Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Q4 2022 Earnings Presentation
24 slides from Karnov Group Ab's earnings presentation, Feb 15, 2023
Slide 1: Q4 2022 Presentation
Pontus Bodelsson, CEO Leif Mårtensson, Interim CFO 15 February 2023 1
Slide 2: Pontus Bodelsson
Pontus Bodelsson Q4 2022 PRESENTATION 2
Slide 3: First large European acquisition completed
First large European acquisition completed Net sales Organic growth Adjusted EBITA Leverage margin (SEKm) Region North Q4 2022 PRESENTATION 3
Slide 4: Karnov is now a strong European player
Karnov is now a strong European player Key comments Organic growth of 10.4% and adjusted EBITA margin of 25.1% on Group level Continued solid online growth drives a solid adjusted EBITA margin of 32.5% in Region North ― Sales drivers are online services, with increasing demand for our services withi
Slide 5: Growing market shares within municipalities
Growing market shares within municipalities Key comments Organic growth of 6.0% and adjusted EBITA margin of 27.5% Additional operating expenses in Denmark related to European expansion impacting the margin Additional municipalities onboarded Customers satisfied with the broad content and practical
Slide 6: Growing user base in legal core and growing market shares within verticals
Growing user base in legal core and growing market shares within verticals Key comments Organic growth of 14.1% and adjusted EBITA margin of 36.8% Higher net sales drive the strong margin Growing online business Public sector, municipalities and EHS perform well Stand-alone entities develop in line
Slide 7: Integration initiated and all progress in line with expectations
Integration initiated and all progress in line with expectations Key comments Net sales and adjusted EBITA margin in line with expectations Integration started including synergies project Focus onwards is to harvest synergies, develop the local companies further and enhance the customer offering Pre
Slide 8: European acquisitions and focus on customer centricity
European acquisitions and focus on customer centricity Key comments Karnov stands strong in a turbulent surrounding world Strong offering in close collaboration with our customers – it’s all about understanding our customers’ challenges of today and opportunities of tomorrow Trust what you find, fin
Slide 9: Leif Mårtensson
Leif Mårtensson Q4 2022 PRESENTATION 9
Slide 10: Milestone reached – over SEK 1 billion in net sales in 2022
Milestone reached – over SEK 1 billion in net sales in 2022 GROUP 67% 27% Net Sales, SEKm Net Sales, SEKm 14% 400 1200 114 350 15% 114 1000 999 300 800 250 600 254 200 400 150 200 221 254 368 878 999 1 113 100 0 Q4 2021 Q4 2022 Q4 2022 FY 2021 FY 2022 FY 2022 excl. Region South incl. Region South ex
Slide 11: New base margin in 2023 due to the acquisition of Region South
New base margin in 2023 due to the acquisition of Region South GROUP 26% 12% Adjusted EBITA, SEKm and Adjusted EBITA, SEKm and margin % margin % 8% 12% 100 25.1% 400 35.4% 32.7% 90 32.5% 350 37.2% 80 33.3% 300 70 60 250 50 200 40 150 30 100 20 10 74 83 93 50 327 354 366 0 0 Q4 2021 Q4 2022 excl. Q4
Slide 12: Strong organic growth supported by acquired growth
Strong organic growth supported by acquired growth GROUP Net Sales, SEKm +67% Key comments Organic growth of 10.4% driven by an increased demand for our services, both within our legal core and 370 closely related verticals 114 325 Both segments contributed to the strong organic growth Net sales amo
Slide 13: Stable adjusted EBITA margin in Region North in Q4
Stable adjusted EBITA margin in Region North in Q4 GROUP Adjusted EBITA and margin, SEKm and % +6% Key comments 110 100 Adjusted EBITA amounted to SEK 93 m (74) 90 10 Adjusted EBITA margin decreased to 25.1% (33.3) 80 The margin was 32.5% in Region North 70 Karnov Group has continued the preparation
Slide 14: Offline sales grow due to acquisition of Region South and strong demand within school publications
Offline sales grow due to acquisition of Region South and strong demand within school publications Sales split online/offline, MSEK, Q4 Sales split online/offline, MSEK, FY 400 1 200 350 78 1 000 203 300 800 151 250 200 22 600 150 290 910 400 727 100 74% 189 77% 200 50 0 0 Q4 2021 Q4 2022 FY 2021 FY
Slide 15: Similar subscription-based sales in Region South
Similar subscription-based sales in Region South Sales split sub/non-sub, MSEK, Q4 Sales split sub/non-sub, MSEK, FY 400 1 200 350 45 127 1 000 300 800 105 250 200 22 600 323 976 150 400 773 100 74% 199 77% 200 50 0 0 Q4 2021 Q4 2022 FY 2021 FY 2022 Subscription Non-subscription Subscription Non-sub
Slide 16: Underlying operational margin on stable level
Underlying operational margin on stable level DENMARK Net Sales, SEKm Adjusted EBITA, SEKm and Key comments +15% margin % -5% Organic growth at the satisfying level of 6.0%. Currency effects had a positive impact of 8.8% 140 Organic growth driven by online sales 120 50 We continue to increase our ma
Slide 17: Municipalities and EHS sales drive the strong organic growth
Municipalities and EHS sales drive the strong organic growth SE/NO Net Sales, SEKm Adjusted EBITA, SEKm and +15% margin, % +32% Key comments Organic growth at the satisfying level of 14.1%. 150 Currency effects had a positive impact of 0.9% 120 60 Strong growth in all business areas due to a strong
Slide 18: Financials in line with expectations
Financials in line with expectations REGION SOUTH Net Sales, SEKm Adjusted EBITA, SEKm and margin, % Key comments Net sales amounted to SEK 114 m 150 Higher offline sales compared to Nordic 120 20 businesses, but with similar rate of subscription Cross-selling opportunities over time, offering the 9
Slide 19: Intention to improve leverage and invest in harvesting synergies
Intention to improve leverage and invest in harvesting synergies GROUP Adj. operating cash flow, SEKm and cash conversion, % 263% 280 253% 236% Key comments 240 Adjusted operating cash flow amounted to SEK 261 m 200 Timing effects on payables as well as tax 134% payments 160 Leverage of 3.6x 120 98%
Slide 20: Good and transformative year
1 2 Good and transformative year Growth in both segments - Online sales continue to grow - Organic growth 9.2% - Strong demand for Karnov’s services - Adjusted EBITA margin 32.7% 3 France, Spain and Portugal - New home markets with new family members - Integration started and progresses well Q4 2022
Slide 21: 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 22: Appendix
Appendix COMPANY PRESENTATION IIIIKARNOV GROUP
Slide 23: Company Video
Company Video: https://vimeo.com/322229237 Q4 2022 PRESENTATION 23
Slide 24: 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