Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Q3 2021 Earnings Presentation
20 slides from Karnov Group Ab's earnings presentation, Nov 4, 2021
Slide 1: Q3 2021 Presentation
Q3 Pontus Bodelsson, CEO and Dora Brink Clausen, CFO | 4 November 2021 Q3 2021 PRESENTATION 1
Slide 2: Q3 highlights and operational update
Q3 highlights and operational update Pontus Bodelsson IIKARNOV GROUP Q3 2021 PRESENTATION 2
Slide 3: Another growth quarter
Another growth quarter +15% +8% 40% 2.9x Net sales Organic growth Adjusted EBITA Leverage margin Q3 2021 PRESENTATION 3
Slide 4: Strong market trend in the EHS vertical
Strong market trend in the EHS vertical Key comments 12.5% organic growth driven by good online sales, sales to new customers and upselling to existing customers Catch-up due to Covid-19 pandemic having an impact previous year Gaining market shares in municipalities, public sector and our EHS vertic
Slide 5: Karnov Kommune was launched on 1 September
Karnov Kommune was launched on 1 September Key comments Organic growth of 4.4% and adjusted EBITA margin of 44.7% Both new customers and upselling to existing customers Both new and existing products Enhanced platform well received by users Municipality solution launched 1 September Karnov Whistlebl
Slide 6: Acquisition of Echoline part of Karnov Group’s internationalisation
Acquisition of Echoline part of Karnov Group’s internationalisation Key comments The EHS market is growing due to increasing regulatory demands Echoline is a SaaS company in the EHS field based in France a unique focus on regulatory monitoring Acquisition shows our ambition in the EHS field and also
Slide 7: Financial development
—_ Financial development - Dora Brink Clausen IIKARNOV GROUP Q3 2021 PRESENTATION | |
Slide 8: Strong growth and solid margin
Strong growth and solid margin GROUP -0.4 15% Adjusted EBITA, SEKm and Net Sales, SEKm margin % pp 300 250 100 39.5% 200 90 80 39.9% 70 150 60 50 100 40 30 50 20 193 222 10 77 88 0 0 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2021 PRESENTATION 8
Slide 9: … with a catch-up effect from the Covid-19 pandemic
… with a catch-up effect from the Covid-19 pandemic GROUP Net Sales, SEKm +15% Key comments 250 Net sales growth of 15.3% of which organic growth was 8.0%, currency effects was -0.7% and acquired 200 growth was 8.0% Catch-up effect approximately 1 percentage point 150 Online sales continued to be a
Slide 10: Adjusted EBITA and margin
GROUP Adjusted EBITA and margin, SEKm and % Key comments 100 90 Adjusted EBITA improved by 14.2 % to SEK 88 m 80 (77) 70 Adjusted EBITA margin declined to 39.5 % 60 (39.9), with DIBkunnskap AS having a minor 50 39% 42% 40% 41% 40% dilution effect of 1 pp on group level as earlier 36% 35% 40 31% 32%
Slide 11: Sales split
SALES SPLIT Sales split online/offline, % Sales split subscription/non-subscription, % 100% 100% 18% 14% 13% 20% 80% 80% 60% 60% 80% 82% 40% 40% 86% 87% 20% 20% 0% 0% Q3 2020 Q3 2021 Q3 2020 Q3 2021 Online Offline Subscription Non-subscription Q3 2021 PRESENTATION 11
Slide 12: Margin on a very high level (Denmark)
Margin on a very high level DENMARK Adjusted EBITA, SEKm and % Net Sales, SEKm Key comments 3% Organic growth was 4.4%, however currency effects 120 1 pp have a negative impact of -1.6% 100 Organic growth driven by online sales, mainly legal 50 80 Adjusted EBITA increased by 1 pp from a high level 4
Slide 13: Including catch-up effect due to impact from Covid-19 last year
Including catch-up effect due to impact from Covid-19 last year SE/NO Net Sales, SEKm Adjusted EBITA, SEKm and margin, % Key comments +31% -1 pp 140 12% organic growth driven by good online sales, upselling to existing customers and sales to new 120 customers 50 39% 35% 41% 100 Gaining market shares
Slide 14: Ready to execute if the right M&A target occurs
Ready to execute if the right M&A target occurs GROUP Adj. operating cash flow, SEKm and cash conversion, % 280 263% Key comments Adjusted operating cash flow decreased by 3 pp 230 Timing effects impacted adjusted operating cash flow 173% Leverage at 2.9, below financial target, and will 180 156% de
Slide 15: Execution of our growth strategy
1 2 Execution of our growth strategy SE/NO segment performs very well - The acquisition of Echoline proves our ambitions – Appreciated products for public sector, in the EHS field and our ambitions to do municipalities and EHS international acquisitions – DIBkunnskap to launch in Sweden in 2021 3 In
Slide 16: 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/ Q3 2021 PRESENTATION 16
Slide 17: Q3 2021 PRESENTATION
Q3 2021 PRESENTATION 17
Slide 18: 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 19: 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 20: 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