Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Q4 2020 Earnings Presentation
24 slides from Karnov Group Ab's earnings presentation, Feb 25, 2021
Slide 1: Fourth quarter 2020
Fourth quarter 2020 Q4 Flemming Breinholt, CEO and Dora Brink Clausen, CFO | 25 February 2021 Q4 2020 PRESENTATION 1
Slide 2: Q4 highlights and operational update
Q4 highlights and operational update Flemming Breinholt Q4 2020 PRESENTATION 2
Slide 3: Financial highlights
Financial highlights Ending the year on a positive note +2% +2% +60 bp 1.9 Net sales Organic growth Adjusted EBITA Leverage margin Q4 2020 PRESENTATION 3
Slide 4: Operational highlight
Operational highlight Acquisition of DIBkunnskap AS – to strengthen our footprint in Norway Key comments Fits well into overall strategy DIB improves workflow and efficiency Market leader in Norway and will continue to grow while expand internationally Has historically been successful in launching n
Slide 5: High margins in Denmark
High margins in Denmark New platform soft launched with more than 10,000 users onboarded Key comments to Q4 New platform soft launched in Q4 Users can easily change between old and new for a period of time Along with other newly launched products we have formed a good basis for growth Adjusted EBITA
Slide 6: A good year in Sweden
A good year in Sweden Key comments to Q4 2% organic growth driven by good online sales, upselling to existing customers and sales to new customers Initiatives to strengthen our customer centricity have been successfully received in the market Strong quarter for virtual legal training courses Market
Slide 7: Covid-19
Covid-19 Key comments on the Covid-19 pandemic Continue to follow regulations and recommendations Still high activity on our special Covid-19 information sections, showing relevance The pandemic impacts offline sales, SME market demand and also delay decision- making on new business Estimated negati
Slide 8: Financial development
Financial development Dora Brink Clausen Q4 2020 PRESENTATION 8
Slide 9: A solid year with good growth
A solid year with good growth .... Covid-19 impacted negatively with 1-2 percentage points GROUP 0% 2% Net Sales, SEKm Net Sales, SEKm 300 800 700 250 600 200 500 150 400 300 100 200 50 100 189 189 757 771 0 0 Q4 2019 Q4 2020 FY 2019 FY 2020 Q4 2020 PRESENTATION 9
Slide 10: Improved margins in line with financial target
Improved margins in line with financial target .... full-year improved by 60 basis points GROUP Adjusted EBITA, SEKm and 0.3 0.6 margin % pp Adjusted EBITA, SEKm and pp margin % 100 37.4% 90 300 36.8% 80 70 31.4% 31.7% 250 60 200 50 40 150 30 100 20 50 10 59 60 279 288 0 0 Q4 2019 Q4 2020 FY 2019 FY
Slide 11: Equally high sales numbers as last year
Equally high sales numbers as last year … solid performance with FX effects and Covid-19 impacting negatively GROUP Net Sales, SEKm Key comments +0% Net sales growth of -0.2% of which organic growth 200 was 1.2%, currency effects was -1.7% and acquired growth was 0.3% 150 Online sales continued to b
Slide 12: Improved margin compared to last year
Improved margin compared to last year GROUP Adjusted EBITA and margin, SEKm and % Key comments 90 80 Adjusted EBITA improved by 1 % to SEK 60 m (59) 70 60 Adjusted EBITA margin improved to 31.7 % 42% 42% (31.4), due to us optimising processes and 50 39% 40% 34% 35% 36% preparing our organisation for
Slide 13: Online & subscriptions growing
Online & subscriptions growing SALES SPLIT Sales split online/offline, % Sales split subscription/non-subscription, % 100% 100% 18% 14% 12% 15% 14% 21% 23% 20% 80% 80% 60% 60% 79% 82% 77% 80% 40% 40% 86% 88% 85% 86% 20% 20% 0% 0% Q4 2019 Q4 2020 FY 2019 FY 2020 Q4 2019 Q4 2020 FY 2019 FY 2020 Online
Slide 14: Staying strong in Denmark
Staying strong in Denmark DENMARK Adjusted EBITA, SEKm and % Net Sales, SEKm Key comments -2% Organic growth was 1%, however currency effects 0 pp impacts with -3% 100 New products launched in second half 2020 form 80 50 basis for growth 40 Covid-19 continues to impact offline sales, SME 60 43% 44%
Slide 15: A good year in Sweden
A good year in Sweden SWEDEN Net Sales, SEKm Adjusted EBITA, SEKm and margin, % Key comments +2% +6% 4% organic growth for 2020 driven by good online 100 sales, upselling to existing customers and sales to 50 43% new customers 80 41% 35% 35% Good performance in EHS solution 40 31% 29% 29% 30% Adjust
Slide 16: Strong financial position
Strong financial position GROUP Adj. operating cash flow, SEKm and cash conversion, % 300 263% Key comments 250 Adjusted operating cash flow for the full-year close to SEK 500 m, enabling dividend proposal 200 177% 173% SEK 300 m paid-out in January 2021 for acquisition of 168% 156% DIBkunnskap AS 1
Slide 17: Dividend proposal
Dividend proposal Board proposes SEK 1.00 per share to be paid on May 12 DIVIDEND Dividend level 300 Key comments Proposed dividend of SEK 1.00 per share 250 Karnov’s objective is to distribute 30–50 per cent of the purchase price allocation (PPA) adjusted net 200 profit Proposed dividend correspond
Slide 18: Summary of the year
Summary of the year 1 2 Strong results in global pandemic Four new investments in 2020 – Ante ApS, technology bolt-on – Organic growth 2% – LEXNordics AB, new vertical – Adjusted EBITA margin 37.4% – Karnov Group Norway AS, geographical expansion – Leverage well below 3x – DIBkunnskap AS, new vertic
Slide 19: New President and CEO from May
New President and CEO from 10 May Pontus Bodelsson is an experienced business leader Key comments Over 20 years experience as CEO Including digital knowledge company NE/Nationalencyklopedin and the media group Sydsvenskan/HD Strong leadership experience as well as experience in digital transformatio
Slide 20: 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/ Q4 2020 PRESENTATION 20
Slide 21: Appendix
Appendix Q4 2020 PRESENTATION 21
Slide 22: 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 23: Key ratios per quarter
Key ratios per quarter Q4 2020 PRESENTATION 23
Slide 24: 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