Slide 1: Karnov Group Q3 2024 presentation
Pontus Bodelsson, President and CEO Magnus Hansson, Group CFO November 6th, 2024
Slide 2: Pontus Bodelsson, President and CEO
Pontus Bodelsson, President and CEO 2 2
Slide 3: Margin expansion, new AI solutions and next phase of integration in Spain
Margin expansion, new AI solutions and launching next phase of the integration in Spain 648 (619) Net sales Net sales (SEKm) (2023) 22% (19%) Adjusted EBITA margin Adjusted (2023) EBITA margin (3.2x) 3.1x Leverage (2023) Leverage 3
Slide 4: Margin expansion, tech carve-out completed, enhanced customer value with AI
▪ Margin expansion as synergies come through ▪ Delivering on synergies from both initiatives ▪ Optimisation of organisation and business portfolio ▪ Tech carve-out completed – launching next phase ▪ No tech integration risk remaining ▪ Launching next phase to deliver profitable growth ▪ Alexandra Åq
Slide 5: AI Assistants
Customer value AI Assistants ▪ From books and libraries to static databases and now to interactive AI assistants ▪ Launched in Region North in a new top-tier package ▪ 87% assess our AI make their work significantly more efficient Static databases ▪ 70% assess our AI make their work easier ▪ Bruun &
Slide 6: Yearly run-rate by category
Yearly run-rate by category 10 000 5 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 4 MEUR 31% 7 500 43% Region South Region North Group 5 000 26% 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 Busi
Slide 8: 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 9 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: stable net sales, tech carve-out completed
▪ Stable net sales with France growing and Spain being reshaped following product rationalisations and optimisation of the sales force ▪ Tech carve-out completed – launching new phase of the integration ▪ No risks remaining from a technical stand-point ▪ Prioritised high speed in integration over sa
Slide 10: Region North: online sales growth and margin expansion
▪ Strong online sales growth and margin expansion ▪ Growth driver is the public sector in Sweden ▪ Schultz acquisition contributed with SEK 24 m ▪ Acceleration Initiative synergies coming through ▪ Integration of carved-out Schultz business ▪ Based on the Karnov playbook ▪ Adding municipality custom
Slide 11: Q3 financials - Magnus Hansson, CFO
Q3 financials Magnus Hansson, CFO IIIIKARNOV GROUP
Slide 12: Growth driven by online sales
GROUP NET SALES Numbers in SEKm Growth driven by online sales +5% ▪ Net sales growth of 5% in the quarter 700 ▪ Driven mainly by new customers 560 ▪ FX impacted growth negatively with -2.4% (SEK -15 m) ▪ New customers from Schultz acquisition 420 ▪ Net sales contribution of SEK 24 m 280 ▪ Strong per
Slide 13: Strong growth in Region North
GROUP NET SALES Numbers in SEKm Strong growth in Region North +5% ▪ Group net sales were SEK 648 m (619) 700 ▪ Organic growth (constant currency) was 2.4% and the FX 600 effect was -2.4% 500 327 ▪ Organic growth in Region North was 7.4% 364 338 340 348 400 ▪ Organic growth driven by online sales wit
Slide 14: Online/offline sales split by region
Strong growth in online sales in Region North supported by stable sales in Region South Sales split online/offline, SEKm, Region North Sales split online/offline, SEKm, Region South 400 400 350 350 31 67 300 300 64 33 250 250 200 200 150 290 150 273 264 246 100 74% 77% 100 50 50 0 0 Q3 2023 Q3 2024
Slide 15: Subscription/non-subscription sales split by region
Sales split sub/non-sub, SEKm, Region North Sales split sub/non-sub, SEKm, Region South 400 400 350 350 22 50 300 300 44 23 250 250 200 200 150 299 150 290 283 256 100 74% 77% 100 50 50 0 0 Q3 2023 Q3 2024 Q3 2023 Q3 2024 Subscription Non-subscription Subscription Non-subscription 15
Slide 16: Margins improvement from synergies
GROUP ADJUSTED EBITA Numbers in SEKm Margins improvement from synergies +23% 180 45% 143 ▪ Adjusted EBITA amounted to SEK 143 m (116) 160 122 143 40% 116 132 ▪ Group adjusted EBITA margin was 22.1% (18.7) 140 35% 120 ▪ Synergies coming through as expected 100 30% ▪ Synergies effect in Q3 was EUR 1.9
Slide 17: Region North: strong growth and margin expansion
Net Sales, SEKm +15% 350 300 250 200 Strong growth and margin expansion 150 100 50 ▪ Organic growth (constant currency) was 7.4% 279 271 294 275 321 0 ▪ Growth driven by online sales of legal information solutions, Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 mainly in the public sector in Sweden ▪ Carve
Slide 18: Region South: synergies coming through as expected
Net Sales, SEKm -4% 400 300 200 Synergies coming through as expected 100 ▪ Organic growth -1.6% 0 340 364 338 348 327 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 ▪ Growing in France due legal training and increased commercial focus Adjusted EBITA, SEKm and ▪ Product rationalisation and optimised sales f
Slide 19: Units managing Group wide tasks
Adjusted EBITA, SEKm and margin, % Units managing Group wide tasks 25 The Group functions cover the Group wide tasks such as Group Management, Information Security, Compliance, 20 HR, Investor Relations and Group Finance. 15 10 5 21 26 19 22 23 0 Q3 2023 Q4 2023 Q1 2024 Q2 2024REGION NORTH Q3 2024 1
Slide 20: Robust capital capacity from free cash flow
Adj. free cash flow, SEKm Robust capital capacity from free cash flow 180 ▪ Adjusted free cash flow amounted to SEK -32 m (-65) 140 ▪ Flat Q-o-Q excluding IAC with timing of leasing payments 100 the main deviation 60 ▪ Leverage of 3.1x due to negative FX ▪ Karnov Group invest in the cost-efficiency
Slide 21: Margin expansion, new AI solutions and next phase of integration in Spain
Margin expansion, new AI solutions and launching next phase of the integration in Spain ▪ Margin expansion as synergies come through ▪ Delivering on synergies from both initiatives ▪ Optimisation of organisation and business portfolio ▪ Tech carve-out completed ▪ No tech integration risk remaining ▪
Slide 22: Thank you
Thank you Q&A MMB W ——e—_—ee—_—E—EeeyeEEeEeEeEeEeEeEeEE GROUP
Slide 23: 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