Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Q4 2023 Earnings Presentation
24 slides from Karnov Group Ab's earnings presentation, Feb 14, 2024
Slide 1: Q4 2023 Presentation
Pontus Bodelsson, Group CEO Magnus Hansson, Group CFO February 14th, 2024 1
Slide 2: Pontus Bodelsson
Pontus Bodelsson Q4 2023 PRESENTATION 2
Slide 3: A successful year – now launching our Acceleration Initiative
A successful year – now launching our Acceleration Initiative Net sales Organic growth Adjusted EBITA Leverage margin (SEKm) (adj. for one-off) Q4 2023 PRESENTATION 3
Slide 4: Key comments
• Post-merger integration ahead of plan • Updated profitable growth strategy • New financial targets Key comments First year with Region South Post Merger Integration is progressing ahead of plan Stable financial performance with harvested synergies Presented profitable growth strategy and updated f
Slide 5: Key comments: Launching new Acceleration Initiative
Launching new Acceleration Initiative to generate innovative customer solutions and improved efficiency Key comments Region South integration is progressing ahead of plan and synergies are being harvested as expected Launch of Acceleration Initiative for customer value and improved profitability Inc
Slide 6: Strategic focus areas for 2024-2026
Strategic focus areas for 2024-2026 Developing Talent & Culture Sharing best practice - and platforms Profitable growth journey Taking the Al leap IIKARNOV GROUP. Q4 2023 PRESENTATION fe
Slide 7: Operational excellence and increased customer value
Operational excellence and increased customer value Key comments Growth mainly driven by online sales Drivers are volume, value proposition and price Strong performance within EHS and T&A Focus on cross-border collaboration Common tech and product teams for shorter time-to-market and improved profit
Slide 8: Office consolidation initiated in Q4 and first Aranzadi product launched
Office consolidation initiated in Q4 and first Aranzadi product launched on the common platform Key comments Stable net sales and improved adjusted EBITA margin due to harvested cost-synergies and good cost control Launch of generative AI solution in France Cross-selling of Aranzadi workflow and LA
Slide 9: Yearly run-rate by category
Yearly run-rate by category Single sales 10 000 team Common tech 7 500 platforms Offices consolidation 5 000 2 500 0 2312 2403 2406 2409 2412 2503 2506 2509 2512 2603 2606 2609 2612 Content Sales Marketing & Customer service Finance and Legal Real Estate Other Q4 2023 PRESENTATION 9
Slide 10: The cost-efficiencies of EUR 10 m will come progressively over the period
The cost-efficiencies of EUR 10 m will come progressively over the period 20 000 17 500 15 000 12 500 10 000 7 500 5 000 2 500 0 Q4-23 Q1-24 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Q3-26 Q4-26 Region South integration Acceleration Initiative Q4 2023 PRESENTATION 10
Slide 11: Magnus Hansson
Magnus Hansson Q4 2023 PRESENTATION 11
Slide 12: Net sales growth is driven by increasing subscription-based sales
Net sales growth is driven by increasing subscription-based sales GROUP Net Sales, SEKm +8% Key comments Strong achieved net sales growth of 8% in 2023 2 500 compared to proforma 2022 figures Increased sales of online solutions across the Group 2 000 Growth driven by user increase, value enhancement
Slide 13: The Group's organic growth is driven by Region North
The Group’s organic growth is driven by Region North GROUP Net Sales, SEKm +6% Key comments Group net sales reached SEK 634 m (proforma 600). 700 Organic growth (constant currency) adjusted for divested 600 legal training business and significant one-off sales was 6.4%. Acquired growth was 66.5%. FX
Slide 14: Strong growth in online sales in Region North
Strong growth in online sales in Region North supported by stable sales in Region South Sales split online/offline, MSEK, Region North Sales split online/offline, MSEK, Region South 400 400 350 350 98 300 300 94 24 250 250 37 200 200 150 150 247 252 266 100 74% 217 77% 100 50 50 0 0 Q4 2022 Q4 2023
Slide 15: Similar recurring revenue in both segments
Similar recurring revenue in both segments Sales split sub/non-sub, MSEK, Region North Sales split sub/non-sub, MSEK, Region South 400 400 350 350 69 54 300 300 17 250 26 250 200 200 150 150 292 295 254 74% 228 77% 100 100 50 50 0 0 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Subscription Non-subscription Subsc
Slide 16: Margin improvement in Q4 from harvested synergies and cost control
Margin improvement in Q4 coming from harvested synergies and good cost control GROUP +15% 180 45% Key comments 140 160 122 40% Adjusted EBITA amounted to SEK 122 m 140 116 (proforma 106) 106 109 35% Group adjusted EBITA margin improved to 19.2% 120 30% (proforma 17.7%) 100 Margin improvement in Q4 c
Slide 17: Region North: Strong organic growth and high-level margin
Strong organic growth and high-level margin REGION NORTH Net Sales, SEKm Adjusted EBITA, SEKm and Key comments +7% margin % +6% Organic growth (constant currency) adjusted for 300 significant one-off sales was 7.7%. Acquired growth was 0.8%. Currency effect was 1.7% 250 120 Comparing quarter include
Slide 18: Region South: Offices consolidated in Q4
Offices consolidated in Q4 – will generate additional synergies from Q1 2024 REGION SOUTH Net Sales, SEKm Adjusted EBITA, SEKm and +5% margin, % +96% Key comments Net sales increased by 5.2% 400 Net sales growth is partly due to solid offline sales 50 and partly due to FX effects of 2.1% 300 Success
Slide 19: Group Functions: Increased costs due to systems and AI investment
Increased costs due to investments in Group-wide systems and AI innovation GROUP FUNCTIONS Adjusted EBITA, SEKm and margin, % Key comments Group Functions consists of the functions taking responsibility for Group wide tasks 25 Underlying cost base excluding ordinary D&A is unchanged in Region North
Slide 20: Solid operating cash flow in Q4 from renewed subscriptions
Solid operating cash flow in Q4 from renewed subscriptions GROUP Adj. operating cash flow, SEKm and adj. cash conversion, % 280 253% 236% Key comments 240 Adjusted operating cash flow amounted to SEK 237 m 200 The operating cash flow was solid with a slight 134% 146% impact from increased interest c
Slide 21: Region South integration ahead of plan, Region North delivering
1 2 Region North delivering Region South integration strong results ahead of plan • Common product and tech teams • Office consolidation completed • DIBkunnskap is now a Scandinavian business • First Aranzadi product launched on the common platform 3 Launch of Acceleration Initiative • Integration a
Slide 22: 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 23: Appendix
Appendix IIIIKARNOV GROUP
Slide 24: Disclaimer
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 reflect Karnov’s curren