Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Q3 2020 Earnings Presentation
21 slides from Karnov Group Ab's earnings presentation, Nov 5, 2020
Slide 1: Third quarter 2020
Third quarter 2020 Q3 Flemming Breinholt, CEO and Dora Brink Clausen, CFO | 5 November 2020 Q3 2020 PRESENTATION 1
Slide 2: Q3 highlights and operational update
Q3 highlights and operational update Flemming Breinholt Q3 2020 PRESENTATION 2
Slide 3: Financial highlights
Financial highlights A solid quarter with high margins and seasonal less Covid-19 effect +2% +3% 39.9 % 2.4 Net sales Organic growth Adjusted EBITA Leverage margin Q3 2020 PRESENTATION 3
Slide 4: Operational highlight
Operational highlight Future Lawyer Survey - largest report of its kind in Scandinavia Key comments Purpose to drive the legal sector in Sweden and Denmark forward Focuses on three areas: Transformation, Innovation and Motivation Over 3,500 respondents making the report the largest of its kind in Sc
Slide 5: New features launched in Denmark
New features launched in Denmark Key comments to Q3 Growth according to expectations and high adjusted EBITA margin Improved preparatory work with direct links and upgraded online library Improved efficiency and certainty for users Kaius – a new platform for law students New collaboration with Lexof
Slide 6: Solid performance in Sweden
Solid performance in Sweden Key comments to Q3 6% organic growth driven by good online sales, upselling to existing customers and sales to new customers Continued enhancements to JUNO Strengthened customer centricity with improved customer service Classroom training still held virtually EHS solution
Slide 7: Covid-19
Covid-19 Key comments on the Covid-19 pandemic Continue to follow regulations and recommendations High activity on our special Covid-19 information sections The prolonged pandemic impacts offline sales, SME market demand and also delay decision-making on new business Seasonality in Covid-19 impact T
Slide 8: Financial development
Financial development Dora Brink Clausen Q3 2020 PRESENTATION 8
Slide 9: Another solid quarter
Another solid quarter .... with improved, high margin GROUP Net Sales, SEKm +2% Adjusted EBITA, SEKm and margin % 300 250 100 200 90 80 38.9% 39.9% 150 70 60 50 100 40 30 50 20 190 193 10 74 77 0 0 Q3 2019 Q3 2020 Q3 2019 Q3 2020 Q3 2020 PRESENTATION 9
Slide 10: Continued sales growth
Continued sales growth … due to solid online performance and less Covid-19 effect GROUP Net Sales, SEKm Key comments +2% Net sales growth of 1.7% of which organic growth 200 was 3.0%, currency effects was -1.6% and acquired growth was 0.3% 150 Covid-19 impact estimated to <1 % on overall sales, esti
Slide 11: High stable margin
High stable margin GROUP Adjusted EBITA and margin, SEKm and % Key comments 90 80 Adjusted EBITA improved by 4 % to SEK 77 m (74) 70 60 Adjusted EBITA margin improved to 39.9 % 42% 42% (38.9), due to higher sales and process 50 40% 39% 40% 34% 35% 36% optimisation 40 31% As a consequence of Covid-19
Slide 12: Online & subscriptions growing
Online & subscriptions growing SALES SPLIT Sales split online/offline, % Sales split subscription/non-subscription, % 100% 100% 20% 16% 14% 22% 80% 80% 60% 60% 78% 80% 40% 40% 84% 86% 20% 20% 0% 0% Q3 2019 Q3 2020 Q3 2019 Q3 2020 Online Offline Subscription Non-subscription Q3 2020 PRESENTATION 12
Slide 13: Strong results in Denmark
Strong results in Denmark DENMARK Adjusted EBITA, SEKm and % Net Sales, SEKm Key comments -2% 2 Organic growth was 1%, however currency effects pp impacts with -3% 100 Covid-19 continues to impact offline sales, SME 80 50 market demand and delays on decision-making in 40 new business 60 44% 43% 44%
Slide 14: Continued good performance in Sweden
Continued good performance in Sweden SWEDEN Net Sales, SEKm Adjusted EBITA, SEKm and margin, % Key comments +7% +-0 6% organic growth driven by good online sales, 100 upselling to existing customers and sales to new 50 43% customers 80 41% 34% 35% 35% Good performance in EHS solution 40 29% 29% 30%
Slide 15: Leverage well below financial target
Leverage well below financial target GROUP Adj. operating cash flow, SEKm and cash conversion, % 200 177% Key comments 168% 173% 156% Adjusted operating cash flow low as expected due 150 to seasonality Adjusted operating cash flow YTD is up SEK 35 m 100 66% Cash flow impacted negatively by strong ti
Slide 16: Summary of the third quarter
Summary of the third quarter 1 2 Strong results, less Covid-19 effect – Organic growth 3% New launches in Denmark – Adjusted EBITA margin 39.9% – Leverage well below 3x 3 Full year negative impact of Covid- 19 effect on top-line growth is estimated to approximately 2 pp Q3 2020 PRESENTATION 16
Slide 17: Q&A
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/ Q3 2020 PRESENTATION 17
Slide 18: Appendix
Appendix Q3 2020 PRESENTATION 18
Slide 19: 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 20: Key ratios per quarter
Key ratios per quarter Q3 2020 PRESENTATION 20
Slide 21: 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