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COMMENTS FROM THE CEO

Continued growth

on an uncertain market

Knowit is starting off the year with continued net sales growth and high profitability. We are faced with a relatively stable demand and continue to develop high-quality services and solutions to our clients, while also striving to strengthen our position as a leading player in digital transfor- mation. The effects of increased geopolitical uncertainty and a changed macroeconomic climate are felt through longer decision-making processes in new projects and challenges with longer delays in placing junior consultants in new assignments.

DURING THE FIRST quarter of the year, we have faced high demand in our four business areas, although there is more hesitance among our clients compared with a year ago, when the economic climate was still much stronger. I am particularly proud of a continued positive development in the business area Connectivity, which delivers good growth and profitability, largely thanks to our ability to adapt quickly and reallocate competences based on our clients' needs. The business area Experience is also showing stable growth during the quarter and has strengthened its position further. The business areas Insight and Solutions are challenged by longer delays among some clients, and a somewhat weaker invoicing ratio compared with last year. We are continuing to increase our focus on sales-driving activities and simultaneously working continually to improve internal efficiency and productivity.

WITH JOINT FORCES FOR

EDUCATION AND EQUALITY

Continually working to develop Knowit as an employer is a high priority on our strategic agenda. During the first quarter, we have implemented new training programs and platforms to strengthen both employees and clients on their digital journeys. A good example is "Get to Knowit," a digital onboarding platform that helps new employees get familiar with their new employer and increase their understanding of how different parts of the organization can collaborate to create greater client benefits. We have also introduced courses in sustainability both aimed at all employees and niched to specific roles, as well as a course on cybersecurity. At the end of March, Knowit signed Diversity Charter Sweden's diversity and inclusivity charter, which is a long-term collaboration to increase competence and contribute positively to societal development in these matters. Knowit also participated as a proud cocreating partner at Women in Tech in March, a forum aimed at increasing the attractiveness of working in the tech sector among women. Knowit's commitment and investments when it comes to diversity and inclusion show how we work to strengthen both ourselves and society at large by creating a more inclusive and sustainable future.

AN INNOVATIVE ENVIRONMENT

WITH AN INCREASED FOCUS ON PRODUCTS

The heart of our business model is a strong consultancy operation where we help companies and organizations in the digital transformation. At the same time, we are proud to be able to offer a working environment characterized by innovation and drive, where our employees are given the space to develop new product solutions that can create new business opportunities. Knowit already has a range of products and platforms that all make up important supplements to other services and offers. In the future, I envision us continuing to develop and offer innovative and cost-effective products and platforms that create value for our clients and contributing to a successful digitalization journey.

STRONG POSITION FOR

CONTINUED POSITIVE DEVELOPMENT

Knowit has a strong position as a digitalization partner to Nordic companies and I view the coming year with confi- dence, despite the market situation being more difficult to assess than it was a year ago. Our ability to be agile and quickly adapt to changing market conditions and our clients' needs will be a strength in a world that remains uncertain.

PER WALLENTIN

CEO and President

2 KNOWIT AB INTERIM REPORT JANUARY - MARCH 2023

EVENTS DURING THE QUARTER

JANUARY - MARCH 2023

Knowit has achieved the attractive status AZURE EXPERT MANAGED SERVICES PROVIDER, thereby becoming one of the few Microsoft partners in Nordic who has been granted this status. The program is designed to ensure that companies and organizations get access to the most competent Azure partners.

Knowit has been appointed a GOOGLE CLOUD PREMIER PARTNER, one step on the road to guiding companies and organizations along their entire cloud journey. Knowit has more than 50 Google Cloud Professional-certified cloud architects and data engineers.

Knowit has signed Diversity Charter Sweden's DIVERSITY AND INCLUSIVITY CHARTER in order to further strengthen and broaden its work on equality. The collaboration serves to increase competence within the company and exchange experiences with other companies in order to create a more inclusive society.

Knowit AB has expanded its ISO certification with a CERTIFICATE IN INFORMATION SECURITY (ISO 27 001). Knowit AB already held certificates in quality management (ISO 9 001) and environmental management (ISO 14 001). The ISO certificates increase the possibilities of deals with clients that require systematic work in these areas, for instance in the public sector.

Knowit participated as a partner in this year's WOMEN IN TECH in Stockholm. Knowit was represented by around 30 female managers and consultants, with the goal of increasing its attractiveness as an employer and meeting new talent.

3 KNOWIT AB INTERIM REPORT JANUARY - MARCH 2023

THE PERIOD IN BRIEF

Stable start to the year

JANUARY - MARCH 2023

THE FIRST QUARTER of the year is characterized by a continued demand for digitalization competence, but with increased uncertainty on the market compared with a year ago, resulting in longer sales cycles and more hesitance among some clients. Growth was 16.2 percent or 6.0 percent, when calculated as if the year's acquisitions were included one year ago. The adjusted EBITA profit was SEK 198.1 million, which is a weakening of the adjusted EBITA margin to 10.1 (11.5) percent.

On a weaker market, the demand for specialist knowledge in digitalization, cyber- security, and product development remains high, which benefits Knowit, thanks to its strong position on the Nordic digitalization market. The proportion of subconsul- tants in larger strategic client assignments has not increased during the quarter, but has an overall negative impact on the margin.

								7,109
				5,496
																	613
													579
3,454
									343
1,011	1,034	1,191	1,576	1,695	1,645	1,521	1,972	1,971	103	98	105	181	194	141	95	179	198
Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
2021	2021	2021	2021	2022	2022	2022	2022	2023	2021	2021	2021	2021	2022	2022	2022	2022	2023

NET SALES, SEK, MILLIONS	ADJUSTED EBITA PROFIT,
Net sales, quarterly data	SEK, MILLIONS
Adjusted EBITA profit, quarterly data
Rolling 12 months
	Rolling 12 months

3 10

12 45

29
SALES PER COUNTRY
JANUARY - MARCH 2023
Sweden	45%	(49)
Norway	29%	(32)
Denmark	12%	(7)
Finland	10%	(9)
Poland	3%	(3)
Other	0%	(0)

4 KNOWIT AB INTERIM REPORT JANUARY - MARCH 2023

THE PERIOD IN BRIEF

JANUARY - MARCH 2023

Financial development

The net sales for the period increased to SEK 1,970.5 (1,695.3). Profit before amortization of intangible assets (EBITA) increased to SEK 197.2 (192.1) million. The adjusted EBITA profit was SEK 198.1 (194.2) million, adjusted for acquisition and integration costs of SEK 0.9 million.

Compared with the corresponding period last year, exchange rate developments had a positive effect on EBITA totaling SEK 11.4 million. Cash flow from operating activities increased to SEK 106.5 (5.2) million. The past year was affected negatively by taxes paid, including in relation to restructuring effects in Finland. The change in operating capital had an impact of SEK -39.6(-104.8) million, affected mainly by accounts receivable.

The below table shows financial history that includes the acquisitions of Swedspot, Miracle, Marketing Clinic, Ascend, and Ionic for comparable periods, to facilitate for the reader to follow the development. See more information on page 23.

SEK, MILLIONS	JAN-MAR 2023	JAN-MAR 2022
Sales	1,970.5	1,695.3
Sales, acquisitions	-	163.8	1)
Sales, including acquisitions	1,970.5	1,859.1
Sales, change, %	6.0
of which is exchange rate effect, %	0.6

1) Adjustments relate to addition of net sales in Swedspot, Miracle, Marketing Clinic, Ascend, and Ionic for the period January to March 2022.

In the below table, EBITA is adjusted for items that impair comparability between different periods, to enable increased understanding for the Group's underlying operations.

SEK, MILLIONS	JAN-MAR 2023	JAN-MAR 2022
EBITA	197.2	192.1
Adjusted EBITA profit 1)	198.1	194.2
EBITA margin, %	10.0	11.3
Adjusted EBITA margin, % 2)	10.1	11.5
Cash flow from operating activities	106.5	5.2
Intangible assets	4,585.1	3,986.2
Number of employees at the end of the period	4,377	3,871

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 sales and costs for restructuring and integration programs.
2. Adjusted EBITA profit in relation to the net sales of the period.

5 KNOWIT AB INTERIM REPORT JANUARY - MARCH 2023