Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Aktiespararna (March 2021)
24 slides from Karnov Group Ab's conference presentation, Mar 10, 2021
Slide 1: Aktiespararna: Undiscovered high performers
Aktiespararna Undiscovered high performers Flemming Breinholt, CEO Dora Brink Clausen, CFO 10 March 2021 COMPANY PRESENTATION 1
Slide 2: Flemming Breinholt, Group CEO and Dora Brink Clausen, Group CFO
Flemming Breinholt Dora Brink Clausen Group CEO Group CFO • Appointed in September 2014 • Appointed in January 2014 • Previously with InterMail and • Previously CFO of Coor Denmark with XPonCard Group with over 20 years over 20 years experience in accounting experience as a CEO, CEO of listed and fi
Slide 3: Agenda
Agenda • Business information • Growth strategy • Financials • ESG rating • Q&A COMPANY PRESENTATION 3
Slide 4: Business information
Business information • Leading B2B platform in legal information • History of Karnov Group • Market size • Competitive advantages COMPANY PRESENTATION 4
Slide 5: Karnov – The leading B2B platform
Karnov – The leading B2B platform For legal and tax professionals in Denmark and Sweden – entering 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 CONTEN
Slide 6: Karnov milestones – dating back to 1867
Karnov milestones – dating back to 1867 Legacy dating back to 1867 Creating a Scandinavian market champion • Becomes listed on Nasdaq Stockholm • Acquires Norstedts • JUNO platform launched Juridik from Wolters in Sweden Kluwer • Invests in • Acquires 40% of legal Procurementlink tech provider BELLA
Slide 7: 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 54 for Karnov DK Low annual churn on online products (3% i
Slide 8: Market leading position in Denmark and Sweden
Market leading position in Denmark and Sweden Market overview % of Group Sales (2020) CUSTOMERS Total addressable market SEK 1,500m Law firms 46% 54% Corporates Market growth (2018E-21E) 2.4% Gov. admin Courts Market leader in Denmark and T&A firms Courts Sweden. Municipalities Source: CIL Managemen
Slide 9: Norway our third home market
Norway our third home market Market overview POTENTIAL Market size* CUSTOMERS SEK 650m Law firms DIBkunnskap market leading Corporates provider of digital work flow tools for T&A Gov. admin Karnov Group Norway will launch legal information Courts Courts solution in 2021 T&A firms *Source: Market res
Slide 10: Growth strategy
Growth strategy • Total addressable market is expected to grow • Strategy to capitalise on this and capture the market potential COMPANY PRESENTATION 10
Slide 11: New market opportunities
New market opportunities 3 • Karnov is well positioned to expand into adjacent markets such as Norway (2020), 3 International expansion potential Finland and as well as the Baltics 2 2 Develop/acquire support services: + SEK 200m • Launch of new offline capabilities (e.g. legal process outsourcing,
Slide 12: Well positioned for future growth and margin expansion
Well positioned for future growth and margin expansion Key strategic growth initiatives Key strategic growth initiatives 4 Further geographic expansion 3 Expand into adjacent verticals 2 Move up the data value chain 1 Further strengthen core proposition Key strategic Digitalisation People & culture
Slide 13: Financials: Three medium-term financial targets
Financials 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 COMPANY PRESENTATION 13
Slide 14: A solid year with good growth
A solid year with good growth .... Covid-19 impacted negatively with 1-2 percentage points GROUP 2% Net Sales, SEKm 800 700 600 500 400 300 200 100 715 757 771 0 FY 2018 FY 2019 FY 2020 COMPANY PRESENTATION 14
Slide 15: 86% of sales from subscriptions paid in advance
86% of sales from subscriptions paid in advance Online & subscriptions growing SALES SPLIT Sales split online/offline, % Sales split subscription/non-subscription, % 100% 100% 20% 17% 15% 14% 26% 23% 80% 80% 60% 60% 74% 77% 80% 40% 40% 83% 85% 86% 20% 20% 0% 0% FY 2018 FY 2019 FY 2020 FY 2018 FY 201
Slide 16: Improved margins in line with financial target
Improved margins in line with financial target .... full-year improved by 60 basis points GROUP 0.6 Adjusted EBITA, SEKm and pp margin % 36.8% 37.4% 300 36.6% 250 200 150 100 50 262 279 288 0 FY 2018 FY 2019 FY 2020 COMPANY PRESENTATION 16
Slide 17: Highly cash generating company
Highly cash generating company Strong cash flow in Q1 and Q4 due to invoicing season GROUP Adj. operating cash flow, SEKm and cash conversion, % 300 263% 250 200 177% 168% 173% 156% 150 GROUP 100 66% 50 25% 2% 120 163 18 2 109 170 49 192 0 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3-1
Slide 18: Strong financial performance in 2020
Strong financial performance in 2020 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. temporari
Slide 19: High ESG rating
High ESG rating One of the top companies on the Allbright list in 2020 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 2020 Low environmental impact Activ
Slide 20: Summary
Summary 1 2 Strong results in global pandemic Four new investments in 2020 – Ante ApS, technology bolt-on – Organic growth 2% – LEXNordics AB, new vertical – Adjusted EBITA margin 37.4% – Karnov Group Norway AS, geographical expansion – Leverage well below 3x – DIBkunnskap AS, new vertical in Norway
Slide 21: 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/ COMPANY PRESENTATION 21
Slide 22: Appendix
Appendix COMPANY PRESENTATION 22
Slide 23: Company video
Company video Company Video: https://vimeo.com/322229237 COMPANY PRESENTATION 23
Slide 24: 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