Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Q2 2020 Earnings Presentation
21 slides from Karnov Group Ab's earnings presentation, Aug 26, 2020
Slide 1: Second quarter 2020
Second quarter 2020 Q2 Flemming Breinholt, CEO and Dora Brink Clausen, CFO | 26 August 2020 Q2 2020 PRESENTATION 1
Slide 2: Q2 highlights and operational update
Q2 highlights and operational update Flemming Breinholt Q2 2020 PRESENTATION 2
Slide 3: Financial highlights
Financial highlights Another solid quarter - impact from Covid-19 on offline +3% +2% 35.5 % 2.4 Net sales Organic growth Adjusted EBITA Leverage margin Q2 2020 PRESENTATION 3
Slide 4: Operational highlights
Operational highlights Continued development of our online offering Key comments New local CEOs have been onboarded JUNO enhancements deployed and new products launched in Denmark Karnov Group has shown relevance in the Covid-19 pandemic with high activity on its platform Q2 2020 PRESENTATION 4
Slide 5: Development focus back to normal in Denmark
Development focus back to normal in Denmark Key comments to Q2 Decrease in growth following decrease in offline, demand from SME market due to Covid-19 and delay in new business Intensified work on providing new solutions to support future growth – two new products launched in second quarter New cas
Slide 6: Solid growth in Sweden
Solid growth in Sweden Key comments to Q2 6% organic growth driven by good online sales, upselling to existing customers and sales of new products Continued integrating enhancements to JUNO based on feedback from users Virtual classroom courses with positive feedback Good performance in the EHS fiel
Slide 7: Covid-19
Covid-19 Key comments on the Covid-19 pandemic Continue to follow regulations and recommendations High activity on our special Covid-19 information section The prolonged pandemic impacts offline sales and also delays in new business Latest assessment is that this will continue through the year Q2 20
Slide 8: Future Lawyer Survey 2020
Future Lawyer Survey 2020 Largest report of its kind in Scandinavia Key comments Purpose to drive the legal sector in Sweden and Denmark forward Focuses on three areas: Transformation, Innovation and Motivation Over 3,500 respondents making the report the largest of its kind in Scandinavia Swedish r
Slide 9: Financial development
Financial development Dora Brink Clausen Q2 2020 PRESENTATION 9
Slide 10: Quarter in line with expectation
Quarter in line with expectation .... with improved, high margin GROUP Net Sales, SEKm +3% Adjusted EBITA, SEKm and margin % 300 250 100 200 90 80 34.7% 35.5% 150 70 60 50 100 40 30 50 20 173 178 10 60 63 0 0 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2020 PRESENTATION 10
Slide 11: Continued sales growth
Continued sales growth … due to solid online performance GROUP Net Sales, SEKm Key comments +3% Net sales growth of 2.6% of which organic growth 200 was 2.1%, currency effects was 0.3% and acquired growth was 0.2% 150 Covid-19 impact estimated to >1 % on overall sales Online sales steady growth prim
Slide 12: High stable margin
High stable margin GROUP Adjusted EBITA and margin, SEKm and % Key comments 90 80 Adjusted EBITA improved by 5 % to SEK 63 m (60) 70 60 Adjusted EBITA margin improved to 35.5 % 42% 42% (34.7), due to higher sales, good cost control 50 40% 39% 34% 35% 36% and despite personnel expenses back to normal
Slide 13: Online & subscriptions growing
Online & subscriptions growing SALES SPLIT Sales split online/offline, % Sales split subscription/non-subscription, % 100% 100% 13% 9% 7% 17% 80% 80% 60% 60% 87% 83% 93% 40% 40% 91% 20% 20% 0% 0% Q2 2019 Q2 2020 Q2 2019 Q2 2020 Online Offline Subscription Non-subscription Q2 2020 PRESENTATION 13
Slide 14: Good margin in Denmark
Good margin in Denmark DENMARK Adjusted EBITA, SEKm and % Net Sales, SEKm Key comments -1% -1 Good margin in Denmark pp Sales decrease following Covid-19 which impacts 100 offline sales and delays new business 80 50 SME market also impacted 40 60 42% 44% 41% 41% 42% 43% 40% Back to normal levels of
Slide 15: Good performance in Sweden
Good performance in Sweden SWEDEN Net Sales, SEKm Adjusted EBITA, SEKm and margin, % Key comments +7% +3pp 6% organic growth driven by good online sales, 100 upselling to existing customers and sales of new 50 43% products 80 35% 41% 34% Offline sales declined both due to long-term trend 40 60 29% 2
Slide 16: Strong cash conversion
Strong cash conversion GROUP Adj. operating cash flow, SEKm and cash conversion, % 200 177% Key comments 168% 173% 156% Adjusted operating cash flow improved due to 150 improved operating profit and improved working capital 100 66% Cash conversion rate up to 66% from 25% in Q2’19 Leverage at 2.4, in
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/ Q2 2020 PRESENTATION 17
Slide 18: Appendix
Appendix Q2 2020 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 Q2 2020 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