Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Q1 2020 Earnings Presentation
22 slides from Karnov Group Ab's earnings presentation, May 5, 2020
Slide 1: First quarter 2020
First quarter 2020 Q1 Flemming Breinholt, CEO and Dora Brink Clausen, CFO | 5 May 2020 Q1 2020 PRESENTATION 1
Slide 2: Q1 highlights and operational update
Q1 highlights and operational update Flemming Breinholt Q1 2020 PRESENTATION 2
Slide 3: Financial highlights
Financial highlights Good start, small impact from Covid-19 +3% +2% 41.6 % 2.3 Net sales Organic growth Adjusted EBITA Leverage margin Q1 2020 PRESENTATION 3
Slide 4: Operational highlights
Operational highlights New investments in line with growth strategy Key comments Karnov Group has provided regulatory information related to the Covid-19 pandemic, both in Sweden and Denmark. Expanded the business with three new investments Strengthened the management team with new local CEOs for No
Slide 5: Investments
Investments 1 2 Ante ApS LEXNordics AB – Technology bolt-on – Vertical expansion – New technologies expected to be integrated – Legal practice management solution – Additional relevance and efficiency – Offering more value to our customers 3 Karnov Group Norway AS – Geographic expansion to Norway –
Slide 6: Increased focus on future growth in Denmark
Increased focus on future growth in Denmark Key comments to Q1 2% organic growth in Q1 – according to expectations Intensified work on providing new solutions to support future growth – first initiatives will be launched in second half of 2020 New case-preparation tool now up and running with approx
Slide 7: Good start of the year in Sweden
Good start of the year in Sweden Key comments to Q1 3% organic growth driven by good online sales and upselling to existing customers The Swedish Law Book was published as usual in Q1 and is still seen by customers as an important tool Continued integrating enhancements to JUNO based on feedback fro
Slide 8: Covid-19
Covid-19 Key comments on the Covid-19 pandemic Focus on our employees’ wellbeing and safety Special Covid-19 information section with high traffic No governmental support to Karnov; still proposing dividend Q1 2020 PRESENTATION 8
Slide 9: Financial development
Financial development Dora Brink Clausen Q1 2020 PRESENTATION 9
Slide 10: Still growing despite Covid-19 pandemic
Still growing despite Covid-19 pandemic .... with high stable margin GROUP Net Sales, SEKm +3% Adjusted EBITA, SEKm and margin % 300 250 100 90 41.6% 41.6% 200 80 150 70 60 50 100 40 30 50 20 205 212 10 85 88 0 0 Q1 2019 Q1 2020 Q1 2019 Q1 2020 Q1 2020 PRESENTATION 10
Slide 11: Continued steady sales growth
Continued steady sales growth … due to strong online performance GROUP Net Sales, SEKm Key comments +3% Net sales growth of 3.4% of which organic growth 200 was 2.3% and currency effects was 1.1% Covid-19 impact approx. 1 percentage point on 150 overall sales Online sales steady growth primarily due
Slide 12: High stable margin
High stable margin GROUP Adjusted EBITA and margin, SEKm and % Key comments 90 80 Adjusted EBITA improved by 4 percent to SEK 88 m (85) 70 60 Adjusted EBITA margin unchanged at 41.6 %, 42% 42% despite personnel expenses back to normal 50 39% 40% 39% 34% 35% level of split between maintenance and 40
Slide 13: Online & Subscriptions growing
Online & Subscriptions growing SALES SPLIT Sales split online/offline, % Sales split subscription/non-subscription, % 100% 100% 23% 20% 32% 28% 80% 80% 60% 60% 68% 72% 77% 40% 40% 80% 20% 20% 0% 0% Q1 2019 Q1 2020 Q1 2019 Q1 2020 Online Offline Subscription Non-subscription Q1 2020 PRESENTATION 13
Slide 14: Strong result in Denmark
Strong result in Denmark DENMARK Adjusted EBITA, SEKm and % Net Sales, SEKm Key comments +4% +2 Adjusted EBITA up 8% and margin 2pp due to higher pp sales, good product mix and good cost control 100 3.7% net sales growth of which 1.5% is organic 80 50 growth while currency effects added 2.2% 40 Covi
Slide 15: Continued strong performance in Sweden
Continued strong performance in Sweden SWEDEN Net Sales, SEKm Adjusted EBITA, SEKm and margin, % Key comments +3% -2% 3% organic growth driven by good online sales, 100 upselling to existing customers and sales of new 50 45% 43% products 80 35% 41% 34% Offline sales declined both due to long-term tr
Slide 16: Strong cash conversion
Strong cash conversion GROUP Adj. operating cash flow, SEKm and cash conversion, % 219% 200 177% Key comments 168% 173% 156% Adjusted operating cash flow increased 4 % 150 Cash conversion rate up to 173 % from 168% in Q1’19 100 Leverage at 2.3, in line with financial target 37% 50 25% 2% 177 23 120
Slide 17: Summary of the first quarter
Summary of the first quarter 1 2 Good start to the year – Sales up 4% Three new investments incl. – Adjusted EBITA Margin steady at 41.6% geographic expansion to Norway – Leverage well below 3x 3 4 New local CEOs in Sweden and Special Covid-19 information section Denmark – even more focus on our wit
Slide 18: Q&A
Q&A Better decisions, faster Find what you need, trust what you find and do it quickly. For more information visit www.karnovgroup.com/en/section/investors/ Q1 2020 PRESENTATION 18
Slide 19: Appendix
Appendix Q1 2020 PRESENTATION 19
Slide 20: Karnov – The leading B2B platform
Karnov – The leading B2B platform For legal and tax professionals in Denmark and Sweden PRACTITIONERS PUBLIC CONTENT SOURCES Enabling users to make better decisions, faster – every day Legal Accounting and practitioners audit firms CORPORATE Nordic Small & medium PROPRIETARY CONTENT blue-chips enter
Slide 21: Key ratios per quarter
Key ratios per quarter Q1 2020 PRESENTATION 21
Slide 22: Important information
Important information The following applies to this document, the oral presentation of the information in this document by Karnov or any person on behalf of Karnov, and any question-and-answer session that follows the oral presentation. This presentation may contain forward-looking statements that r