalization creates both possibilities
and risks for the climate and for society.
Knowit’s role, as a leading consultancy
company in the digitalization sector, is
therefore even more important from a
sustainability perspective. Aside from
identifying and managing our impact on
society and the environment, Knowit needs
to understand how society is changing
to better capture opportunities, manage
risks, and continue to develop our business
operations. Sustainable business means
creating long-term value for shareholders,
clients, and employees, as well as other
stakeholders.
A strong employer brand
regardless of market conditions
Knowit is a value-driven workplace that en -
courages employees to take a large portion
of the responsibility for their own and the
company’s development. The promise to
both clients, employees, and society at lar -
ge is to be “Makers of a sustainable future,”
creating commitment and the drive to take
on challenges and seize new opportunities.
Knowit’s ability to attract and engage
through a strong employer brand has
been recognized in several ways in recent
years. We are ranked highly among Nordic
workplaces and in 2023 we were one of
Sweden’s 100 most popular employers
among technology majors.
Financial outcome
The Group’s operations are organized so
that the corporate management team
primarily follows four business areas:
Solutions, Experience, Connectivity, and
Insight. T o promote collaboration between
segments, the Corporate Management
T eam decided in 2024 that the net sales
per segment shall include deductions for
internal direct costs. The margin for the
business areas is thus altered and the
comparison figures for 2023 have been
adjusted accordingly. No effect arises for
the Group’s margin. See page 22.
Net sales for the quarter for Solutions were
SEK 988.9 (1,062.9) million, for Experience
they were SEK 335.2 (412.2) million, for
Comments from the Head of Solutions
The actions taken during the fall have
had effect and we perceive the utilization
has stabilized somewhat during the first
quarter as well. We are working hard to
optimize our organization and allocate
resources to areas where demand is high.
Our efforts are having an effect, although
we have yet to see the first signs of a bro -
ad market recovery.
“Much like at the end of last year, we
are seeing large geographic differen-
ces, where our challenges are largest
on the Swedish market and, to some
extent, the Danish market. The market
situation in Norway and Finland is
more stable, which benefits our margin
development.”
Fredrik Ekerhovd, Head of Solutions
Experience
January
– March 2024
January
– March 2023
Sales, SEK, million 335.2 412.2
EBIT A, SEK, million 28.0 60.1
EBIT A margin, % 8.4 14.6
Number of employees 889 987
The business area Experience is one of
the leading digital agencies in the Nordic
region, with around 900 specialists at
the interface between technology and
communication, who take responsibility
for the entire digital customer experience.
In the client projects, which are staffed
with various specialist competences in
web and mobile technology, design, data
analysis, and marketing, Experience helps
companies and organizations achieve their
business-critical goals in marketing and sa -
les, which ultimately also drives improved
profitability for the clients.
Experience’s relationships to its clients
are typically a combination of short-term
project assignments and long-term part -
nerships. This might involve, for instance,
an increased need for a faster shift of sales
to e-commerce solutions, with a focus on
data-driven customer experiences and
increased sales. Experience has more
clients in the public sector, where they in
various ways contribute to creating better
and more accessible societal services for
individual citizens.
Connectivity they were SEK 219.4 (269.1)
million, and for Insight they were SEK 234.8
(233.4) million.
Profit before amortization of intangible
assets (EBIT A) for Solutions was SEK 82.7
(113.3) million, for Experience was SEK
28.0 (60.1) million, for Connectivity was
SEK 28.5 (34.8) million, and for Insight was
SEK 19.8 (26.6) million.
The EBIT A margin for Solutions was 8.4
(10.7) percent, for Experience was 8.4
(14.6) percent, for Connectivity was 13.0
(12.9) percent, and for Insight was 8.4
(11.4) percent.
Solutions
January
– March 2024
January
– March 2023
Sales, SEK, million 988.9 1,062.9
EBIT A, SEK, million 82.7 113.3
EBIT A margin, % 8.4 10.7
Number of employees 1,856 1,978
Solutions is Knowit’s largest business area,
with operations on all of Knowit’s markets
in the Nordic region and with smaller
operations in Germany. Around 1,900
consultants offer cutting-edge competen -
ce in all parts of the system development
process: from idea, architecture and
project governance, to programming,
implementation, testing, and security.
Innovation and bespoke system solutions
creates increased possibilities to ensure
that clients’ operations develop in step
with the latest technology and changing
business needs.
In the Nordic region, the business area
Solutions has the single largest share of
its clients in the public sector. Solutions
also supports larger companies in retail
and e-commerce with payment solutions
and AI solutions. In the telecom industry,
the business area Solutions has several
larger clients, with long-term relationships,
where they develop new system solu -
tions and are in charge of DevOps. Here,
deliveries are increasingly made through
agile teams. In banking and finance,
some clients are found among the more
niche players, challenging older business
models.
===== SIDA 7 =====
7 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Market and operations
Comments from the Head of Experience
After having implemented several actions
to improve utilization at the end of last year,
we are now seeing some stabilization, but
have yet to achieve an acceptable level.
The improvements we saw in Finland
toward the end of year remain, with a
positive result development, but we must
continue our work to achieve satisfactory
profitability in Sweden.
“Compared with the first quarter one
year ago, the market conditions have
changed significantly, which affects us
on all markets. We are pleased that our
actions to optimize the organization
and increase sales pressures are
showing results, but a lot of work
remains to ensure long-term growth
and high profitability.”
Kenneth Gvein, Head of Experience
Connectivity
January
– March 2024
January
– March 2023
Sales, SEK, million 219.4 269.1
EBIT A, SEK, million 28.5 34.8
EBIT A margin, % 13.0 12.9
Number of employees 717 774
Connectivity combines technical expertise
and business competence for innovative,
secure, and sustainable solutions in IT and
communication technology. The business
area is primarily active in product, system,
and service development of embedded
systems, cloud solutions, and security
applications.
The business area, with its around 700
consultants in Sweden and Poland, is a
leading supplier to clients in the telecom
industry, the vehicle industry, the manu -
facturing industry, and to research and
development departments.
Connectivity is specialized in development
of 5G technology, at the absolute cutting
edge of digitalization. The platform enab-
les usage of artificial intelligence (AI), the
internet of things (Io T), and extended rea-
lity (XR). Thus, it has potential to decrease
costs, energy usage, emissions and waste,
and to mitigate climate change.
Comments from the Head of Connectivity
Connectivity continues to develop well.
We are seeing increased mobility on the
Polish labor market, which lowers our
margin in Poland, whereas the margin in
Sweden has improved slightly. Our chal -
lenge lies in maneuvering a strong delive -
ry with a remaining uncertainty regarding
market developments. Our net sales are
decreasing as a result of a weaker market,
where we are now choosing to focus on
utilization rather than new recruitment.
“We deliver yet another strong result
in the quarter, which is of course very
gratifying. At the same time, uncerta-
inty remains in the market with low
visibility, which makes it difficult to
assess the future. We continue our
strong focus on sales and we have
so far been successful in compen -
sating completed projects with new
assignments.”
Lennart Waldenström, Head of Connectivity
Insight
January
– March 2024
January
– March 2023
Sales, SEK, million 234.8 233.4
EBIT A, SEK, million 19.8 26.6
EBIT A margin, % 8.4 11.4
Number of employees
at the end of the period 565 533
Specialists at Insight support their clients in
creating agile organizations and perfor -
ming digital transformations, from idea to
result. In close collaboration with the client,
they create methods and model based on
the client’s challenges and unique market
circumstances.
In recent years, the business area has
grown and now has more than 550
employees. Thus, Insight is an establis -
hed player on the Nordic management
consulting market. Primary offers include
data-driven growth, organization and stra -
tegy development, digital transformation,
security, e-health, and sourcing. Demand
for services in cybersecurity and defense
has been particularly high this year, driven
by increased global uncertainty.
Comments from the Head of Insight
On a competitive market, Insight is deliv -
ering a stable result, where our efforts to
decrease costs and increase efficiency
have shown results.
“The stabilization we saw towards the
end of last year has continued into the
first quarter of this year, in particular
in Sweden, where we are facing high
demand – in particular in defense and
cybersecurity, but now also in more
general management consultancy.
During the quarter, we have taken
actions to ensure a higher utilization in
Finland, which has affected the results
negatively, but is expected to have a
positive impact going forward.”
Carin Strindmark, Head of Insight
===== SIDA 8 =====
8 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Reference cases
current trends. Through an intuitive interfa-
ce, differentiation between input from Arla’s
editors and the output generated by the AI
robot is streamlined, improving Arla’s con-
tent strategy and production significantly.
Thanks to the implementation of AI, Arla
will be at the top of Google searches, and
a consumer searching for the best pizza
recipes should always get recipe sugges-
tions from Arla. With the new technology
in place, possibilities also increase for Arla
to help consumers choose ingredients by
season, encouraging more sustainable
meal choices.
Effective errand
management with ChatGPT
ChatGPT was the answer when
Magistrenes A-kasse (MA), the
Danish unemployment insurance
fund, explored how they could achieve
faster processes, improve response time to
members, ascertain that advice was high
quality, and reduce the risk of oversight by
caseworkers. With a tailored and secure
solution, the unemployment insurance
fund can now spend more time on other
member-focused activities.
Innovative assignments
that create long-term value
Arla Sverige has created an AI
solution that writes articles instantly
T ogether with Knowit,
the dairy company Arla
Sverige has built an AI-ba-
sed solution helping Arla to effectively adapt
its content strategy to quick shifts in food
trends and consumers’ search habits, which
are often based on broader topics than spe-
cific recipes. The new AI solution is entirely
trained on Arla’s own recipes and articles.
In Arla’s database, there are more than
6,000 original recipes and by implementing
Microsoft Azure OpenAI, Arla could create a
varied recipe bank, react faster to new food
trends, and expand the existing contents.
This also opened for possibilities to generate
more traffic by developing target-oriented
landing pages that maximize usage of the
recipe database.
T ogether with Arla, Knowit has built a
tailored solution, with a unique interface
that is adapted to Arla’s tonality. The solution
manages new recipes in Azure and uses
machine learning to suggest the most
relevant recipes based on the season and
Knowit and MA initially developed a proto -
type of a legal assistant based on ChatGPT
4.0, where users could log in and where it
was possible to update and supplement
legal materials, register responses, etc. The
prototype was developed further into a mi -
nimum viable product (MVP) – a 1.0 version
of the solution – which contained several
important key functions and which could
be used by caseworkers.
Development of the legal assistant required
equal parts system development and im -
plementation. The solution is tailored for MA,
the assistant is built to respond correctly
and only to questions in the unemployment
insurance area, with a tonality suited for the
purpose. T o ensure a high level of security,
the solution has been exposed to a number
of experts in the rule of law and legislation.
The legal assistant has been reviewed by
MA’s head of legal, to quality assure the re -
sults. The next step is to give MA’s members
the possibility to use the solution when they
are logged in to MA’s member portal.
Together with our clients, we create the digital solutions of the future,
for higher client value, and a sustainable societal development. Learn
about some of our clients’ challenges, solutions, and results.
===== SIDA 9 =====
9 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Reference cases
The municipality of Sollentuna takes the
step towards a more modern digital future
Around 76,000 people live in the
municipality of Sollentuna. The
municipality’s vision is to become
the most attractive municipality in Sweden,
where everyone feels safe. T o achieve this
vision, the municipality wanted to invest in
the service Säker digital kommunikation
([SDK], Secure digital communication).
The municipality needed to get an overview
of the preparatory work that was needed
to joining SDK and find a clear way forward
in its efforts. There was also interest in
expertise for evaluating digital services,
such as secure video meetings and secure
messaging. The municipality wanted a de -
tailed analysis of its conditions, needs, and
technical solutions – and wanted to get an
idea of the suppliers on the market.
Knowit has performed a thorough feasibi -
lity study and in-depth analysis of the muni -
cipality’s needs and technical conditions,
where the best possibilities for a successful
implementation of SDK were identified,
including an evaluation of digital services.
Knowit’s SDK experts assisted in explai -
ning and getting support for SDK among
the municipal executives, and in relevant
operations. In close collaboration with
the client, interviews were performed in
multiple parts of the organization, to ensure
that all aspects were taken into account.
Suppliers were invited to present their
solutions and a pilot project along with the
Swedish Police was initiated.
Knowit delivered an extensive analysis
of the current status and a clear and
well-supported plan for implementation of
SDK. Our consultants also gave recom -
mendations for continued collaboration
with suppliers and other municipalities.
Through this project, the municipality of
Sollentuna has equipped itself for a more
efficient and secure digital future, where
the needs of citizens are in focus. Joining
SDK means more secure processing of
personal data and sensitive information,
which both benefits society in general and
contributes to improvements in the munici -
pality’s social sustainability.
The tenants’ app
simplifies everyday life for tenants
Svenska
Bostäder
currently
has more than 28,000 apartments for rent,
with more than 50,000 tenants. In deve -
loping an app, Svenska Bostäder wanted
to simplify everyday life for its tenants and
increase the availability of the company’s
digital services. The app supplements
Svenska Bostäder’s existing website, but
also glows with “T enocracy,” a portmanteau
of the words T enant and Democracy, des-
cribing an initiative for increased influence
among tenants.
In the first version of the app, tenants can
book the laundry room, follow the news
flow, report issues, contact Svenska Bostä -
der with questions, and get push notifica -
tions. The app is built for Android and iOS
with React Native as its framework and
integrates several operative systems. Other
important criteria that the project has taken
into account are clear and high information
security requirements and that the app
has high accessibility, in accordance with
WCAG 2.1.
The project was performed in collabora -
tion with Knowit, where a dedicated team
worked close to Svenska Bostäder to
realize the vision of a tenants’ app. The de -
velopment used a clear agile development
method, with all the fora and processes
that the method includes – such as iterati -
ve design and development cycles, demos,
and a hands-on Scrum methodology.
This was adapted to Svenska Bostäder’s
circumstances in accordance with the
relevant requirements, and the result was
a work method that helped the project
through many difficult forks in the road.
An important component for the pro -
ject was a tight and close collaboration
between Knowit’s agile development team
and the team at Svenska Bostäder, which
decreased lead times and increased
transparency in both directions. The deve -
lopment was adapted continually, to meet
the high expectations of Svenska Bostäder.
At the end of the project, Knowit’s team se -
amlessly moved on to further development
and operations of the service.
The introduction of the app creates further
freedom of choice and accessibility for
Svenska Bostäder’s tenants in how they
choose to get important information and
how they choose to contact Svenska Bo -
städer. Through the app, Svenska Bostäder
can create better accessibility and service,
and thereby provide more equality in the
possibilities to have an impact on one’s
housing and housing situation. Develop -
ment of the app is also a way to promote
innovation and digitalization, and a facili -
tator in creating more sustainable towns
and societies using new offers and better
streamlining.
===== SIDA 10 =====
10 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
The Group
The Group
Stable start to the year
Net sales and profit
JANUARY – MARCH
Net sales were SEK 1,766.3 (1,970.5)
million, a decrease by 10.4 percent as
compared with the corresponding period
last year. The exchange rate development
of the year has had a negative impact on
net sales of SEK -9.1 (11.4) million.
Net sales were SEK 758.6 (892.4) million
in Sweden and SEK 488.8 (574.9) million
in Norway, increased to SEK 252.1 (235.4)
million in Denmark, to SEK 204.2 (200.4)
million in Finland, and were SEK 57.4 (62.1)
in Poland.
Sales per employee (based on the average
number) was KSEK 449 (471).
The operating profit before amortization
of intangible assets (EBIT A) decreased by
30.9 percent to SEK 136.3 (197.2) million.
The exchange rate development had a
negative impact on EBIT A of SEK -1.4 (-1.0)
million.
In Sweden, EBIT A was SEK 73.9 (113.8)
million, in Norway it was SEK 51.4 (66.9)
million, in Denmark it was SEK 11.8 (19.9)
million, in Finland it was SEK 14.4 (16.4)
million, and in Poland it was SEK 5.0 (7.5)
million. The EBIT A margin was 7.7 (10.0)
percent.
Amortization and write-downs of intangible
assets amounted to SEK -41.4 (-42.7)
million.
The operating profit after financial items
was SEK 82.2 (133.3) million. The financial
net was SEK -12.7 (-21.2) million, affected
mainly by interest revenue of SEK 3.1 (4.2)
million, interest costs of SEK -13.5 (-15.7)
million, and exchange rate changes.
The results after taxes were SEK 64.0
(104.1) million. T ax for the period was SEK
-18.2 (-29.2) million. Previous year's taxes
were affected by a correction for the pre -
vious year’s taxes of SEK -5.8 million. The
non-controlling interests’ share of profit for
the year was SEK 3.0 (4.3) million. Earnings
per share were SEK 2.23 (3.64).
Segments
JANUARY – MARCH
Net sales for the segment Solutions
were SEK 988.9 (1,062.9) million, for the
segment Experience they were SEK 335.2
(412.2) million, for the segment Connectivi -
ty they were SEK 219.4 (269.1) million, and
for the segment Insight they increased to
SEK 234.8 (233.4) million.
EBIT A was SEK 82.7 (113.3) million for the
segment Solutions, SEK 28.0 (60.1) million
for the segment Experience, SEK 28.5
(34.8) million for the segment Connec -
tivity, and SEK 19.8 (26.6) million for the
segment Insight.
The EBIT A margin was 8.4 (10.7) percent
for the segment Solutions, 8.4 (14.6) per -
cent for the segment Experience, increa -
sed to 13.0 (12.9) percent for the segment
Connectivity, and was 8.4 (11.4) percent
for the segment Insight.
The definitions for follow-up of segments
have changed. For more information, see
Note 4 on page 18.
Cash flow
JANUARY – MARCH
Cash flow from operating activities was
SEK 101.6 (106.5) million. The change
in working capital was SEK 24.0 (-39.6)
million, affected mainly by increased short-
term liabilities.
Cash flow from investment activities
amounted to SEK -4.2 (-21.8) million, affec -
ted by investments in fixed assets.
Cash flow from financing activities was SEK
-36.9 (-138.7) million, affected by amorti -
zations.
T otal cash flow was SEK -60.5 (-54.0)
million.
Financial position
JANUARY – MARCH
Cash and cash equivalents were SEK
193.4 (444.6) million as per March 31,
2024. Goodwill and other intangible were
SEK 4,443.1 (4,585.1) million, of which
goodwill was SEK 3,773.0 (3,747.1) million,
and other intangible assets were SEK
670.1 (838.0) million.
Equity increased to SEK 4,290.8 (4,283.7)
million. Interest-bearing liabilities totaled
SEK 1,077.5 (1,482.1) million on March
31, 2024, with long-term liabilities totaling
SEK 916.8 (1,184.7) million and short-term
liabilities totaling SEK 160.7 (297.4) 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 March 31, 2024, SEK 500.0 (600.0)
million of the credit facilities granted were
used. Leasing liabilities were SEK 528.7
(629.2) million. Liabilities related to future
consideration in subsidiaries totaled SEK
40.5 (252.9) million.
The equity/asset ratio increased to 59.6
(56.8) percent as per March 31, 2024.
Employees
JANUARY – MARCH
On March 31, 2024, a total of 4,109
(4,377) people were employed by the
Group. During 2024, the number of
employees has decreased by 156 people
compared with December 31, 2023.
The average number of employees has
during the period decreased to 3,935
(4,182). The average number of employees
in Sweden decreased to 1,908 (2,073),
in Norway decreased to 977 (1,012), in
Finland increased to 477 (475), in Poland
decreased to 284 (312), and in Denmark
decreased to 278 (291).
===== SIDA 11 =====
11 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
The Group
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 negative -
ly, 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.
During the period, normal working hours
totaled 486 (499) hours.
Forward-looking
information
The forward-looking information in this
report is based on the expectations of
Knowit’s management team at the time of
the report. Although 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 forward-looking
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 forward-looking
information beyond what is required by law.
Certification
The Chief Executive Officer certifies that
the Interim Report provides a true and fair
view of the Group’s and Parent Company’s
operations, financial position and results,
and describes significant risks and uncer -
tainty factors that the Parent Company and
the companies within the Group are faced
with.
STOCKHOLM MA Y 3, 2024
PER WALLENTIN
Chief Executive Officer
This interim report has not been reviewed
by Knowit’s auditors.
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 Svenska Dagbladet, and
published on Knowit’s website.
Financial calendar
AGM 2024
May 3, 2024, 1.00 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 INFORMA TION
Per Wallentin, President and CEO, Knowit
AB (publ), +46 (0)8 700 66 00 or
Christina Johansson, Head of Communica -
tions, 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 bespo -
ke system development, digital customer
experiences, the internet of things, cloud,
cybersecurity, and management consul -
tancy. Competences from several business
areas are often combined in client projects.
Knowit was founded in 1990 and now has
around 4,100 employees, mainly in the
Nordic countries, but also in operations in
Poland and Germany. 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.
===== SIDA 12 =====
12 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
The Group
Financial statements
Income statement in summary
SEK, MILLIONS Note
January
– March 2024
January
– March 2023
January
– December
2023
April 2023
– March 2024
Net sales 3, 4 1,766.3 1,970.5 7,097.4 6,893.2
Other operating income – – 16.4 16.4
TOT AL OPERA TING INCOME 1,766.3 1,970.5 7,113.8 6,909.6
Operating costs -1,586.2 -1,727.5 -6,439.4 -6,298.0
Depreciation and write-downs of tangible fixed assets -43.9 -45.8 -178.1 -176.2
OPERA TING RESUL T BEFORE AMORTIZA TION
OF INT ANGIBLE ASSETS (EBIT A) 136.3 197.2 496.3 435.4
Amortization and write-downs of intangible fixed assets -41.4 -42.7 -186.5 -185.2
OPERA TING RESUL T (EBIT) 94.8 154.5 309.8 250.1
Result from financial items
Financial incomes 3.6 4.2 76.1 75.5
Financial expenses -16.3 -25.4 -81.8 -72.7
RESUL T AFTER FINANCIAL ITEMS 82.2 133.3 304.1 253.0
Ta x -18.2 -29.2 -62.3 -51.3
RESUL T FOR THE PERIOD 64.0 104.1 241.8 201.7
Result for the period attributable to shareholders in Parent Company 61.0 99.8 239.6 200.8
Result for the period attributable to non-controlling interests’ holdings 3.0 4.3 2.2 0.9
Earnings per share
Earnings per share, before dilution, SEK 2.23 3.64 8.74 8.46
Earnings per share, after dilution, SEK 2.23 3.64 8.74 8.46
Comprehensive income in summary
SEK, MILLIONS Note
January
– March 2024
January
– March 2023
January
– December
2023
April 2023
– March 2024
Profit for the period 64.0 104.1 241.8 201.7
Items that may later be reclassified to profit or loss:
result of hedging of interest risks 5.7 – -14.1 -8.4
tax effect of hedging of interest risks -1.2 – 2.9 1.7
translation differences in foreign operations 56.9 -28.1 ¹ ) -46.8 38.2
OTHER COMPREHENSIVE INCOME FOR THE PERIOD, NET OF T AX 61.4 -28.1 -58.0 31.5
TOT AL COMPREHENSIVE INCOME FOR THE PERIOD 125.4 76.0 183.8 233.2
T otal comprehensive income attributable to shareholders in Parent Company 122.5 72.6 181.9 231.8
T otal comprehensive income attributable to non-controlling interests’ holdings 2.9 3.4 1.9 1.4
1) Reclassification has been performed of extended net investments, which have been moved to T ranslation differences in foreign operations.
Comparison figures have been adjusted.
===== SIDA 13 =====
13 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
The Group
Balance sheet in summary
SEK, MILLIONS Note
March 31
2024
March 31
2023
December 31
2023
ASSETS
Non-current assets
Intangible fixed assets 4,443.1 4,585.1 4,438.0
T angible fixed assets 605.2 717.1 619.1
Financial fixed assets 3.8 10.3 7.2
Deferred tax asset 101.7 108.1 99.8
TOT AL NON-CURRENT ASSETS 5,153.8 5,420.6 5,164.1
Current assets
Current receivables 1,847.1 1,682.6 1,734.4
Cash and cash equivalents 193.4 444.6 127.6
TOT AL CURRENT ASSETS 2,040.5 2,127.2 1,862.0
TOTAL ASSETS 7,194.3 7,547.8 7,026.1
EQUITY AND LIABILITIES
Equity
Share capital 6 27.4 27.4 27.4
Other capital contributions and reserves 2,981.1 2,945.1 2,918.3
Profit brought forward, incl. total result 1,264.5 1,286.6 1,205.3
EQUITY A TTRIBUT ABLE TO SHAREHOLDERS OF THE PARENT COMPANY 4,273.0 4,259.1 4,151.0
Non-controlling interests 17.8 24.6 14.7
TOT AL EQUITY 4,290.8 4,283.7 4,165.7
Non-current liabilities
Non-current provisions 235.9 269.2 238.8
Interest-bearing non-current liabilities 916.8 1,184.7 936.1
TOT AL NON-CURRENT LIABILITIES 1,152.7 1,453.9 1,174.9
Current liabilities
Interest-bearing current liabilities 160.7 297.4 159.6
Other short-term liabilities 1,590.1 1,512.8 1,525.9
TOT AL CURRENT LIABILITIES 1,750.8 1,810.2 1,685.5
TOT AL EQUITY AND LIABILITIES 7,194.3 7,547.8 7,026.1
===== SIDA 14 =====
14 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
The Group
Cash flow statement in summary
SEK, MILLIONS Note
January
– March 2024
January
– March 2023
January
– December
2023
Operating activities
Profit before taxes 82.2 133.3 304.1
Adjustment for non-cash items 64.1 63.5 274.8
Paid taxes -68.7 -50.7 -65.1
CASH FLOW BEFORE CHANGES IN WORKING CAPIT AL 77.6 146.1 513.8
Changes in working capital 24.0 -39.6 -114.0
CASH FLOW FROM OPERA TING ACTIVITIES 101.6 106.5 399.8
Investing activities
Acquisition of businesses – – -157.9
Disposals of businesses – – -2.2
Acquisition on intangible assets -0.9 -3.7 -12.6
Acquisition of property, plant and equipment -3.3 -18.1 -34.8
CASH FLOW FROM INVESTING ACTIVITIES -4.2 -21.8 -207.5
Financing activities
Amortization of loans and leasing liabilities -36.9 -138.7 -449.1
Loans raised – – 100.0
Dividend – – -217.8
Repurchasing of own shares – – -8.8
CASH FLOW FROM FINANCING ACTIVITIES -36.9 -138.7 -575.7
CASH FLOW FOR THE PERIOD 60.5 -54.0 -383.4
Cash and cash equivalents at the beginning of the period 127.6 497.7 497.7
T ranslation differences in cash and cash equivalents 5.3 0.9 13.3
CASH AND CASH EQUIVALENTS A T THE END OF THE PERIOD 193.4 444.6 127.6
Statement of changes in equity in summary
SEK, MILLIONS Note
March 31
2024
March 31
2023
December 31
2023
Opening balance 4,165.7 4,207.7 4,207.7
PROFIT FOR THE YEAR RECOGNIZED IN THE INCOME ST A TEMENT 64.0 104.1 241.8
Other comprehensive income
Result of hedging of interest rate risk 5.7 – -14.1
T ax effect of hedging of interest rate risk -1.2 – 2.9
T ranslation differences 56.9 -28.1 1) -46.8
TOT AL OTHER COMPREHENSIVE INCOME 125.4 76.0 183.8
TOT AL COMPREHENSIVE INCOME 4,291.1 4,283.7 4,391.5
T ransactions with shareholders
Dividend paid – – -217.8
Repurchase of own shares – – -8.8
Share-based payments 0.9 – 1.4
Change in liabilities, acquisition of non-controlling interest 2 ) -1.2 – -4.6
New share issue, company acquisition – – 4.0
TOT AL TRANSACTIONS WITH SHAREHOLDERS -0.3 – -225.8
EQUITY, DECEMBER 31, 2023 4,290.8 4,283.7 4,165.7
1) Reclassification has been made of extended net investments which have been moved to T ranslation differences in foreign operations.
The comparison figures have been adjusted.
2) Pertains to changed assessment of agreed future dividends.
===== SIDA 15 =====
15 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
The Parent Company
The Parent Company
January – March
The operating profit before amortization
of intangible assets (EBIT A) was SEK -23.3
(-27.5) million. The financial net was SEK
-24.8 (-7.0) million. The result after financial
net was SEK -48.8 (-35.8) million. Equity
was SEK 2,774.3 (2,946.3) million on Mar -
ch 31, 2024. Untaxed reserves, primarily
tax allocation reserves, increased to SEK
169.7 (159.6) million.
Income statement in summary
SEK, MILLIONS
January
– March 2024
January
– March 2023
January
– December
2023
Net sales 137.6 197.2 670.1
TOT AL OPERA TING INCOME 137.6 197.2 670.1
Operating expenses -158.8 -222.9 -763.2
Depreciation of property, plant and equipment -2.1 -1.8 -7.9
OPERA TING RESUL T BEFORE AMORTIZA TION
OF INT ANGIBLE ASSETS (EBIT A) -23.3 -27.5 -101.0
Amortization of intangible assets -0.7 -1.3 -4.7
OPERA TING RESUL T (EBIT) -24.0 -28.8 -105.7
Financial items -24.8 -7.0 188.7
RESUL T AFTER FINANCIAL ITEMS -48.8 -35.8 83.0
Appropriations – – -10.1
Income tax – – -19.6
RESUL T FOR THE PERIOD -48.8 -35.8 53.3
Balance sheet in summary
SEK, MILLIONS
January
– March 2024
January
– March 2023
January
– December
2023
ASSETS
Non-current assets
Intangible assets 4.6 8.7 5.3
Property, plant, and equipment 30.8 42.0 32.6
Financial non-current assets 4,402.9 5,105.6 4,402.4
TOT AL NON-CURRENT ASSETS 4,483.3 5,156.3 4,440.3
Current assets
Current receivables 414.2 654.6 437.4
Cash and cash equivalents – 289.4 –
TOT AL CURRENT ASSETS 414.2 944.0 437.4
TOTAL ASSETS 4,852.5 6,100.3 4,877.7
EQUITY AND LIABILITIES
Equity
Restricted equity 95.4 95.4 95.4
Non-restricted equity 2,678.9 2,850.9 2,726.8
TOT AL EQUITY 2,774.3 2,946.3 2,822.2
Untaxed reserves 169.7 159.6 169.7
Interest-bearing long-term liabilities – 600.0 –
Non-current provisions 18.4 86.7 18.4
Current liabilities 1,890.1 2,307.7 1,867.4
TOT AL EQUITY AND LIABILITIES 4,852.5 6,100.3 4,877.7
===== SIDA 16 =====
16 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Supplementary information and notes
Supplementary
information and notes
NOTE 1 : Accounting principles
This consolidated Interim Report for the
Group has been prepared in accordance
with IAS 34 Interim Reporting and appli-
cable provisions in the Annual Accounts
Act. The Interim Report for the Parent Com -
pany has been prepared in accordance
with Chapter 9 of the Annual Accounts Act
on interim reporting.
For the Group and the Parent Compa -
ny, the same accounting principles and
grounds for assessments used in the latest
Annual Report were used, in addition to
the aforementioned accounting principles.
Information in accordance with IAS 34.16A
is presented through the financial reports
and associated notes, see pages 16–20, as
well as in other parts of the Interim Report.
All amounts in this report are given in SEK
millions, unless otherwise stated. Rounding
differences may occur.
NOTE 2 : Critical valuation and risk factors
Knowit’s general essential business risks
consist of reduced demand for consul -
tancy 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
subsidiary to quickly realize short-term
measures for sales efforts and cost savings.
This can in the short term affect the Com -
pany’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 2023, pages
54–57 and 75–76.
===== SIDA 17 =====
17 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Supplementary information and notes
NOTE 3 : The Group revenue from client contracts
SEK, MILLIONS
January
– March 2024
January
– March 2023
January
– December
2023
GEOGRAPHIC CA TEGORIZA TION
Fee revenue
Sweden 727.0 828.6 2,929.1
Norway 476.8 561.5 1,946.5
Denmark 188.1 207.3 758.0
Finland 201.9 192.5 744.7
Poland 54.0 61.1 238.0
Other 5.3 5.2 19.0
TOT AL FEE REVENUE 1,653.1 1,856.2 6,635.4
Other revenue 1 )
Sweden 31.6 63.8 232.8
Norway 12.0 13.5 57.9
Denmark 64.0 28.2 132.7
Finland 2.3 7.9 34.2
Poland 3.4 1.0 4.5
Other 0.0 0.0 0.0
TOT AL OTHER REVENUE 113.2 114.3 462.0
TOT AL NET SALES 1,766.3 1,970.5 7,097.4
SEK, MILLIONS
January
– March 2024
January
– March 2023
January
– December
2023
SEGMENT CA TEGORIZA TION 2 )
Fee revenue
Solutions 907.4 1,008.1 3,622.3
Experience 319.2 391.4 1,354.3
Connectivity 206.5 230.2 838.2
Insight 225.9 227.9 834.3
Other -5.9 -1.5 -13.7
TOT AL FEE REVENUE 1,653.1 1,856.2 6,635.4
Other revenue 1 )
Solutions 81.6 54.8 241.7
Experience 16.0 20.8 85.3
Connectivity 12.8 38.9 136.9
Insight 8.9 5.6 24.6
Other -6.1 -5.8 -26.5
TOT AL OTHER REVENUE 113.2 114.3 462.0
TOT AL NET SALES 1,766.3 1,970.5 7,097.4
1) The revenue category License revenue is reported in the category Other revenue, as the sums are not significant. For more information, see Note 1 Accounting and valuation
principles on page 71–74 in the Annual Report 2023.
2) Knowit has performed two smaller organizational changes, which means that on October 1, 2023, an operation previously included in the segment Insight has moved to the segment Solutions,
and on January 1, 2024, an operation that was formerly included in the segment Other was moved to the segment Solutions. The comparison periods have been altered
to reflect the new segmentation.
===== SIDA 18 =====
18 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Supplementary information and notes
NOTE 4 : Consolidated segment reporting
January – March 2024 SEK, MILLIONS Solutions Experience Connectivity Insight Other To t a l
External net sales 962.0 345.8 221.2 234.8 2.6 1,766.3
Net sales between segments 63.3 19.8 5.3 12.1 -100.4 –
Internal direct costs between segments -36.3 -30.3 -7.1 -12.1 85.8 –
NET SALES 988.9 335.2 219.4 234.8 -12.0 1,766.3
Earnings before amortization of intangible assets (EBIT A) 82.7 28.0 28.5 19.8 -22.7 136.3
Amortization of intangible assets -19.0 -4.9 -10.8 -6.0 -0.7 -41.4
OPERA TING PROFIT (EBIT) 63.7 23.1 17.7 13.8 -23.5 94.8
Result after financial items 82.2
RESUL T FOR THE PERIOD 64.0
EBIT A margin, % 8.4 8.4 13.0 8.4 7.7
Average number of employees 1,796 831 682 548 78 3,935
Intangible assets 2,071.2 712.3 1,134.7 519.4 5.5 4,443.1
T angible fixed assets 16.7 3.6 8.7 2.5 573.7 605.2
January – March 2023 SEK, MILLIONS Solutions 1 ) Experience Connectivity Insight 1 ) Other 1 ) To t a l
External net sales 1,039.1 417.5 267.5 229.6 16.9 1,970.5
Net sales between segments 60.5 29.5 9.8 13.0 -112.9 –
Internal direct costs between segments -36.7 -34.8 -8.2 -9.2 88.8 –
NET SALES 1,062.9 412.2 269.1 233.4 -7.2 1,970.5
Earnings before amortization of intangible assets (EBIT A) 113.3 60.1 34.8 26.6 -37.6 197.2
Amortization of intangible assets -17.8 -6.5 -10.6 -6.0 -1.8 -42.7
OPERA TING PROFIT (EBIT) 95.5 53.6 24.2 20.6 -39.4 154.5
Result after financial items 133.3
RESUL T FOR THE PERIOD 104.1
EBIT A margin, % 10.7 14.6 12.9 11.4 10.0
Average number of employees 1,914 938 724 512 94 4,182
Intangible assets 2,135.5 731.7 1,168.9 538.0 11.0 4,585.1
T angible fixed assets 19.4 4.5 11.7 4.1 677.5 717.1
1) Knowit has performed two smaller organizational changes, which means that on October 1, 2023, an operation previously included in the segment Insight has moved to the segment Solutions,
and on January 1, 2024, an operation that was formerly included in the segment Other was moved to the segment Solutions. The comparison periods have been altered to reflect the new segmentation.
The Group’s operations are organized so
that the corporate management mainly
follows up net sales, EBIT A result, EBIT A
margin, intangible assets, and average
number of employees in the Group’s
five segments. T o promote collaboration
between segments, the Corporate Mana -
gement T eam decided in 2024 that the net
sales per segment shall include deductions
for internal direct costs. The margin for
the business areas is thus altered and the
comparison figures for 2023 have been
adjusted accordingly. There is no effect on
the Group’s margin.
The segment Other includes, among other
things, small-scale cloud services, where
Knowit through partnerships can offer
the cloud supplier that best fits the client’s
specific needs and IT structure. Further, it
includes the parent companies' group-wi -
de costs regarding management, finance,
and marketing and adjustments pertaining
to IFRS 16 that are not allocated to the
segments.
===== SIDA 19 =====
19 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Supplementary information and notes
NOT 5 : The Group’s financial assets and liabilities
March 31, 2024 March 31, 2023
SEK, MILLIONS
Financial
assets valued
at amortized
cost
Financial
assets valued
at fair value
in income
statement
Fair value
hedging
instruments
Fair
value
Financial
assets valued
at amortized
cost
Financial
assets valued
at fair value
in income
statement
Fair value
hedging
instruments
Fair
value
Assets in balance sheet
Other long-term securities 1 ) – 3.8 – 3.8 – 2.6 – 2.6
Other long-term receivables 0.1 – – 0.1 3.3 – – 3.3
Accounts receivable
and other receivables 1,618.2 – – 1,618.2 1,450.6 – – 1,450.6
Cash and cash equivalents 193.4 – – 193.4 444.6 – – 444.6
TOTAL 1,811.8 3.8 – 1,815.6 1,898.5 2.6 – 1,901.1
March 31, 2024 March 31, 2023
SEK, MILLIONS
Other
financial
liabilities
Financial
liabilities valued
at fair value in
income
statement
Fair value
hedging
instruments
Fair
value
Other
financial
liabilities
Financial
liabilities valued
at fair value in
income
statement
Fair value
hedging
instruments
Fair
value
Liabilities in balance sheet
Future additional considerations 2 ) – 14.7 – 14.7 – 199.0 – 199.0
Future consideration 25.8 – – 25.8 53.9 – – 53.9
Other interest-bearing liabilities 1,028.7 – – 1,028.7 1,229.2 – – 1,229.2
Accounts payable 492.5 – – 492.5 382.4 – – 382.4
Interest swaps for hedging 1 ) – – 8.4 8.4 – – – –
Other liabilities 62.5 – – 62.5 57.3 – – 57.3
TOTAL 1,609.5 14.7 8.4 1,632.6 1,722.8 199.0 – 1,921.8
1) Fair value pursuant to categorization level 2.
2) Fair value pursuant to categorization level 3.
SEK, MILLIONS
Future
contingent
additional
considerations 1 )
Future
considerations 2 )
Fair value, January 1, 2024 14.7 24.7
T otal recognized profits and losses:
recognized in profit/loss for the year – –
recognized in equity – 1.1
Settlement of future additional considerations, options and future consideration – –
Cost of acquisitions – –
FAIR VALUE, MARCH 31, 2024 14.7 25.8
Fair value, January 1, 2023 196.4 54.4
T otal recognized profits and losses:
recognized in profit/loss for the year 2.6 -0.5
recognized in equity – –
Settlement of future additional considerations, options and future consideration – –
Cost of acquisitions – –
FAIR VALUE, MARCH 31, 2023 199.0 53.9
1) Fair value pursuant to categorization level 3.
2) Valued at amortized cost.
The table below summarizes the reported
value of the Group’s financial assets and
liabilities, divided in accordance with the
valuation categories in IFRS 9. No financial
assets or liabilities are reported at a value
that significantly deviates from fair value.
For more information, see Note 21 in the
Annual Report 2023.
In the table below, a check of the opening
and closing balances is presented.
===== SIDA 20 =====
20 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Supplementary information and notes
NOTE 7 : T ransactions with related parties
No significant transactions have occurred
during the period. For more information,
see Note 28 T ransactions with related par-
ties, page 99 in the Annual Report 2023.
NOTE 6 : Data per share
SEK, MILLIONS
January
– March 2024
January
– March 2023
January
– December
2023
Profit for the year attributable to the Parent Company's shareholders, SEK, millions 61.0 99.8 239.6
Average number of outstanding shares, 000s:
before dilution 27,349 27,409 27,402
after dilution 27,349 27,409 27,402
Earnings per share, SEK:
before dilution 2.23 3.64 8.74
after dilution 2.23 3.64 8.74
Equity per share, SEK:
before dilution 156.24 155.39 151.78
after dilution 156.24 155.39 151.78
Number of shares on balance sheet day, 000s:
before dilution 27,349 27,409 27,349
after dilution 27,349 27,409 27,349
On May 3, 2023, the Annual General
Meeting authorized the Board to deci -
de on a repurchasing program for own
shares, to cover its undertakings within
the framework of the long-term incentive
program (L TIP) 2023. Repurchasing of a
maximum of 137,423 shares can occur on
one or more occasions before the Annual
General Meeting 2024. During the fourth
quarter 2023, 60,000 own shares were
repurchased.
NOTE 8 : Events after the end of the financial period
Knowit has gained information that the
Swedish Agency for Economic and Re -
gional Growth is considering requesting
repayment of a large part of the support
for short-time work that the Group and its
acquired units were granted during 2020,
in connection with the COVID-19 pande -
mic. The estimated amount in question is
around SEK 28 million. Knowit does not
share the views of the Swedish Agency for
Economic and Regional Growth and in -
tends to deny their request. Final judgment
has not been made at the time of presen -
ting this report.
===== SIDA 21 =====
21 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Financial position
Financial position
Performance measures
SEK, MILLIONS
January
– March 2024
January
– March 2023
January
– December
2023
Number of employees at end of period 4,109 4,377 4,265
Average number of employees 3,935 4,182 4,115
Normal working time, hours 486 499 1,940
Sales per average number of employees, SEK, 000s 449 471 1,725
Result after financial items per average number of employees, SEK, 000s 21 32 74
EBIT A margin, % 7.7 10.0 7.0
Adjusted EBIT A margin, % 7.7 10.1 7.0
Return on total capital, % 1.4 2.1 5.3
Return on equity, % 1.5 2.5 5.8
Return on capital employed, % 1.9 2.7 7.0
Equity ratio, % 59.6 56.8 59.3
Net debt ratio, multiples 0.2 0.2 0.2
===== SIDA 22 =====
22 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Financial position
Overview per business area
The table shows the outcome per quarter
and period, with comparison figures pre -
sented to facilitate analysis.
T o promote collaboration between seg-
ments, the Corporate Management T eam
decided in 2024 that the net sales per seg -
ment shall include deductions for internal
direct costs.
The margin for the business areas is thus
altered and the comparison figures for
2023 have been adjusted accordingly.
SEK, MILLIONS
January
– March 2024
January
– March 2023
April
–June 2023
July
– September
2023
October
– December
2023
January
– December
2023
April 2023
– March 2024
THE GROUP
Net sales 1,766.3 1,970.5 1,758.8 1,544.1 1,824.0 7,097.4 6,876.8
EBIT A profit 136.3 197.2 76.6 74.8 147.7 496.3 435.4
EBIT A margin, % 7.7 10.0 4.4 4.9 8.1 7.0 6.3
Number of employees at the end of the period 4,109 4,377 4,347 4,383 4,265 4,265 4,109
BUSINESS AREAS 1 )
Solutions
Net sales 988.9 1,062.9 936.3 861.5 1,003.2 3,864.0 3,789.9
EBIT A profit 82.7 113.3 46.5 63.2 91.9 314.9 284.3
EBIT A margin, % 8.4 10.7 5.0 7.3 9.2 8.2 7.5
Number of employees at the end of the period 1,856 1,978 1,961 1,953 1,923 1,923 1,856
Experience
Net sales 335.2 412.2 366.4 306.3 354.8 1,439.6 1,362.7
EBIT A profit 28.0 60.1 20.1 7.4 29.0 116.6 84.5
EBIT A margin, % 8.4 14.6 5.5 2.4 8.2 8.1 6.2
Number of employees at the end of the period 889 987 975 979 937 937 889
Connectivity
Net sales 219.4 269.1 236.2 225.8 244.0 975.1 925.4
EBIT A profit 28.5 34.8 19.3 26.2 31.0 111.2 105.0
EBIT A margin, % 13.0 12.9 8.2 11.6 12.7 11.4 11.3
Number of employees at the end of the period 717 774 764 763 739 739 717
Insight
Net sales 234.8 233.4 226.1 162.2 237.1 858.7 860.2
EBIT A profit 19.8 26.6 19.0 -10.4 22.2 57.4 50.6
EBIT A margin, % 8.4 11.4 8.4 -6.4 9.4 6.7 5.9
Number of employees at the end of the period 565 533 542 594 578 578 565
1) On October 1, 2023, Knowit performed a small organizational change, which means that an operation previously included in the segment Insight has moved to the segment Solutions, and on
January 1, 2024, an operation that was formerly included in the segment Other was moved to the segment Solutions. The comparison periods have been altered to reflect the new segmentation.
===== SIDA 23 =====
23 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Financial position
Overview per country
The table shows the outcome per quarter
and period, with comparison figures pre -
sented to facilitate analysis.
SEK, MILLIONS
January
– March 2024
January
– March 2023
January
– December
2023
April 2023
– March 2024
Sweden
Net sales 758.6 892.4 3,161.9 3,028.1
EBIT A 73.9 113.8 270.0 230.1
EBIT A margin, % 9.7 12.8 8.5 7.6
Norway
Net sales 488.8 574.9 2,004.4 1,918.1
EBIT A 51.4 66.9 164.9 149.3
EBIT A margin, % 10.5 11.6 8.2 7.8
Denmark
Net sales 252.1 235.4 890.7 907.3
EBIT A 11.8 19.9 59.2 51.1
EBIT A margin, % 4.8 8.5 6.6 5.6
Finland
Net sales 204.2 200.4 778.9 782.7
EBIT A 14.4 16.4 56.7 54.7
EBIT A margin, % 7.1 8.2 7.3 7.0
Poland
Net sales 57.4 62.1 242.5 237.7
EBIT A 5.0 7.5 28.7 26.2
EBIT A margin, % 8.7 12.1 11.8 11.0
===== SIDA 24 =====
24 KNOWIT AB INTERIM REPORT JANUARY – MARCH 2024
Definitions
Definitions
Alternative performance measures
Knowit uses alternative performance me -
asures, 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 EBIT A
margin should grow to 12 percent over
time. Further, net liabilities relative to EBIT -
DA 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 perfor -
mance measures are adjusted EBIT A mar-
gin, adjusted EBIT A profit, average capital
employed and equity, EBIT A margin, EBIT A
profit, EBITDA profit, net debt ratio, net sales
per segment, return on equity, and return
on capital employed.
The calculations of alternative performan -
ce measures on this page pertain to the
period January to March 2024.
For more information on our long-term
financial targets and further definitions of
performance measures, see page 110 in
the Annual Report for 2023.
Adjusted EBIT A margin
Adjusted EBIT A profit in relation to net sales
for the period. (136.3 / 1,766.3 = 7.7%)
Adjusted EBIT A profit
EBIT A 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 acquisi -
tions and such as and costs for restruc-
turing and integration programs. For 2024,
no adjustments have been made.
Average capital employed
The average of the period’s opening and
closing balances of equity plus interest-be -
aring liabilities. ((4,165.7 + 936.1 + 159.6 +
4,290.8 + 916.8 + 160.7) / 2 = 5,314.9)
Average equity
The average of the period’s opening equity
balance and the period’s closing equity
balance. ((4,165.7 + 4,290.8) / 2 = 4,228.3)
EBIT A margin
Profit before amortization of intangible
non-current assets (EBIT A) in relation to net
sales for the period.
(136.3 / 1,766.3 = 7.7%)
EBIT A profit
Profit before amortization of intangible
non-current assets. (136.3)
EBITDA profit
Profit before depreciation and amortization
of tangible and intangible non-current as -
sets, respectively. (136.3 + 43.9 = 180.2)
Net debt
Interest-bearing liabilities less financial
interest-bearing assets less cash and cash
equivalents.
(916.8 + 160.7 – 193.4 = 884.1)
Net debt ratio
Used to show the Company’s indebted -
ness. Net debt in relation to equity.
(884.1 / 4,290.8 = 0.2 multiples)
Net sales per segment
T o promote collaboration between
segments, the Corporate Management
T eam decided in 2024 that net sales for
segments would include deductions for
internal direct costs.
Normal working hours
The number of hours an employee
working full-time is expected to work. Nor-
mal working hours are weighted, meaning
that account is taken of the fact that diffe-
rences may occur between countries, legal
entities, contracts, etc.
Return on capital employed
Profit after financial items plus financial
expenses expressed as a percentage of
average capital employed. ((82.2 + 16.3)
/ 5,314.9 = 1.9%)
Return on equity
Profit after full tax as a percentage of
average equity including non-controlling
interests. (64.0 / 4,228.3 = 1.5%)