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Patrik Syrén

Investor Relations Officer

Tel. +46730746630

Interim Report January-September 2012

Published: 23 October, 2012

The third quarter is the weakest in a consultancy firm. July and August, the vacation months, lead to lower activity on the market, which shows in the sales figures. But we have also seen signs of a slightly decreased demand, mainly in Sweden and Finland. The Norwegian market shows continued stability and strength.

The third quarter is the weakest in a consultancy firm. July and August, the vacation months, lead to lower activity on the market, which shows in the sales figures. But we have also seen signs of a slightly decreased demand, mainly in Sweden and Finland. The Norwegian market shows continued stability and strength.

At the same time, we see new opportunities in that some clients are changing the directions of their projects. This quarter we have therefore founded a company specialized in strategic consultancy for e-commerce and in October we founded a company offering management consultancy to companies in the energy sector.

As we mentioned in the last report, the companies we have founded or acquired during the last year have contributed positively to net sales and results. Start-ups have proved to be an efficient and safe way of expanding our operations, even though they often take longer to become profitable than acquisitions. We expect to found three more operations before the end of the year.

Net sales and results
Despite fewer working days, we have increased net sales by 2.1 percent during the first nine months of the year. The calendar effect, in combination with a tougher market mainly in Finland and Sweden, has had a negative effect on results.

A focus on profitability
Knowit’s most important financial target is that earnings per share will rise on par with the goals for operating margin and sales growth. These goals effectively govern our operations and place under-performing companies with the corporation in focus. Our work with a joint branding platform and internal processes for sales and organization are driven with the sole aim of increasing our external and internal efficiency, while decreasing sales costs and reinforcing our ability to make deliveries to our larger clients.

The projects we have invested in during the year regarding IT systems and our branding platform are now being completed. As regards IT projects, we have launched a new collaboration platform and moved our e-mail system to the cloud.

The future
Right now, it is hard to assess how demand will be affected by economic developments. However, I am convinced that Knowit, with geographic dispersion on many local markets, combined with a wide range of client segments and industry fields, has good chances of continuing to achieve longterm profitable growth.

Per Wallentin
CEO and President

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