Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Q1 2024 Earnings Presentation
24 slides from Karnov Group Ab's earnings presentation, May 3, 2024
Slide 1: Pontus Bodelsson, President and CEO; Magnus Hansson, Group CFO
Pontus Bodelsson, President and CEO Magnus Hansson, Group CFO May 3rd, 2024 1
Slide 2: Pontus Bodelsson
Pontus Bodelsson Q1 2024 PRESENTATION 2
Slide 3: Progressing with the efficiency initiatives and acquisition within EHS
Progressing with the efficiency initiatives and acquisition within EHS for further profitable growth 632 +3% 23% 2.7x Net sales Organic growth Adjusted EBITA Leverage margin (SEKm) Q1 2024 PRESENTATION 3
Slide 4: Yearly run-rate by category
Yearly run-rate by category 10 000 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 Q1 2024 PRESENTATION 4
Slide 5: Yearly run-rate by category and split between segments
Yearly run-rate by category and split between segments 10 000 7 500 Region South Region North Group 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 and Customer service Tech platform Finance and legal Business portfolio Othe
Slide 6: Total cost-synergies of EUR 20 m will come progressively
The total cost-synergies of EUR 20 m will come progressively over the period 20 000 17 500 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 Q1 2024 PRESENTATION 6
Slide 7: Key comments
• Increasing number of laws and regulations • Increasing complexity in legislation • Generative AI is a paradigm shift Key comments Rising number of laws and regulations as well as increased complexity of legislation and compliance Growing demand for trusted, accurate legal information solutions Cus
Slide 8: Strategic focus areas for 2024-2026
Strategic focus areas for 2024-2026 Developing Talent & Culture Sharing best practice - and platforms Profitable growth journey Taking the Al leap IIKARNOV GROUP. Q1 2024 PRESENTATION ®
Slide 9: Key comments: Region North growth and EHS acquisition
Growing in the public sector and acquisition of EHS business for further profitable growth Key comments Growth mainly driven by online sales Drivers are volume, value enhancements and annual price increases Growing market share within the public sector Strong performance within T&A and EHS DIBkunnsk
Slide 10: Key comments: Launch of new AI-based feature in Spain
Launch of new AI-based feature in Spain Key comments Stable net sales following product rationalisation and optimisation of the Spanish sales force Synergies coming through as expected Spanish merger ahead of plan Close to 70% of the content merged onto the common tech platform Merger continues in p
Slide 11: Magnus Hansson
Magnus Hansson Q1 2024 PRESENTATION 11
Slide 12: Net sales growth driven by increasing online sales
Net sales growth driven by increasing online sales GROUP Net Sales, SEKm +3% Key comments Net sales growth of 3% in the quarter 700 Increased sales of online solutions and increased sales of legal training in France 560 Growth driven by user increase, value enhancements and annual price adjustments
Slide 13: The Group's organic growth driven by Region North
The Group’s organic growth driven by Region North GROUP Net Sales, SEKm +3% Key comments Group net sales reached SEK 632 m (614). 700 Organic growth (constant currency) was 2.5% and the FX 600 effect was 0.4% ― Organic growth of 5.7% in Region North 500 338 ― Region South flat compared to the previo
Slide 14: Strong growth in online sales in Region North
Strong growth in online sales in Region North supported by stable sales in Region South Sales split online/offline, MSEK, Region North Sales split online/offline, MSEK, Region South 400 400 350 350 300 300 75 81 42 250 50 250 200 200 150 150 252 261 257 74% 228 77% 100 100 50 50 0 0 Q1 2023 Q1 2024
Slide 15: Sales split sub/non-sub by region
Sales split sub/non-sub, MSEK, Region North Sales split sub/non-sub, MSEK, Region South 400 400 350 350 300 300 54 58 29 35 250 250 200 200 150 150 282 265 281 243 100 74% 77% 100 50 50 0 0 Q1 2023 Q1 2024 Q1 2023 Q1 2024 Subscription Non-subscription Subscription Non-subscription Q1 2024 PRESENTATI
Slide 16: Solid margin with harvested synergies off-set by higher depreciations
Solid margin with harvested synergies off-set by higher depreciations GROUP +2% 180 45% Key comments 140 143 160 122 40% Adjusted EBITA amounted to SEK 143 m (140) 116 140 109 Group adjusted EBITA margin was 22.7% (22.9%) 35% 120 Lower COGS and other opex due to product mix off-set 30% by increased
Slide 17: Region North: strong organic growth with operational leverage
Strong organic growth with operational leverage REGION NORTH Net Sales, SEKm Adjusted EBITA, SEKm and Key comments +6% margin % +5% Organic growth (constant currency) was 5.7%. 300 Growth driven by online sales of legal information solutions. Increased market share within the public sector. 250 140
Slide 18: Region South: cost synergies coming through according to plan
Cost synergies coming through according to plan REGION SOUTH Net Sales, SEKm Adjusted EBITA, SEKm and +1% margin, % -6% Key comments Organic growth -0.1% 400 Growth in the quarter due to FX effects of 0.7% 50 Good traction in legal training sales in France 300 40 Adjusted EBITA margin 10.5% (11.2) 2
Slide 19: Group Functions
GROUP FUNCTIONS Adjusted EBITA, SEKm and margin, % Key comments Group Functions consists of the units taking responsibility for Group wide tasks 25 Underlying cost base excluding ordinary D&A unchanged in Region North and Group Functions 20 15 10 5 18 19 21 26 19 0 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1
Slide 20: Adjusted free cash flow in the quarter
Adjusted free cash flow of SEK 107 m in the quarter GROUP Adj. free cash flow, SEKm 180 Key comments Adjusted free cash flow amounted to SEK 107 m (153) 140 Adj. free cash flow impacted by timing of tax 100 payments and changes in net working capital due to timing of invoicing in Region South 60 Lev
Slide 21: Region North delivering strong results; Region South integration ahead of plan
1 2 Region North delivering Region South integration strong results ahead of plan • Strong growth in the public sector • Stable net sales • Acquisition of QSE Conseil for further growth • Product rationalisation and optimised sales force within EHS • Synergies coming through as expected 3 Executing
Slide 22: Find what you need, trust what you find and do it quickly.
Find what you need, trust what you find and do it quickly. For more information visit www.karnovgroup.com
Slide 23: Appendix
Appendix IIIIKARNOV GROUP
Slide 24: Forward-looking statements 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