Karnov Group Ab · OMXSTO:KAR
Karnov Group Ab — Q1 2025 Earnings Presentation
23 slides from Karnov Group Ab's earnings presentation, May 14, 2025
Slide 1: Karnov Group Q1 2025 presenters and date
Pontus Bodelsson, President and CEO Magnus Hansson, Group CFO May 14th, 2025
Slide 2: Pontus Bodelsson, President and CEO
Pontus Bodelsson, President and CEO 2 2
Slide 3: Strong cash flow and margins
Strong cash flow and margins 673 (632) Net sales Net sales (SEKm) (Q1 2024) 26% (23%) Adjusted EBITA margin Adjusted (Q1 2024) EBITA margin (2.7x) 2.4x Leverage (Q1 2024) Leverage 3
Slide 4: Strong cash flow and margins in Q1
Strong cash flow and margins in Q1 ▪ Strong free cash flow from renewals of annual online subscriptions ▪ Volume growth, new sales and AI upgrades in Q1 ▪ Strong margins improvement to 26% ▪ Synergies are coming through ▪ Our AI assistant makes customers significantly more efficient ▪ Usage is incre
Slide 5: Usage of our AI assistant increases steadily thanks to significant efficiency gains
Usage of our AI assistant increases steadily thanks to significant efficiency gains ▪ We sell our AI assistant to all customer segments ▪ Customers use our AI assistant daily after onboarding ▪ Usage is increasing month-by-month ▪ Major update of our AI assistant launched in May ▪ Agentic workflow f
Slide 6: Synergies achievements ahead of plan
Synergies achievements ahead of plan 10 000 9 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: Synergies achievements ahead of plan
Synergies achievements ahead of plan 8 MEUR 10 000 7 500 31% 43% Region South Region North 5 000 Group 2 500 26% 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 Oth
Slide 8: The total cost-synergies of EUR 20 m will come progressively over the period
The total cost-synergies of EUR 20 m will come progressively over the period 20 000 17MEUR 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 8
Slide 9: Strong online sales growth and margin improvement
▪ Strong online sales growth and margin improvement ▪ Growth driven by volume, price, AI uplifts and strong new sales in EHS businesses ▪ Schultz integration progresses according to plan 9
Slide 10: Progressing with successful top-line turnaround in France and synergies achievements in Spain
▪ Progressing with successful top-line turnaround in France and synergies achievements in Spain ▪ Growth in France thanks to online growth – taking market shares ▪ Decline in Spain due to weak offline sales – action plan launched ▪ New top-tier product Infinita launched in Spain with AI ▪ First prod
Slide 11: Q1 financials
Q1 financials Magnus Hansson, CFO IIIKARNOV GROUP
Slide 12: Growth driven by online sales
GROUP NET SALES Numbers in SEKm Growth driven by online sales +7% ▪ Solid net sales growth of 7% in Q1 700 ▪ Strong online sales growth driven by volume, pricing and AI uplifting as well as new sales 560 ▪ FX impacted growth negatively with -0.4% (SEK -3 m) 420 ▪ Schultz carve-out contributed with S
Slide 13: Strong growth in Region North
GROUP NET SALES Numbers in SEKm Strong growth in Region North +7% ▪ Group net sales were SEK 673 m (632) 700 ▪ Organic growth (constant currency) was 2.7%, FX effect 600 was -0.4% and acquired growth was 4.2% 500 327 369 335 ▪ Organic growth in Region North was 7.7% 338 348 ▪ Organic growth in Regio
Slide 14: Continued strong growth in online sales
Continued strong growth in online sales Sales split online/offline, SEKm, Region North Sales split online/offline, SEKm, Region South 400 400 350 350 39 300 300 81 67 42 250 250 200 200 150 19% 299 150 4% 252 258 268 100 74% 77% 100 50 50 0 0 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Online Offline Online Off
Slide 15: Sales split sub/non-sub, Region North and Region South
Sales split sub/non-sub, SEKm, Region North Sales split sub/non-sub, SEKm, Region South 400 400 350 350 28 300 300 58 55 29 250 250 200 200 150 16% 310 150 0% 267 280 280 100 74% 77% 100 50 50 0 0 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Subscription Non-subscription Subscription Non-subscription 15
Slide 16: Margins improvement from synergies
GROUP ADJUSTED EBITA Numbers in SEKm Margins improvement from synergies +22% 250 45% ▪ Adjusted EBITA amounted to SEK 175 m (143) 40% 162 175 200 ▪ Group adjusted EBITA margin was 26.0% (22.7) 143 143 35% 132 ▪ Synergies coming through as expected 150 30% ▪ Annual run-rate synergies from our initiat
Slide 17: Strong sales and margins
Net Sales, SEKm +15% 350 300 250 200 Strong sales and margins 150 100 50 ▪ Organic growth (constant currency) was 7.7% 294 275 321 322 338 0 ▪ Growth driven by online sales of legal information Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 solutions and customer upgrades to AI package Adjusted EBITA, SEKm
Slide 18: Online sales growth and margin improvement
Net Sales, SEKm -1% 400 300 200 Online sales growth and margin improvement 100 ▪ Organic growth (constant currency) was -1.7% 0 338 348 327 369 335 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 ▪ Growth in France while Spain declined ▪ Decline is Spain mainly related to offline sales Adjusted EBITA, SEKm
Slide 19: Units managing Group wide tasks
Adjusted EBITA, SEKm and margin, % Units managing Group wide tasks 30 The Group functions cover the Group wide tasks such as Group Management, Information Security, Compliance, 25 HR, Investor Relations and Group Finance. 20 ▪ Additional investments of AI in the quarter 15 10 5 19 22 23 30 23 0 Q1 2
Slide 20: Strong adjusted free cash flow in Q1
Adj. free cash flow, SEKm Strong adjusted free cash flow in Q1 250 200 ▪ Adjusted free cash flow amounted to SEK 245 m (107) ▪ Strong operating cash flow mainly from renewals of annual 150 online subscriptions in both regions ▪ Leverage of 2.4x – below financial target 100 ▪ Decreased RCF thanks to
Slide 21: Strong cash flow and margins in Q1
Strong cash flow and margins in Q1 ▪ Karnov’s AI assistant makes customers more efficient ▪ Usage is increasing steadily ▪ User friendly and strong positive feedback ▪ New customer features launched in May ▪ Strong free cash flow from renewals of annual online subscriptions ▪ Volume growth, new sale
Slide 22: Thank you
Thank you Q&A MMB W ——e—_—e—EeEeEeEEeEeEseoeE OUP
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