Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Carnegie Small & Mid Cap Seminar 2019
21 slides from Karnov Group Ab's conference presentation, Sep 3, 2019
Slide 1: Carnegie Small & Mid Cap Seminar
Chapter 5 Flemming Breinholt, President and CEO Carnegie Small & Mid Cap Seminar 3 September 2019
Slide 2: Today's Topics
Today’s Topics Introduction to Karnov Group Strengths Latest performance Recent announcement of new major product Status summary 2
Slide 3: 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 4: Company Video: Understanding our customers' needs
Company Video: Understanding our customers’ needs https://vimeo.com/322229237 4
Slide 5: Introduction to Karnov
Introduction to Karnov Platform providing relevant and actionable legal, Founded in 1924 with headquarters in Copenhagen tax and accounting information 251 employees2) and >1,500 specialised authors3) Over 60,000 active users1) Karnov’s key products are largely digital4) Attractive financial
Slide 6: Today's Topics
Today’s Topics Introduction to Karnov Group Strengths Latest performance Recent announcement of new major product Status summary 6
Slide 7: Unique and proprietary content developed over decades
Unique and proprietary content developed over decades Mission critical data, enhanced through leading author base and in-house editorial staff ensuring high quality and relevance Authored content providing In-house editorial staff ensuring Public data sources in-depth comments and analysis relevant
Slide 8: Online platform with a powerful suite of integrated efficiency tools
Online platform with a powerful suite of integrated efficiency tools Content Digitalised library dating back to 1867 Over 275,000 notes and commentaries Over 700,000 linked documents Advanced search functionalities Possibility to search vertically or horizontally within the database View t
Slide 9: Diverse and loyal blue-chip customer base
Diverse and loyal blue-chip customer base A diverse set of blue-chip customers Stable growth in active user base Legal Tax & Accounting % of sales1) Number of active users2) >60k 42% Practitioners Norstedts Juridik users ~36k ~38k Legal practitioners ranging Major international from major law firms
Slide 10: Resilient business with high visibility provided by must-have nature
Resilient business with high visibility provided by must-have nature Competitive advantages Mission critical service Strong integration into core value-generating workflows for legal and tax professionals High NPS score Net Promoter Score of 50 for Karnov DK Low annual churn on online products (2% i
Slide 11: Subscription-based service leading to high visibility and high confidence on earnings
Subscription-based service leading to high visibility and high confidence on earnings Sales visibility breakdown (2018) Sales from renewals 37% 18% 8% 10% Contracted sales 46% 19% 100% 46% Contracted sales Net subscription Net subscription Net subscription Non-subscription Total start of year renewa
Slide 12: Today's Topics
Today’s Topics Introduction to Karnov Group Strengths Latest performance Recent announcement of new major product Status summary 12
Slide 13: Steady sales growth in Q2
Steady sales growth in Q2 GROUP GROUP Net Sales, SEKm Key comments +4.4% 200 Steady net sales growth of 4.4% Q2 normally weakest quarter due to seasonality in non-subscription sales 150 Organic growth of 3% in line with expectations 100 Organic growth driven by online sales, partly offset by a decli
Slide 14: Continued profitability improvement
Continued profitability improvement Seasonality in Q2 margins GROUP Adjusted EBITA and margin, SEKm and % Key comments 90 +9% 80 Continued margin improvement with 9% 70 growth in adjusted EBITA 60 Improvements due to higher sales, better 42% product mix and good cost control 50 39% 40% 40 33% 34% 35
Slide 15: Continued focus on driving online-based sales
Continued focus on driving online-based sales Increased share of subscription-based and online sales GROUP Sales split subscription/non-subscription, % Sales split online/offline, % 100% 100% 10% 9% 20% 17% 18% 24% 80% 80% 60% 60% 80% 83% 76% 90% 91% 40% 40% 82% 1 pp increase in 3 pp increase in 20%
Slide 16: Performing in line with financial targets
Performing in line with financial targets Growth Profitability Capital structure Annual organic net sales growth of A higher adjusted EBITA margin Net debt to adjusted EBITDA 3-5% in the medium term, in the medium term. of no more than 3.0. This level may supplemented by selective acquisitions. temp
Slide 17: Today's Topics
Today’s Topics Introduction to Karnov Group Strengths Latest performance Recent announcement of new major product Status summary 17
Slide 18: Start of roll-out of Juno in Sweden
Start of roll-out of Juno in Sweden Key comments One organisation operating from 1 May Over 250,000 documents migrated to JUNO from the separate platforms of Norstedts Juridik and Karnov Group Sweden ”Teaser campaign” for JUNO in June Extensive product testing during summer Onboarding of customers f
Slide 19: Summary of first six months 2019
Summary of first six months 2019 1 3 H1 as communicated at listing – Organic growth of 3% Continued strong customer satisfaction – Adjusted EBITA margin up 1.9 pp in both DK and SE – Leverage below 3x 2 4 JUNO ready to be rolled out in H2 Solid capital structure created 5 Good conditions to grow bus
Slide 20: Q&A Better decisions, faster
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/ 20
Slide 21: Karnov Group
Karnov Group Flemming Breinholt, President and CEO | Carnegie | 3 September 2019 21