Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Q4 2021 Earnings Presentation
23 slides from Karnov Group Ab's earnings presentation, Feb 23, 2022
Slide 1: Q4 2021 Presentation
Q4 Pontus Bodelsson, CEO and Dora Brink Clausen, CFO | 23 February 2022 Q4 2021 PRESENTATION 1
Slide 2: Q4 highlights and operational update
Q4 highlights and operational update Pontus Bodelsson IIKARNOV GROUP Q4 2021 PRESENTATION 2
Slide 3: Delivering on the expansion strategy
Delivering on the expansion strategy +17% +7% 33% 1.0x Net sales Organic growth Adjusted EBITA Leverage margin Q4 2021 PRESENTATION 3
Slide 4: DIBkunnskap launched in Sweden at the end of Q4
DIBkunnskap launched in Sweden at the end of Q4 Key comments 12.2% organic growth driven by good online sales, sales to new customers and upselling to existing customers Municipalities, public sector and EHS vertical still drivers High demand for legal training courses DIBkunnskap AS launched IFRS s
Slide 5: New features launched in our online library
.. with new features launched in our online library Key comments Organic growth of 3.1% driven by sales to both new customers and upselling, of both new and existing products New features in our appreciated growing online library First sales of the newly launched municipality product Closing of acqu
Slide 6: Good growth in 2021 and five new acquisitions
Good growth in 2021 and five new acquisitions Key comments Growth strategy based on three focus areas Technology bolt-ons Vertical acquisitions Geographical expansion Delivered in all focus areas in 2021 Also announced intention to grow into Southern Europe Q4 2021 PRESENTATION 6
Slide 7: Intended acquisition of legal research businesses in Spain and France
Intended acquisition of legal research businesses in Spain and France Transaction at a glance Karnov Group intend to acquire the legal information-based businesses of Thomson Reuters in Spain and Wolters Kluwer in Spain and France Very well-known brands within the segments of legal information & ref
Slide 8: Financial development
—_ Financial development - Dora Brink Clausen IIKARNOV GROUP Q4 2021 PRESENTATION B
Slide 9: Good performance in the fourth quarter as well as the full year
Good performance in the fourth quarter as well as the full year GROUP 17% 14% Net Sales, SEKm Net Sales, SEKm 300 1000 900 250 800 200 700 600 150 500 400 100 300 50 200 189 221 100 771 878 0 0 Q4 2020 Q4 2021 FY 2020 FY 2021 Q4 2021 PRESENTATION 9
Slide 10: Higher net sales and better product mix drive margin improvements
Higher net sales and better product mix drivers for margin improvements GROUP 1.6 -0.2 Adjusted EBITA, SEKm and pp Adjusted EBITA, SEKm and pp margin % margin % 100 400 90 350 37.2% 80 33.3% 37.4% 300 70 31.7% 60 250 50 200 40 150 30 100 20 10 60 74 50 288 327 0 0 Q4 2020 Q4 2021 FY 2020 FY 2021 Q4
Slide 11: Three new acquisitions consolidated
… with three new acquisitions consolidated GROUP Net Sales, SEKm +17% Key comments 250 Net sales growth of 17.1% of which organic growth was 7.4%, currency effects was -0.3% and acquired 200 growth was 10.0% Echoline, Ante and Bella Intelligence consolidated in the 150 fourth quarter Online sales co
Slide 12: Margin improved by 160 basis points
…margin improved by 160 basis points GROUP Adjusted EBITA and margin, SEKm and % Key comments 100 90 Adjusted EBITA improved by 23.2% to SEK 74 m 80 (60) 70 Adjusted EBITA margin improved by 160 basis 60 points to 33.3% (31.7), due to us succeeding in 50 42% 40% 41% 40% our strong efforts to grow th
Slide 13: Sales split
SALES SPLIT Sales split online/offline, % Sales split subscription/non-subscription, % 100% 100% 14% 12% 10% 14% 12% 18% 20% 17% 80% 80% 60% 60% 80% 40% 82% 86% 80% 83% 40% 88% 86% 90% 86% 88% 20% 20% 0% 0% Q4 2020 Q4 2021 FY 2020 FY 2021 Q4 2020 Q4 2021 FY 2020 FY 2021 Online Offline Subscription N
Slide 14: New online products contribute to growth
New online products contribute to growth DENMARK Adjusted EBITA, SEKm and % Net Sales, SEKm Key comments 2% Organic growth was 3.1%, however currency effects 120 2 pp have a negative impact of -1.4% 100 For the full year, organic growth was 3.8% and the 50 adjusted EBITA margin was 40.7% 80 40 45% O
Slide 15: Margin stable despite minor dilution from DIBkunnskap AS
Margin stable despite minor dilution from DIBkunnskap AS SE/NO Net Sales, SEKm Adjusted EBITA, SEKm and margin, % Key comments +34% 1 pp 140 12% organic growth driven by good online sales, upselling to existing customers and sales to new 120 customers 50 39% 41% 100 Gaining market shares in public s
Slide 16: Ready to complete intended acquisition in Spain and France
Ready to complete intended acquisition in Spain and France GROUP Adj. operating cash flow, SEKm and cash conversion, % 330 Key comments 294% 263% Adjusted operating cash flow increased by 31 pp 280 Leverage at 1.0, following strong invoicing in Q4 230 and directed share issue to prepare for the 156%
Slide 17: Summary: solid results, delivering on strategy
1 2 Solid results during the year Delivering on strategy - Organic growth 7% - Five new acquisitions closed during the year - Adjusted EBITA margin 37.2% - Echoline, Ante and Bella Intelligence closed in - Leverage at 1.0x the fourth quarter 3 4 Good performance in core as well as verticals Binding
Slide 18: Jonas Olin is an experienced CFO with extensive M&A experience
Jonas Olin is an experienced CFO with extensive M&A experience Key comments Over 10 years experience as CFO Experience in building up finance functions in international environments and extensive experience from mergers and acquisitions Recent positions as Finance Strategy Director and CFO at Resurs
Slide 19: Better decisions, faster
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/ Q4 2021 PRESENTATION 19
Slide 20: Q4 2021 Presentation
Q4 2021 PRESENTATION 20
Slide 21: For legal and tax professionals in Denmark and Sweden
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 enterprises ➔>1,500 expert authors PUBL
Slide 22: High rated on the Allbright list in 2021
High rated on the Allbright list in 2021 Key comments Environment, Social and Governance is a natural part of Karnov’s DNA Employees from over 20 countries Close to 50/50 % in genders, also in management and Board High rated on Allbright list in 2021 Low environmental impact Actively encouraging ini
Slide 23: 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