Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Investor Day (October 2023)
114 slides from Karnov Group Ab's investor day presentation, Oct 5, 2023
Slide 1: Karnov Group Capital Markets Day 5 October 2023
1 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 2: Clearing the path to justice
Clearing the path to justice Driving profitable growth 2 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 3: Agenda
12:00: Clearing the path to justice and driving profitable growth (Pontus Bodelsson, Group CEO) 12:40: Financial update (Magnus Hansson, Group CFO) 13:10: Q&A with Group CEO and Group CFO 13:25: Break 13:40: Region North update (Alexandra Åquist, Region North CEO) 14:10: Deep-dive Region South (Guil
Slide 4: 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
Slide 5: Clearing the path to justice
Clearing the path to justice Driving profitable growth Pontus Bodelsson President and CEO, Karnov Group 5 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 6: The value we offer and the growing demand
The value we offer and the growing demand 6 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 7: Our purpose
Our purpose Clearing the path to justice We bring trust to European societies and enable our customers to make better decisions. Faster. 7 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 8: How Karnov enables Better decisions, faster
How Karnov enables “Better decisions, faster” PRACTITIONERS PUBLIC CONTENT SOURCES The Law Providing knowledge Law firms Accounting and audit firms Preparatory work for legal challenges Case law PUBLIC PROPRIETARY CONTENT Case law selected by our Administration, Courts experts municipalities Comment
Slide 9: The Karnov DNA
The Karnov DNA Efficiency and certainty ▪ 200 years of experience as a knowledge provider to Supporting our customers in European professionals their challenges of today and their opportunities of ▪ Continuous innovation adds value to our customers tomorrow 9 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOB
Slide 10: A growing demand
A growing demand Created by an increasing complexity in society Twice as many new laws were published in 2022 compared to 2012 7 out of 10 lawyers predict that the need for legal services will grow 8 out of 10 lawyers foresee more complexity due to globalisation 10 KARNOV GROUP CAPITAL MARKETS DAY 5
Slide 11: Our local markets
Our local markets Net sales (LTM Q2 2023) Net sales (LTM Q2 2023)* 1.1 1.3 bSEK bSEK TAM TAM 11 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023 2.1 bSEK 15.3 bSEK Source: Company information Note: *) Including proforma numbers for Region South in 2022.
Slide 12: Same business model across Europe
Same business model across Europe Different market dynamics and positions – a schematic overview Local / Vertical factors France Spain Sweden Denmark Total Addressable Market Relative market position Recurring online sales Customer retention (LIS) Strengthen value Integration & improved Operational
Slide 13: Financial profile in summary
Financial profile in summary Total addressable market Net sales High share of subscription-based sales Low individual customer risk 17.4 bSEK 2,388 mSEK 85% <4% 85% of sales LTM Q2 2023 come LTM Q2 2023 from subscriptions paid annually in 10 largest customers represent From 2.1 bSEK to 17.4 bn SEK a
Slide 14: Investment case and updated financial targets
Investment case Updated financial targets Supporting legal professionals with mission- 4-6% Organic growth: (medium term) critical proprietary content that delivers efficiency and certainty Strong positions in local markets with stable Adjusted EBITA ≥25% number of customers margin: (medium term) Pr
Slide 15: Excel and Grow
Excel and Grow Through 6 strategic initiatives for 2024 - 2026 Gaining deep customer insights Creating global platforms for supreme customer value and for scalability efficiency Staying locally focused Forming a common culture for absolute relevance and for execution, retention and certainty attract
Slide 16: Gaining deep customer insights
Gaining deep customer insights For supreme customer value and efficiency Customer centricity: “I have the customer in my heart and mind in everything I do” Supporting our customers in their challenges of today and their opportunities of tomorrow Deepened segment expertise ▪ Improving customer value
Slide 17: Staying locally focused
Staying locally focused For absolute relevance and certainty Certainty made possible through proprietary content ▪ Local content is crucial 1,000 ▪ We are a European local player 500 ▪ +7,000 local subject matter experts ▪ High quality and strong brand building Local content is an absolute prerequis
Slide 18: Optimising product portfolio
Optimising product portfolio M&A and AI Balanced M&A activities ▪ No big tickets for the time being while focused on integration ▪ Complete our verticals and include Legal Tech AI both for customers and for internal Karnov use ▪ A part of Karnov’s way of working for several years ▪ Acquired Ante in
Slide 19: AI adds more customer value
AI adds more customer value Still big demand for legal professionals AI an opportunity for improved profitability also for Karnov ▪ New services making our customers more efficient ▪ Increasing customer value - increasing prices Perspective on new ways of working for lawyers and legal professionals
Slide 20: Creating global platforms
Creating global platforms For scalability Local content on Group wide platforms ▪ Common products in our Group but local content Group level business systems and content standards ▪ Reducing complexity and securing quality and efficiency Sharing products across the Group ▪ Workflow tools from Norway
Slide 21: Forming a common culture
Forming a common culture CUSTOMER CENTRICITY COLLABORATIVE COMMUNITY CURIOSITY AND KNOWLEDGE For execution, retention, attraction and business success A strategy without a supporting culture is weak. But a culture without a strategy has no goal. TRUST AND OPENNESS ▪ Attract and keep the best talent
Slide 22: Madrid, Recoletos
Madrid, Recoletos, 5/6 2023 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 23: Madrid, Las Rozas
Madrid, Las Rozas, 6/6 2023 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 24: Pamplona
Pamplona, 7/6 2023 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 25: Paris
Paris, 14/6 2023 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 26: Burgos
Burgos, 20/6 2023 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 27: Burgos, Valencia
Burgos, 20/6 Valencia, 22/6 20232023 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 28: Copenhagen
Copenhagen, 26/6 2023 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 29: Oslo
Oslo, 6/9 2023 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 30: Stockholm
Stockholm, 13/9 2023 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 31: Building on experience
Building on experience For integration and harvesting of synergies We have done it before, successfully: 1. The current Spanish team has integrated Lamy Liaisons (FR) on to the LA LEY (ES) IT platform 2. Karnov acquired from Wolters Kluwer in Sweden 2018 ▪ Successfully integrated two competing organ
Slide 32: The merger and creation of the new Norstedts Juridik
The merger and creation of the new Norstedts Juridik Profitability in Sweden 2019 - 2022 210 140 70 135 144 169 203 0 2019 2020 2021 2022 EBITDA (mSEK) 32 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 33: The Region South acquisition
The Region South acquisition 33 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 34: A new merger based on experience
A new merger based on experience Four examples of actions in Spain based on learnings 1. Keeping legacy brands to secure goodwill 2. Prioritise customer data quality – supporting the synergy case 3. A balanced approach to tech and content migration 4. Prioritise aligning corporate culture to foster
Slide 35: The harvesting of synergies has started in Spain
The harvesting of synergies has started in Spain A first high-level introduction, followed by a deep dive Cost-synergy yearly run-rate by category (10 mEUR ) Yearly run-rate synergies by category Content Sales Marketing & Customer service Finance and Legal Real Estate 35 KARNOV GROUP CAPITAL MARKETS
Slide 36: Winning in Europe
Winning in Europe What we saw in South and what we are looking for Aranzadi LA LEY (ES) and Lamy Liaison (FR) ▪ Outstanding proprietary content in the civil law system ▪ Great legacy and strong brands ▪ Spain: General market leader ▪ France: Market leader in the labour law segment ▪ Opportunity to i
Slide 37: Winning the Karnov way
Winning the Karnov way Replicating the Karnov Group recipe for success Content ▪ Local content is crucial to further strengthen customer value, efficiency and certainty Tech ▪ Develop based on local insights, best practice and sharing within the Group. Locally focused customer value on global platfo
Slide 38: We have done it before, we are doing it, we will do it again
We have done We are doing it We will do it it before now again 38 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 39: Key take aways: Karnov as an investment
1. Legacy matters - the market leader for 200 years due to proprietary content that delivers Key take aways certainty 2. Our services are mission critical for our customers Karnov as an 3. Our products represents a small percentage of our customers’ total operating cost investment The result: ▪ a bu
Slide 40: Introduction: Magnus Hansson, Group CFO
Introduction Magnus Hansson Group CFO ▪ Since June 1st 2023 ▪ CFO, Lime Technologies AB (publ), 2015-2022 ▪ SaaS ▪ Nasdaq Midcap, Stockholm ▪ Acquisitions, integrations 40 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 41: Financial update
Financial update Magnus Hansson Group CFO 41 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 42: Resilient customer segments, low single customer dependence
Resilient customer segments Low single customer dependence Legal Tax & Accounting % of sales1) % of sales from top customers1) 40% 4% Practitioners Major international Legal practitioners accounting and audit ranging from major law firms as well as local firms to sole practitioners 96% firms Top 10
Slide 43: Net sales
Net sales Online sales are growing - printed material considered premium spin-offs 878 mSEK 2 286 mSEK 2 388 mSEK 17% 20% 20% 83% 80% 80% 2021 2022*) LTM Q2 2023*) Online Offline 43 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023 Source: Company information Note: *) Including proforma numbers for Re
Slide 44: Net sales by segment
Net sales by segment Offline / Online net sales Region North 878 mSEK 999 mSEK 1 054 mSEK Region North 17% 16% 15% ▪ Steady growth in online net sales mainly due to ▪ Low churn (approximately 2%) 83% 84% 85% ▪ Annual price increases and increasing number of users LTM ▪ Legal training business in Swe
Slide 45: Net sales by segment: seasonality
Net sales by segment Balanced seasonality in offline sales (mSEK) Offline sales – Region North 60 Region North 40 ▪ One off, offline, sales of school publications in Q3 2022 53 52 50 of 18 mSEK 20 37 21 20 ▪ Seasonality following start of school term 0 Q1 Q2 Q3 Q4 Q1 Q2 2022 2022 2022 2022 2023 2023
Slide 46: High portion of recurring revenues
High portion of recurring revenues Stable growth in recurring revenues Subscription 100% 95% Recurring revenue 88% 90% ▪ Profile has changed slightly with the acquisition of Region South 85% 84% 85% ▪ High retention rates: ▪ Region North 97-98% 80% ▪ Region South 90% 75% 70% 2021 2022*) LTM Q2 2023*
Slide 47: Adjusted EBITDA
Adjusted EBITDA Stable EBITDA with clear ambition to improve 463,5 492,2 Region North 46,7% 46,4% • EBITDA improvement in Region North related to North growth, product mix and operation excellence. 2021 2022 LTM Q2 2023 Adj. EBITDA Adj. EBITDA margin Region South • Despite large integration in Regio
Slide 48: Adjusted EBITA
Adjusted EBITA Adjusted EBITA benefits from increasing proportion of online sales 408,0 428,0 40,8% 40,6% North 2021 2022 LTM Q2 2023 Region North Adj. EBITA Adj. EBITA margin • Slight margin decrease in LTM Q2 2023 is related to increased D&A of development costs in Region North. 94,0 99,0 7,3% 7,4
Slide 49: Adjusted EBITA seasonality
Adjusted EBITA Seasonality 45,1% 41,0% 43,2% 38,7% 38,2% 39,8% Region North 115 108 97 120,0 103,0 North 88 • Naturally follow seasonality of Offline sales Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Ad. EBITA Adj. EBITA Margin Region South 9,7% 8,5% 6,6% 11,3% 7,2% • Region South EBITA margin d
Slide 50: Operating expenses
Operating expenses New group operating expense profile mSEK 2021 2022*) LTM Q2 2023*) Net sales 878.1 2 286.3 2 388.1 Goods for resales -138.7 -356.8 -366.4 % of sales 15.8% 15.6% 15.3% Employee benefit expenses -279.9 -985.9 -1 029.8 Operating expenses % of sales 31.9% 43.1% 43.1% • Goods for resal
Slide 51: Karnov Group decreases leverage rapidly through strong cash conversion
Karnov Group decreases leverage rapidly through strong cash conversion from subscription-based sales Adj. operating cash flow (Q1 2021 – Q2 2023) Net debt to adjusted EBITDA (Q1 2021 – Q2 2023) 253% 236% 4 3,6 3,6 3,4 3,5 3,0 2,9 3 2,8 134% 261 121% 2,5 214 210 98% 2 157 46% 1,5 41% 104 24% 1,0 0,9
Slide 52: Supporting growth and shareholder returns
Supporting growth and shareholder returns Debt reduction Yes Organic investments Leverage in Investment excess of No Yes opportunity target and Free cash flow no that exceeds immediate hurdle rate? investment? M&A Excess No Share buybacks Share price greater than fair value? Yes Dividends 52 KARNOV
Slide 53: Accelerated growth through M&A
Accelerated growth through M&A Building on experiences from multiple acquisitions and integrations 1 2 3 Geographical expansion Legal Tech Adjacencies Acquisitions of leading core LIS Acquisitions of automation and providers to enter new process optimisation tools that Acquisitions of proprietary ge
Slide 54: Financial rationale for Region South
Financial rationale for Region South Significant shareholder value through harvesting of synergies and future cash flow 10000 9000 8000 • Karnov paid an 7000 EV/EBITDA multiple of 7 including post-synergies 6000 and cost-to-achieve for 5000 Region South. 4000 • Integration project 3000 target EBITA
Slide 55: Financial profile in summary
Financial profile in summary Total addressable market Net sales High share of subscription-based sales Low individual customer risk 17.4 bSEK 2,388 mSEK 85% <4% 85% of sales LTM Q2 2023 come LTM Q2 2023 from subscriptions paid annually in 10 largest customers represent From 2.1 bSEK to 17.4 bSEK adv
Slide 56: Financial targets and ESG strategy
Financial targets and ESG strategy 56 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 57: Karnov Group clears the path to justice by contributing to a robust legal system
Karnov Group clears the path to justice by contributing to a robust legal system and democratic principles ▪ Impact led approach to sustainability ▪ Contributing to a robust legal ▪ An ESG strategy focused on creating long-term sustainable value, ▪ An ESG framework 57 KARNOV GROUP CAPITAL MARKETS DA
Slide 58: Financial targets
Financial targets Updated financial targets to reflect the new European Karnov Group ADJUSTED EBITA DIVIDEND POLICY NET SALES GROWTH CAPITAL CAPITALSTRUCTURE STRUCTURE MARGIN Karnov intends to distribute available cash Karnov aims to achieve The objective is that net flow after consideration an annu
Slide 59: Key take aways
▪ Updated financial targets ▪ Reaching an even stronger free Key take aways cash flow by harvesting synergies in Region South ▪ Resilient and growing customer, subscription-based sales 59 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 60: Q&A
Q&A 60 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 61: Break
Break 61 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 62: Introduction: Alexandra Åquist, CEO Region North
Introduction Alexandra Åquist CEO Region North ▪ CEO Norstedts Juridik 2020-2023 ▪ Entrepreneurial leader with a strong foundation in sales, business development, and management ▪ Passionate about fostering innovation, driving growth, cultivating client relationships ▪ Diverse industry background en
Slide 63: Deep-dive into Region North
Deep-dive into Region North A sustainable, profitable growth case Alexandra Åquist CEO Region North 63 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 64: The ambition for Region North
The ambition for Region North Continuous profitable and sustainable growth • Focus on operational excellence • With a clear eye on innovation 64 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 65: Market dynamics
Market dynamics KARNOV GROUP DENMARK NORSTEDTS JURIDIK Total market legal information services and software Total market legal information services and software market Market size market estimated at 800 mSEK* estimated at 850 mSEK* Market Growth outlook estimated at 2.5% per year* Growth outlook es
Slide 66: Region North - long history, strong local brands
Region North - long history, strong local brands KARNOV GROUP DENMARK NORSTEDTS JURIDIK Founded in 1867 and has remained the primary legal Founded in 1823 and has remained the primary legal History information service provider in DK ever since information service provider in SE ever since FTEs 162 9
Slide 67: Stable business with profitable, organic growth
Stable business with profitable, organic growth 67 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 68: Resilient business regardless of economic cycle
Resilient business regardless of economic cycle Subscription-based service with significant barriers to entry Subscription, mSEK 800 High customer satisfaction NPS of 50 for Region North 700 600 Mission critical service with significant 500 barriers to entry 400 735 662 Low annual churn on online 30
Slide 69: Financials are on a steady rise
Financials are on a steady rise Making planned post-merger efficiencies come true +5,8% +10,7% CAGR CAGR Net Sales, mSEK Adjusted EBITDA, mSEK 900 500 800 700 400 600 300 500 855 10% 400 735 770 14% 9% 722 200 300 Continuous growth 200 100 100 0 0 2019 2020 2021 2022 2019 2020 2021 2022 69 KARNOV GR
Slide 70: The successful integration of Norstedts Juridik
The successful integration of Norstedts Juridik Experiences and learnings Merger of Norstedts Juridik ▪ Common corporate culture was vital for a successful Culture integration Content ▪ Content was a sub-track in the Tech workstream. Resulting in more focus on IT platform migration than and tech on
Slide 71: New opportunities
New opportunities 71 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 72: Great potential in existing target groups: Municipalities
Great potential in existing target groups Municipalities SE SE DK Net Sales, mSEK Market share, % of estimated TAM Net Sales, mSEK 20 25% 18 16 20% 14 5 12 15% 10 4 18,3 23% 8 10% 3 14,5 18% 6 11,6 14% 2 4 7,5 5% 9% 1 2,1 2 0,013 0 0% 0 2019 2020 2021 2022 2019 2020 2021 2022 2021 2022 72 KARNOV GRO
Slide 73: Great potential in existing target groups: Corporate
Great potential in existing target groups Corporate DK Net Sales, mSEK Market Share, % firms Corporate Development 120 2012 2021 100 1.187 80 (32%) 60 107,8 2.542 95,3 96 40 85,1 (68%) 1.200 1.900 Estimated potential 20 +58% 0 Corporate 2019 2020 2021 2022 73 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOB
Slide 74: Great potential in small law firms
Great potential in small law firms Our proprietary content is a competitive advantage Covering all top 20 large law firms Net Sales, mSEK Market Share, % of small law firms 45 40 35 30 1.465 (38%) Present in all 25 Top 20 20 38,1 Law Firms 35 2.386 15 31,7 23,9 (62%) 10 Estimated potential 5 0 2019
Slide 75: Solid product portfolio for future profitable growth
Solid product portfolio for future profitable growth Superior Brand Position Cross market product leverage Consolidating Regional Capabilities Incorporating AI 75 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 76: Operational excellence
Operational excellence 76 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 77: Unlocking value by regional operational efficiency
Unlocking value by regional operational efficiency Regional product organisation Focus on customer Focus on and user insights profitability Coordinate and streamline regional Local go-to-market production 77 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 78: Our emerging ventures
Our emerging ventures 78 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 79: Emerging ventures successful in growth
Emerging ventures successful in growth Net Sales, mSEK 160 Commercial plans 140 120 ▪ Expand DIB into Denmark and consolidate Karnov’s T&A offering in Scandinavia 100 80 ▪ Expand EHS offering in Europe, with Notisum in 144 Sweden and Denmark, Echoline in France and 60 103 the common initiative Sheqa
Slide 80: Key take aways
• Profitable growth and catching new opportunities • Unleashed potential in the Key take aways Scandinavian market in existing and new segments with current product portfolio and new offerings ▪ New organisation for the foundation of future growth and expansion 80 KARNOV GROUP CAPITAL MARKETS DAY 5
Slide 81: Introduction: Guillaume Deroubaix, CEO Region South
Introduction Guillaume Deroubaix CEO Region South ▪ Strong experience in legal information solutions and legal software solutions: ▪ Former Content Manager at Wolters Kluwer and at Lexbase ▪ France Editorial Director, EMEA Business Development Director, MENA Managing Director, France COO at LexisNex
Slide 82: Deep-dive into Region South
Deep-dive into Region South An integration based on Karnov Group’s know-how Guillaume Deroubaix CEO Region South 82 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 83: Market dynamics
Market dynamics SPAIN FRANCE Market size 400 mEUR 1,000 mEUR Market growth 2-3.5% per year 2-3% per year #1 in labour law vertical, #2 in corporate market, #3 in the Competitive position Clear #1 overall market Composed by local and international legal publishers with a heritage in print/online info
Slide 84: Region South: long history strong local brands
Region South: long history strong local brands Baseline Region South 955 121 mEUR 14% Dec 2022 Totals FTEs Revenue EBITDA % Founded in 1929 in Navarra Founded in 1852 with “El Consultor de los Lamy was born in 1892, Liaisons was History Ayuntamientos” founded in 1945 Leading player and premium brand
Slide 85: Strategic rationale for acquisition
Strategic rationale for acquisition Taking the Karnov Group success story further into Europe Shared legacy and values Customer-centric innovation A coherent extension Karnov Group has a strong legacy Together we will create a Region South acquisition is a of over 200 years in Scandinavia. customer
Slide 86: Driving a successful transformation & integration
Driving a successful transformation & integration This is who we are: Pontus Bodelsson Guillaume Deroubaix Palmira Andrade Vicente Sanchez Magnus Svernlöv Pepe Medina Anne Nørvang Hansen Charlotte Arup Magnus Hansson CEO Karnov Group CEO Region South France Country Spain Country Integration Lead CTO
Slide 87: Integration based on Karnov Group's know-how
Integration based on Karnov Group’s know-how EXPERIENCES ACTION Merger of Norstedts Juridik Aranzadi LA LEY ▪ Common corporate culture was vital for a ▪ Forming a common corporate culture and Culture successful integration related values has been highly prioritised ▪ Two separate workstreams led by
Slide 88: What has happened in Region South so far?
What has happened in Region South so far? Since we got the keys on December 2022 ▪ Forming a common corporate culture and related values has been highly prioritised, focusing on early alignment and fostering collaboration. ▪ Kick-off of the integration and transformation programs by country: ▪ PMI (
Slide 89: Spain: Cost-synergies by category
Spain: Cost-synergies by category We will harvest annual cost-synergies of 10 mEUR on run-rate EBITDA with full effect in December 2026 De-duplicating activities and Consolidation of the offices licences REAL ESTATE Business Process Re-engineering Facility management renegotiation Real Estate and au
Slide 90: Spain: Cost-synergies effects
Spain: Cost-synergies effects Yearly run-rate by category Single sales 10 000 team Common tech 7 500 platforms Offices consolidation 5 000 2 500 0 Q3-23 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 Content Sales Marketing & Customer service Finance and Legal Real Est
Slide 91: Spain: Cost-synergies and cost-to-achieve timeline
Spain: Cost-synergies and cost-to-achieve timeline Cost-synergies of 7.5 mEUR by the end of 2024 and 10 mEUR by the end of 2026, at a cost of 24 mEUR 10000 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Q1-23 Q2-23 Q3-23 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 S
Slide 92: Spain: What is coming? Overview of 23-24
Spain: What is coming? Overview of ‘23-‘24 2023 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Culture harmonisation (purpose, values, principles & priorities) Reorganise & Post-integration Pre-integration single organisation harmonise organisation implemented Operations processes, tools and organisation alig
Slide 93: Spain: Mid-term ambition
Spain: Mid-term ambition Consolidate and reinforce the #1 position, as the reference brand ▪ Increase the EBITDA by 10 mEUR by December 2026 ▪ Win the market through a holistic and innovative ecosystem (Software solutions, Content & Data leveraged by AI) ▪ 100% customer centric ▪ Optimised synergies
Slide 94: France: What is coming? Overview of 23-24
France: What is coming? Overview of ‘23- ‘24 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Culture harmonisation (purpose, values, principles & priorities) Reorganise & harmonise Reshape the organisation to create customer centric culture Operations processes, tools and organization alignment Decoupling from Wo
Slide 95: France: Mid-term ambition
France: Mid-term ambition Unleashing the growth potential ▪ Deliver the highest growth in the market ▪ Provide best-in-class legal information and services platforms combining high-quality content, data and technologies ▪ 100% customer centric ▪ Become the preferred provider and brand in the market
Slide 96: Key take aways
▪ Focus on improving the EBITDA margin in Spain Key take aways ▪ Unleashing the growth potential in France ▪ Share and benefit from best practice and strong products within Karnov Group 96 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 97: Q&A
Q&A 97 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 98: Introduction: Anne Nørvang Hansen
Introduction Anne Nørvang Hansen Group Head of Content Strategy & Quality ▪ Part of Karnov Group since 1996 and member of the Group Management Team since 2008 ▪ My experience is in ▪ Leading digital transformation of content and products ▪ Developing content, products and business models ▪ Complianc
Slide 99: Taking the AI leap
Taking the AI leap The AI game is a content game Anne Nørvang Hansen Group Head of Content Strategy & Quality 99 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 100: Core asset in the content eco-system
Core asset in the content eco-system Proprietary, trustworthy, local content augmented by technology CONTENT ECO-SYSTEM PRODUCT OFFERING CUSTOMER USE CASES CUSTOMERS’ GOALS Workflow tools Compliance Authored Public content, content protected by • Make decisions with sources copyrights certainty 18M
Slide 101: Generative artificial intelligence in our world
Generative artificial intelligence in our world The sub-set of generative artificial intelligence that is large language models Generative artificial intelligence Large language models Software that generates content ChatGPT, Pi and others Natural language processing tasks Chat/prompt based general
Slide 102: New legal AI assistant – launched in Spain
New legal AI assistant – launched in Spain 102
Slide 103: Multiple potential customer use cases
Multiple potential customer use cases Opportunities for new customer value leaps Legal research Time saving efficiencies Contract drafting and negotiation ▪ Take on more work ▪ Up skill employees ▪ Better work-life balance Document analysis Quality improvements ▪ Take on new work Legal strategies an
Slide 104: How we take the leap: Karnov's AI strategy
How we take the leap Karnov’s AI strategy SOURCING MODEL PRODUCT OBJECTIVES COMMERCIAL OBJECTIVES Anchored in trusted content Integrate AI-based features in digital CORE VALUE Content Online product solutions CREATION management Transparency by design Develop new AI-based solutions, In-house AI capa
Slide 105: Selected AI initiatives
Selected AI initiatives Legal AI assistant K+ Increased Anonymisation of Analysis of real Smart Chat relevance of personal information estate data search results KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023 105
Slide 106: Analysis of real estate data
Analysis of real estate data 106 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 107: Key take aways
• We have a history of capturing value from technology leaps Key take aways • Local content is our core asset and indispensable for AI • We have launched AI solutions – and more are on the way 107 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 108: Q&A
Q&A 108 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 109: Introduction: Jan Ullerup, Group CTO
Introduction Jan Ullerup Group CTO ▪ 15 years in Telecom, incl. VP of Architecture at TDC Group ▪ Working with Tech Strategy & Architecture in Karnov since 2019, North & Group CTO since 2022 109 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 110: Q&A
Q&A 110 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 111: Summary of the day by Pontus Bodelsson
Summary of the day by Pontus Bodelsson 111 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 112: Key take aways: Karnov as an investment
1. Legacy matters - the market leader for 200 years due to proprietary content that delivers Key take aways certainty 2. Our services are mission critical for our customers Karnov as an 3. Our products represents a small percentage of our customers’ total operating cost investment The result: ▪ a bu
Slide 113: Thank you
Thank you See you on November 8th for the Q3 reporting 113 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023
Slide 114: Karnov Group Capital Markets Day 5 October 2023
114 KARNOV GROUP CAPITAL MARKETS DAY 5 OCTOBER 2023