Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Q4 2024 Earnings Presentation
23 slides from Karnov Group Ab's earnings presentation, Feb 18, 2025
Slide 1: Karnov Group Q4 2024 earnings presentation
Pontus Bodelsson, President and CEO Magnus Hansson, Group CFO February 18th, 2025
Slide 2: Pontus Bodelsson, President and CEO
Pontus Bodelsson, President and CEO 2 2
Slide 3: Achieving synergies and advancing our AI sales
Achieving synergies and advancing our AI sales 691 (634) Net sales Net sales (SEKm) (2023) 24% (19%) Adjusted EBITA margin Adjusted (2023) EBITA margin (2.8x) 3.0x Leverage (2023) Leverage 3
Slide 4: Strengthened position, sales and achieved synergies
Strengthened position, sales and achieved synergies ▪ Advancing sales of AI solutions ▪ Adopted by some of Denmark and Sweden’s largest law firms ▪ Poul Schmith/Kammeradvokaten (largest law firm in Denmark) has bought the solutions to all legal employees ▪ New features incl. AI released in Spain and
Slide 5: Common European AI platform
▪ Common European AI platform ▪ Leverage best practice to the benefit of all customers ▪ Agile organisation collaborating to support customers with best-in-class solutions ▪ Develop once and scale to local markets 5
Slide 6: Yearly run-rate by category
Yearly run-rate by category 10 000 8 MEUR 7 500 5 000 2 500 0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Content Sales Marketing & Customer service Finance and Legal Real Estate Other 6
Slide 7: Yearly run-rate by category and split between segments
Yearly run-rate by category and split between segments 10 000 6 MEUR 7 500 31% 43% Region South Region North 5 000 Group 2 500 26% 0 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Q4 2026 Content Sales and Customer service Tech platform Finance and legal Busi
Slide 8: Total cost-synergies of EUR 20m will come progressively
The total cost-synergies of EUR 20 m will come progressively over the period 20 000 17 500 14 MEUR 15 000 12 500 10 000 7 500 5 000 2 500 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2024 2024 2024 2024 2025 2025 2025 2025 2026 2026 2026 2026 Region South integration Acceleration Initiative 8
Slide 9: Region South highlights
▪ Stable sales ▪ Next phase of the integration initiated in Spain ▪ External AI campaign launched ▪ Additional AI features to be launched during H1 2025 ▪ Commercial progress in France ▪ Value proposition organised under three flagship products ▪ AI launched on all flagship products 9
Slide 10: Region North highlights
▪ Strong online sales growth and margin improvement ▪ Growth driver is the public sector in Sweden ▪ AI solution well received and adopted by both law firms and administrations in the public sector ▪ Schultz integration progresses according to plan 10
Slide 11: Q4 and full-year financials
Q4 and full-year financials Magnus Hansson, CFO IIIKARNOV GROUP
Slide 12: Growth driven by online sales in 2024
GROUP NET SALES Numbers in SEKm Growth driven by online sales in 2024 +5% ▪ Solid net sales growth of 5% during the year 2 600 ▪ Strong online sales growth driven by upsales and attracting new customers supplemented by pricing 2 450 ▪ FX impacted growth negatively with -0.3% (SEK -9 m) ▪ Schultz car
Slide 13: Strong growth in Region North
GROUP NET SALES Numbers in SEKm Strong growth in Region North +9% ▪ Group net sales were SEK 691 m (634) 700 ▪ Organic growth (constant currency) was 3.7% and the FX 600 effect was 0.2% 500 327 369 ▪ Organic growth in Region North was 8.0% 364 338 348 ▪ Organic growth in Region South was 0.5% 400 ▪
Slide 14: Continued strong growth in online sales
Continued strong growth in online sales Sales split online/offline, SEKm, Region North Sales split online/offline, SEKm, Region South 400 400 350 350 25 98 89 300 300 250 24 250 200 200 150 20% 296 150 5% 266 280 246 100 74% 77% 100 50 50 0 0 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Online Offline Online Off
Slide 15: Sales split sub/non-sub by region
Sales split sub/non-sub, SEKm, Region North Sales split sub/non-sub, SEKm, Region South 400 400 350 350 16 69 80 300 300 15 250 250 200 200 150 20% 306 150 295 -2% 289 255 100 74% 77% 100 50 50 0 0 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Subscription Non-subscription Subscription Non-subscription 15
Slide 16: Margins improvement from synergies
GROUP ADJUSTED EBITA Numbers in SEKm Margins improvement from synergies +33% 250 45% ▪ Adjusted EBITA amounted to SEK 162 m (122) 40% 200 162 ▪ Group adjusted EBITA margin was 23.5% (19.2) 143 143 35% 132 ▪ Synergies coming through as expected 150 122 30% ▪ Annual run-rate synergies from our initiat
Slide 17: Region North: Another strong quarter
Net Sales, SEKm +19% 350 300 250 200 Another strong quarter 150 100 50 ▪ Organic growth (constant currency) was 8.0% 271 294 275 321 322 0 ▪ Growth driven by online sales of legal information solutions Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 ▪ Carved-out Schultz business contributed with SEK 26 m in
Slide 18: Region South: Sales growth and margin improvement
Net Sales, SEKm +1% 400 300 200 Sales growth and margin improvement 100 ▪ Organic growth (constant currency) was 0.5% 0 364 338 348 327 369 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 ▪ Adjusted EBITA margin 16.2% (12.4) ▪ Synergies coming through according to plan and amount Adjusted EBITA, SEKm and to
Slide 19: Units managing Group wide tasks
Adjusted EBITA, SEKm and margin, % Units managing Group wide tasks 30 The Group functions cover the Group wide tasks such as Group Management, Information Security, Compliance, 25 HR, Investor Relations and Group Finance. 20 ▪ Additional investments of AI in the quarter 15 10 5 26 19 22 23 30 0 Q4 2
Slide 20: Strong adjusted free cash flow in Q4
Adj. free cash flow, SEKm Strong adjusted free cash flow in Q4 220 ▪ Adjusted free cash flow amounted to SEK 210 m (158) 160 ▪ Strong operating cash flow mainly from renewals of annual online subscriptions in Region North 100 ▪ Leverage of 3.0x in line with financial target 40 191 153 158 107 14 210
Slide 21: Strengthened position, sales and achieved synergies
Strengthened position, sales and achieved synergies ▪ Advancing sales of AI solutions ▪ Adopted by some of Denmark and Sweden’s largest law firms ▪ New features incl. AI released in Spain and France ▪ Margin expansion as synergies come through ▪ Achieving synergies from both cost-initiatives ▪ Achie
Slide 22: Thank you
Thank you Q&A MMB W ——e—_—e—EeEeEeEEeEeEseoeE OUP
Slide 23: 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