Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Aktiespararna 11 May 2022
20 slides from Karnov Group Ab's conference presentation, May 11, 2022
Slide 1: Aktiespararna 11 May 2022
Aktiespararna 11 May 2022 Pontus Bodelsson, CEO Jonas Olin, CFO 1
Slide 2: Group CEO and Group CFO
Group CEO Group CFO • Group CEO since May 2021 • Group CFO since March 2022 • Previously CEO of Sydsvenskan/HD • Previously CFO and Head of IR at and Nationalencyklopedin/NE with Resurs Holding and Nordic more than 20 years experience as Waterproofing with extensive CEO international and M&A experie
Slide 3: History of Karnov Group
• History of Karnov Group • 290 employees • 80,000 users on our platforms
Slide 4: For legal and tax professionals in Denmark, Sweden and Norway
For legal and tax professionals in Denmark, Sweden and Norway 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 enterprises ➔>1,500 expert auth
Slide 5: Products in Denmark, Sweden and Norway
TRAINING & EHS & WORKFLOW PRACTICE RESEARCH NEWS COMPLIANCE TOOLS MANAGEMENT TaxGuide Karnov Online Karnov Business Karnov Municipality Optimiser DENMARK Karnov T&A Online Books & periodicals JUNO NJ Education SWEDEN JUNO Municipality Books & periodicals NJ News Karnov NORWAY Lovkommentar (minority
Slide 6: Dating back to 1867
• Acquisition of DIBkunnskap • Pontus Bodelsson appointed new • Becomes listed on CEO Dating back to 1867 • Acquires Norstedts Nasdaq Stockholm Juridik from Wolters • Acquisition of Kluwer • JUNO platform launched Echoline in Sweden • Acquires 40% of legal • Intention to • Invests in acquire LIS tec
Slide 7: Market overview
Market overview % of Group Sales CUSTOMERS (2021) Total addressable market SEK 2,150m Law firms 52% 48% Corporates Market leading provider of legal information services in Gov. admin Denmark and Sweden Courts T&A firms DIBkunnskap market leading provider of digital workflow tools for T&A in Norway M
Slide 8: Contemplated acquisition of legal research businesses in Spain and France
Contemplated acquisition of legal research businesses in Spain and France Transaction at a glance Karnov Group prepares to acquire the legal information-based businesses of Thomson Reuters in Spain and Wolters Kluwer in Spain and France Very well-known brands within the segments of legal information
Slide 9: Three medium-term financial targets
Three medium-term financial targets • Annual organic growth rate of 3-5 percent • Increase our adjusted EBITA margin • Net debt ratio to adjusted EBITDA LTM below 3.0 times
Slide 10: Organic growth coming from increased market demand on online-based products
Organic growth coming from increased market demand on online-based products Net Sales, SEKm 14% Net Sales, SEKm 9% 900 300 800 250 700 600 200 500 150 400 300 100 200 50 100 757 771 878 234 255 0 0 FY 2019 FY 2020 FY 2021 Q1 2021 Q1 2022
Slide 11: Online & subscriptions growing – offline seasonality in Q1 and Q3
Online & subscriptions growing – offline seasonality in Q1 and Q3 Sales split online/offline, % Sales split subscription/non-subscription, % 100% 100% 17% 15% 14% 12% 23% 20% 80% 80% 60% 60% 83% 88% 40% 80% 40% 85% 86% 77% 74% 77% 20% 20% 0% 0% FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021 Online
Slide 12: First quarter typically higher margin than the full year due to seasonality
First quarter typically higher margin than the full year due to seasonality -0.2 0.1 Adjusted EBITA, SEKm and pp pp margin % Adjusted EBITA, SEKm and 350 37.2% margin % 300 36.6% 37.4% 250 120 40.8% 200 100 40.7% 150 80 100 60 40 50 279 288 327 20 95 104 0 0 FY 2019 FY 2020 FY 2021 Q1 2021 Q1 2022
Slide 13: Strong cash flow in Q1 and Q4 due to invoicing season – leverage at low level
Strong cash flow in Q1 and Q4 due to invoicing season – leverage at low level of 0.8x GROUP Adj. operating cash flow, SEKm and cash conversion, % 330 263% 253% 280 230 173% 180 134% GROUP 130 98% 66% 80 46% 30 170 49 -1% 192 104 38 214 157 -12% -20 -1 -11 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2
Slide 14: Find what you need, trust what you find and do it quickly.
Find what you need, trust what you find and do it quickly. For more information visit www.karnovgroup.com
Slide 15: Appendix
Appendix COMPANY PRESENTATION IlIIKARNOV GROUP
Slide 16: Total addressable market is expected to grow
• Total addressable market is expected to grow • Strategy to capitalise on this and capture the market potential 17
Slide 17: Key strategic growth initiatives
Key strategic growth initiatives 3 Further geographic 2 expansion Expand into adjacent 1 verticals Further strengthen core proposition Key strategic Digitalisation People & culture Strong brand Go-to-market enablers
Slide 18: One of the top companies on the Allbright list in 2021
One of the top companies on the Allbright list in 2021 KEY COMMENTS A front-runner in social and governance Employees from over 20 countries Close to 50/50 % in genders, also in management and Board One of the top companies on the Allbright list in 2021 Low environmental impact Actively encouraging
Slide 19: Company Video
Company Video: https://vimeo.com/322229237
Slide 20: 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