Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Q2 2021 Earnings Presentation
21 slides from Karnov Group Ab's earnings presentation, Aug 26, 2021
Slide 1: Q2 2021 Presentation
Q2 Pontus Bodelsson, CEO and Dora Brink Clausen, CFO | 26 August 2021 Q2 2021 PRESENTATION 1
Slide 2: Q2 highlights and operational update
Q2 highlights and operational update Pontus Bodelsson IIKARNOV GROUP Q2 2021 PRESENTATION 2
Slide 3: Continued expansion
Continued expansion +13% +7% 35% 3.0x Net sales Organic growth Adjusted EBITA Leverage margin Q2 2021 PRESENTATION 3
Slide 4: Experienced business leader in content, authors and experts
Experienced business leader in content, authors and experts Key comments 23 years as CEO - five different companies Including digital knowledge companies NE/Nationalencyklopedin and the media group Sydsvenskan/HD Master of Laws (LL.M) 1995 and MBA 2007 Author and speaker with focus on leadership Boa
Slide 5: It's not about changing the strategy – it's about improving the execution
It’s not about changing the strategy – it’s about improving the execution Key comments Karnov plays an important part in a society based on justice and democracy Increase the customer value by putting our unique content in the customers’ context Our quality content is more needed than ever Promising
Slide 6: Enhanced platform now default solution for a majority of our customers
Enhanced platform now default solution for a majority of our customers Key comments Organic growth of 4.8% and adjusted EBITA margin of 40.1% Both new customers and upselling to existing customers Both new and existing products Enhanced platform well received by users Adding more features to the pla
Slide 7: Strong development in online sales
Strong development in online sales Key comments 8.9% organic growth driven by good online sales, sales to new customers and upselling to existing customers Gaining market shares in municipalities, public sector and our EHS vertical DIBkunnskap AS performed well, in line with expectations DIBkunnskap
Slide 8: Financial development
—_ Financial development - Dora Brink Clausen IIKARNOV GROUP Q2 2021 PRESENTATION B
Slide 9: Margin still on a good level despite dilution from DIB acquisition
Margin still on a good level despite dilution from DIB acquisition GROUP -0.5 13% Adjusted EBITA, SEKm and Net Sales, SEKm margin % pp 300 250 100 200 90 80 35.0% 70 35.5% 150 60 50 100 40 30 50 20 178 201 10 63 70 0 0 Q2 2020 Q2 2021 Q2 2020 Q2 2021 Q2 2021 PRESENTATION 9
Slide 10: Due to strong online sales
Due to strong online sales GROUP Net Sales, SEKm +13% Key comments 250 Net sales growth of 13.0% of which organic growth was 6.6%, currency effects was -2.3% and acquired 200 growth was 8.7% Online sales continued to be a growth driver 150 Offline sales declined in line with normal market trend 100
Slide 11: Better product mix and operational excellence had a positive impact
Better product mix and operational excellence had a positive impact GROUP Adjusted EBITA and margin, SEKm and % Key comments 100 90 Adjusted EBITA improved by 11.4 % to SEK 70 m 80 (63) 70 Adjusted EBITA margin declined to 35.0 % 60 (35.5), with DIBkunnskap AS having a minor 50 39% 42% 40% 41% dilut
Slide 12: Typical high level of online sales in the second quarter
Typical high level of online sales in the second quarter SALES SPLIT Sales split online/offline, % Sales split subscription/non-subscription, % 100% 100% 13% 11% 7% 7% 80% 80% 60% 60% 89% 87% 93% 93% 40% 40% 20% 20% 0% 0% Q2 2020 Q2 2021 Q2 2020 Q2 2021 Online Offline Subscription Non-subscription Q
Slide 13: Organic growth was 5%
Organic growth was 5 % DENMARK Adjusted EBITA, SEKm and % Net Sales, SEKm Key comments 0% Organic growth was 5%, however currency effects 120 0 pp have a negative impact of -5% 100 Organic growth driven by online sales 50 80 Adjusted EBITA flat on a high level 40 43% 44% 43% 60 41% 42% 40% 40% 30 33
Slide 14: Acquired growth contributes with 19%
Acquired growth contributes with 19% SE/NO Net Sales, SEKm Adjusted EBITA, SEKm and margin, % Key comments +29% 0 pp 140 9% 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 in public sector, municipali
Slide 15: Adjusted operating cash flow LTM has increased
Adjusted operating cash flow LTM has increased GROUP Adj. operating cash flow, SEKm and cash conversion, % 300 263% Key comments 250 Adjusted operating cash flow decreased by 22% Timing effects impacted adjusted operating cash flow 200 173% Adjusted operating cash flow LTM has increased 156% Cash fl
Slide 16: In DK, a majority of our users are now using the enhanced platform
1 2 In DK, a majority of our users are SE/NO segment has performed well now using the enhanced platform – Gaining market shares in public sector, - Municipality product to be launched second half municipalities and EHS vertical 2021 – DIBkunnskap AS performs as expected 3 Stay even closer to the cus
Slide 17: 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/ Q2 2021 PRESENTATION 17
Slide 18: Q2 2021 PRESENTATION
Q2 2021 PRESENTATION 18
Slide 19: 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 20: High rated on the Allbright list in 2020
High rated on the Allbright list in 2020 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 2020 Low environmental impact Actively encouraging ini
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