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COMMENTS FROM THE CEO

A strong quarter and an exciting beginning

We have increased net sales and profit, with a stable margin for the first six months of the year, adjusted for one-off costs connected to the acquisition of Cybercom. Through the acquisition, we are taking big steps forward on our growth journey. At the same time, all three business areas - in particular Knowit Insight - delivered increased net sales and improved profit during the quarter.

DURING THE QUARTER, we have announced the acquisition of Cybercom, in a deal that became final on the first of July. For the past several years, we have seen a development toward more complex client needs, requiring competence throughout the entire value chain: from product development to entirely new customer interfaces and processes. Here, Cybercom supplements Knowit's offer with more tech-oriented competences and sustainability services at the cutting edge.

SUCCESSFUL CAPITAL ACQUISITION

During June, we performed a successful directed new issue, in which both existing and new shareholders showed high interest in subscription. The issue strengthens our financial position and gives us financial scope for future expansion. The high level of interest from the stock market is - to me - a clear sign that the capital market has strong faith in Knowit.

THE MARKET REMAINS STRONG

The market for the operations in the business area Solutions remains strong. We increased net sales with a retained profit, but a somewhat lower margin, as compared with in the corresponding quarter last year. In southern Sweden, we have had high capacity utilization and a positive development.

During the quarter, we have invested in new operations in Norway and performed streamlining in Gothen- burg. The main focus has been on sales and we have signed a few large and important deals. We have a positive net recruitment with new consultants coming in after the summer.

SUCCESSFUL INTEGRATION

The business area Experience has, following the acquisition of Creuna, reinforced its position as the leading digital agency in the Nordic region. We continue to increase net sales and profit compared with in the second quarter 2020, and the local operations where Experience and Creuna have formed joint teams are doing very well.

Demand is high, in particular for e-commerce and e-health solutions.

A POSITIVE TREND

Our offer in management consulting in the business area Insight has continued its positive trend. During the second quarter, net sales and profit were strengthened

compared with in the corresponding quarter last year. The streamlining performed in 2020 has contributed greatly to this development.

The demand in the security area remains very high.

A NEW CHAPTER

Our successful integration of Creuna, our acquisition of Cybercom, and our simultaneous delivery of a strong result during the second quarter make me proud.

Now, a new chapter in Knowit's history begins: creating a more powerful Knowit along with our colleagues at Cybercom. The planning of the integration between our two companies is complete and we have come a fair way in the integration itself, with promising results. It is an exciting journey that we have begun together.

PER WALLENTIN

CEO and President

2 KNOWIT AB INTERIM REPORT JANUARY - JUNE 2021

FORUM HACKATHON,

pants worldwide.

PUBLIC ROADS ADMINISTRATION

MENT AND ARCHITECTURE

EVENTS DURING THE PERIOD

APRIL - JUNE 2021

Knowit announced the ACQUISITION OF CYBERCOM. The goal of the acquisition is creating a unique offer in digital transformation. The new company will have around 3,800 employees and estimated net sales of SEK 5 billion.

Knowit performed a directed new issue of 1,785,714 shares and obtained around SEK 500 million, before issue costs. The directed NEW ISSUE WAS SUCCESSFUL and included Swedish and international institutional investors, including Formica Capital (Knowit's largest shareholder after finalization of the acquisition of Cybercom), Clients Kapitalförvaltning, and Didner & Gerge.

The Board has during the quarter decided on NEW FINANCIAL TARGETS. The updated targets serve to create the conditions for sustainable growth and continued acquisitions.

A new company was established in Oslo within the business area Solu- tions. The company focuses on senior competence in SYSTEM DEVELOP-

for larger digitalization projects.

Knowit is one of eight suppliers selected as a partner to the Norwegian for the next four years.

Knowit's contribution "War on Cancer" won an award in the SAS GLOBAL an innovation event with more than 1,000 partici-

Three listed companies that have all won the ALLBRIGHT AWARD as the most equal company on the stock exchange participated in a digital breakfast seminar organized by Knowit.

Per Wallentin participated in a digital panel debate during TECHARENAN BRIGHT in Stockholm, on the topic "Digitalization, new business models, and large investments - important keys to saving the planet."

3 KNOWIT AB INTERIM REPORT JANUARY - JUNE 2021

THE PERIOD IN BRIEF

Expansion with stable margin

JANUARY - JUNE 2021

KNOWIT ACQUIRES CYBERCOM GROUP Knowit announced the acquisition of Cybercom during this quarter. The goal of the acquisition is creating a unique client offer in digital transformation. The new company will have around 3,800 employees, net sales of SEK 5 billion, and an EBITA of SEK 517 million for the full year 2020 according to pro forma calculations in connection with the prospectus made public on June 8, 2021. The acquisition will be consolidated as per July 1, 2021.

CONTINUED POSITIVE DEVELOPMENT AND STRONG FINANCIAL POSITION The net sales for the period increased to SEK 2,045.1 (1,793.8), affected by the acquisition of Creuna. Profit before amortization of intangible assets (EBITA) increased to SEK 175.9 (168.2) million. The adjusted EBITA profit increased to SEK 201.6 (168.2) million, adjusted for acquisition and integration costs of SEK

25.7 million. Compared with the corresponding period last year, exchange rate developments had a negative effect on EBITA totaling SEK -0.3 million. Last year, Knowit was granted support in the form of reduced employer contributions of SEK 26 million and furlough support of SEK 6 million. Taken together, this meant reduced personnel costs of SEK 32 million at the end of the second quarter.

Cash flow from operating activities was SEK 129.0 (280.4) million, where the change in operating capital had an impact of SEK -44.0 (164.7) million. The change in operating capital in the previous year was positively affected by one-off effects connected to personnel debts and accounts receivable.

In June, Knowit performed a directed new issue of 1,785,714 shares and obtained around SEK 500 million. Knowit has a stable financial position, with net cash of SEK 559.9 million.

SEK, MILLIONS	JAN-JUNE 2021	JAN-JUNE 2020
Sales	2,045.1	1,793.8
Sales, Creuna	-	201.4
Sales, including Creuna	2,045.1	1,995.2
Sales, change, %	2.5
of which is exchange rate effect, %	-0.5
EBITA	175.9	168.2
Adjusted EBITA profit	201.6	168.2
EBITA margin, %	8.6	9.4
Adjusted EBITA margin, %	9.9	9.4
Cash flow from operating activities	129.0	280.4
Intangible assets	1,394.2	1,036.8
Number of employees	2,549	2,326

								3,630
				3,411
																	368
3,244									321				322
845	709	908	936	858	661	924	1,011	1,034	65	56	97	96	73	59	108	103	98
Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1	Q2
2019	2019	2019	2020	2020	2020	2020	2021	2021	2019	2019	2019	2020	2020	2020	2020	2021	2021

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

	5	4
39		52

SALES PER COUNTRY
Sweden	52%	(55)
Norway	39%	(38)
Finland	5%	(5)
Denmark	4%	(2)

4 KNOWIT AB INTERIM REPORT JANUARY - JUNE 2021

MARKET AND OPERATIONS

Sustainability and digitalization in focus

Knowit's strategy is to create sustainable and innovative digital solutions that contribute to high business value for its clients. With its three business areas, Knowit can accommodate purchasers throughout its clients' organizations. The three business areas are: Solutions, system development and tech-associated services; Experience, digital communication solutions and data-driven customer experiences; Insight, management consultancy and organizational development.

DIGITALIZATION CREATES NEW possibilities for citizens and society. 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, events, and travel planning. Every day, people use many solutions from Knowit that simplify their lives and create new ways to keep in touch and communicate.

Knowit Solutions helps companies and organizations to develop their operations and succeed in the digital shift. Together with its clients, Solutions develops tailored systems and solutions that make use of the latest tech- nology. In this way, Knowit contributes to a simpler everyday life for individuals, and smarter, more effective processes for its clients.

The business area Experience assists its clients in building stronger relationships with their end customers. Through creating the most relevant and personal customer experiences, based on data-driven insights, Experience contributes to increasing customer loyalty and increasing precision in customer offers. This can involve anything from user-friendly customer interfaces, e-com- merce, and bank services to new services in the public sector.

	10	3	4
	5
		5	38
31		12
		59
		13
			20

Knowit Insight offers management consultancy services that support management teams to create effective and agile organizations. The transition caused by digitalization creates an increased demand for services in security and law, culture and behavior change, development of operative processes, and new work methods.

A STRONG CLIENT OFFERING

The three 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 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's broad and specialized offerings mean that its clients are found in many different industries. The distribution of sales is relatively stable, with the largest net sales in the public sector, providing 38 percent of net sales. The shares in retail, banking and finance, and the manufacturing industry are relatively stable, each in the range 12-20 percent of sales.

A FOCUS ON SUSTAINABILITY

There are several initiatives within Knowit with the goal of developing our client offers within sustainability. A number of webinars on sustainability were held during the spring for the target group of decisionmakers in companies interested in sustainability matters.

SALES PER BUSINESS AREA

JANUARY - JUNE 2021

Solutions	59%	(66)
Experience	31%	(23)
Insight	10%	(11)

SALES PER CLIENT INDUSTRY JANUARY - JUNE 2021

Public sector	38%	(38)
Retail and service companies	20%	(15)
Banking, finance and insurance	13%	(16)
Industry	12%	(12)
Energy	5%	(6)
Telecommunication	5%	(5)
Media, education and gaming	3%	(2)
Other	4%	(6)

Together with Cybercom, which has a clear position in sustainability - primarily through initiatives in the climate area - the companies' joint efforts will be coordinated to create an even stronger client offer, with digitalization as an enabler of a sustainable society.

ATTRACTIVE TRAINEE PROGRAM

Knowit's trainee program Knowit Academy has accepted around 30 new talents. Interest has been high, with many

5 KNOWIT AB INTERIM REPORT JANUARY - JUNE 2021