Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Q1 2021 Earnings Presentation
21 slides from Karnov Group Ab's earnings presentation, May 5, 2021
Slide 1: First quarter 2021
First quarter 2021 Q1 Flemming Breinholt, CEO and Dora Brink Clausen, CFO | 5 May 2021 Q1 2021 PRESENTATION 1
Slide 2: Q1 highlights and operational update
Q1 highlights and operational update Flemming Breinholt Q1 2021 PRESENTATION 2
Slide 3: Financial highlights
Financial highlights Good start to the year +10% +5% 40.7% 2.8 Net sales Organic growth Adjusted EBITA Leverage margin Q1 2021 PRESENTATION 3
Slide 4: Back on track in Denmark
Back on track in Denmark Updated platform launched with more than 17,000 users onboarded Key comments Organic growth of 3.1% and adjusted EBITA margin of 42.6% New updated platform launched in Q1 Well accepted by the users Along with other newly launched products we have formed a good basis for grow
Slide 5: New segment SE/NO
New segment SE/NO DIBkunnskap AS acquired in Q1 2021 Key comments 7.2% organic growth driven by good online sales, upselling to existing customers and sales to new customers Good development in municipalities, public sector and our EHS vertical DIBkunnskap AS is part of the new segment SE/NO DIBkunn
Slide 6: ESG a natural part of Karnov's DNA
ESG a natural part of Karnov’s DNA High rated on the Allbright list in 2020 Key comments ESG is a natural part of Karnov’s DNA Employees from over 20 countries Close to 50/50 % in genders, also in management and Board High rated on Allbright list in 2020 Low environmental impact Actively encouraging
Slide 7: Financial development
Financial development Dora Brink Clausen Q1 2021 PRESENTATION 7
Slide 8: Good start to the year
Good start to the year Strong net sales growth – margin still on a high level GROUP -0.9 10% Adjusted EBITA, SEKm and Net Sales, SEKm margin % pp 300 250 100 40.7% 90 41.6% 200 80 70 150 60 50 100 40 30 50 20 212 234 10 88 95 0 0 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2021 PRESENTATION 8
Slide 9: High net sales growth in Q1
High net sales growth in Q1 Growth due to strong online and offline sales GROUP Net Sales, SEKm +10% Key comments 250 Net sales growth of 10.2% of which organic growth was 5.0%, currency effects was -2.8% and acquired 200 growth was 8.0% Online sales continued to be a growth driver 150 Strong offlin
Slide 10: Margin on a high level
Margin on a high level DIBkunnskap AS has diluted the group margin with approximately 1 pp GROUP Adjusted EBITA and margin, SEKm and % Key comments 100 90 Adjusted EBITA improved by 8 % to SEK 95 m 80 (88) 70 Adjusted EBITA margin declined to the high 60 level 40.7 % (41.6), with DIBkunnskap AS havi
Slide 11: Online & subscriptions growing
Online & subscriptions growing SALES SPLIT Sales split online/offline, % Sales split subscription/non-subscription, % 100% 100% 20% 17% 28% 25% 80% 80% 60% 60% 72% 75% 40% 40% 80% 83% 20% 20% 0% 0% Q1 2020 Q1 2021 Q1 2020 Q1 2021 Online Offline Subscription Non-subscription Q1 2021 PRESENTATION 11
Slide 12: A strong quarter in Denmark
A strong quarter in Denmark Organic growth was 3 % DENMARK Adjusted EBITA, SEKm and % Net Sales, SEKm Key comments -2% Organic growth was 3%, however currency effects 120 0 pp have a negative impact of -5% 100 Organic growth driven by online sales as well as 50 offline sales above market trend 80 40
Slide 13: Still strong performance in SE/NO
Still strong performance in SE/NO Acquired growth accounts for 17% SE/NO Net Sales, SEKm Adjusted EBITA, SEKm and margin, % Key comments +24% -2 pp 140 7% organic growth for 2020 driven by good online sales, upselling to existing customers and sales to 120 new customers 50 43% 39% 35% 41% 100 Good p
Slide 14: Leverage below target also after acquisition
Leverage below target also after acquisition GROUP Adj. operating cash flow, SEKm and cash conversion, % 300 263% Key comments 250 Adjusted operating cash flow decreased by 39% As earlier announced, mainly timing effects on invoicing 200 173% due to improved processes 168% 156% Cash flow still stron
Slide 15: Summary of Q1
Summary of Q1 1 2 Good start of the year – Organic growth 5% Updated platform in Denmark and – Adjusted EBITA margin 40.7% new products to be launched in 2021 – Leverage below 3x also after acquisition 3 SE/NO segment has performed well – Public sector, municipalities and EHS vertical drivers Q1 202
Slide 16: New President and CEO from 8 May
New President and CEO from 8 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 transformation
Slide 17: 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 2021 PRESENTATION 17
Slide 18: Appendix
Appendix Q1 2021 PRESENTATION 18
Slide 19: 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 20: Key ratios per quarter
Key ratios per quarter Q1 2021 PRESENTATION 20
Slide 21: 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