Q3 2021 PRESENTATION 2 - karnovgroup.com

1

Pontus Bodelsson, CEO and Dora Brink Clausen, CFO | 4 November 2021

Q3

Q3 2021 PRESENTATION

2Q3 2021 PRESENTATION

Another growth quarter

+15%Net sales

+8%Organic growth

40%Adjusted EBITA

margin

2.9xLeverage


4

12.5% organic growth driven by good online sales, sales to new customers and upselling to existing customers

Catch-up due to Covid-19 pandemic having an impact previous year

Gaining market shares in municipalities, public sector and our EHS vertical

Our broad municipality solution appreciated as we continue to see a positive trend in public tenders

DIBkunnskap AS to launch in Sweden later this year

Key comments


Strong market trend in the EHS vertical

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Organic growth of 4.4% and adjusted EBITA margin of 44.7%

Both new customers and upselling to existing customers

Both new and existing products

Enhanced platform well received by users

Municipality solution launched 1 September

Karnov Whistleblower new product to meet demands from new EU regulations

Key comments


Karnov Kommune was launched on 1 September

Acquisition of Echoline part of Karnov Group’s internationalisation

6

Key comments

The EHS market is growing due to increasing regulatory demands

Echoline is a SaaS company in the EHS field based in France a unique focus on regulatory monitoring

Acquisition shows our ambition in the EHS field and also proves Karnov Group can make international acquisitions

Majority stake in Ante



Strong growth and solid margin

GROUP

8

-0.4 pp


193 2220

50

100

150

200

250

300

Q3 2020 Q3 2021

Net Sales, SEKm15%

77 88

Q3 2020 Q3 2021

0102030405060708090

100

Adjusted EBITA, SEKm and margin %

39.9%

39.5%

… with a catch-up effect from the Covid-19 pandemic

9

Key comments

Net sales growth of 15.3% of which organic growth was 8.0%, currency effects was -0.7% and acquired growth was 8.0%

Catch-up effect approximately 1 percentage point

Online sales continued to be a growth driver

Offline sales was above market trend due to larger Covid-19 impact in Q3 previous year

DIBkunnskap AS performed as expected

GROUP

190 189 212 178 193 189 234 201 2220

50

100

150

200

250

Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21

Net Sales, SEKm +15%


GROUP

10

Adjusted EBITA improved by 14.2 % to SEK 88 m (77)

Adjusted EBITA margin declined to 39.5 % (39.9), with DIBkunnskap AS having a minor dilution effect of 1 pp on group level as earlier announced

74 59 88 63 77 60 95 70 88

39%31%

42%36%

40%32%

41%35%

40%

0

10

20

30

40

50

60

70

80

90

100

Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21

Adjusted EBITA and margin, SEKm and %

Key comments


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82%

20% 18%

0%

20%

40%

60%

80%

100%

Q3 2020 Q3 2021

Sales split online/offline, %

Online Offline

SALES SPLIT

87%

14% 13%

0%

20%

40%

60%

80%

100%

Q3 2020 Q3 2021

Sales split subscription/non-subscription, %

Subscription Non-subscription

80%86%


DENMARK

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Key comments

Organic growth was 4.4%, however currency effects have a negative impact of -1.6%

Organic growth driven by online sales, mainly legal

Adjusted EBITA increased by 1 pp from a high level

Content with the margin in Denmark

110 103 113 98 108 100 111 98 1110

20

40

60

80

100

120

Q32019

Q42019

Q12020

Q22020

Q32020

Q42020

Q12021

Q22021

Q32021

Net Sales, SEKm

46 34 48 40 47 33 47 40 50

42%

33%

43%40%

44%

33%

43%40%

45%

0

10

20

30

40

50

Q32019

Q42019

Q12020

Q22020

Q32020

Q42020

Q12021

Q22021

Q32021

Adjusted EBITA, SEKm and %

3%

1 pp


Margin on a very high level

SE/NO

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79 87 99 79 85 89 122 103 1120

20

40

60

80

100

120

140

Q32019

Q42019

Q12020

Q22020

Q32020

Q42020

Q12021

Q22021

Q32021

Net Sales, SEKm

28 25 40 23 30 27 47 31 38

35%

29%

41%

30%35%

31%

39%

30%34%

0

10

20

30

40

50

Q32019

Q42019

Q12020

Q22020

Q32020

Q42020

Q12021

Q22021

Q32021

Adjusted EBITA, SEKm and margin, %

+31% -1 pp

Key comments

12% organic growth driven by good online sales, upselling to existing customers and sales to new customers

Gaining market shares in public sector, municipalities and EHS vertical

Upselling to existing customers where also non-core users use our services

Adjusted EBITA margin stable despite dilution following the acquisition of DIBkunnskap AS


Including catch-up effect due to impact from Covid-19 last year

GROUP

14

Key comments

Adjusted operating cash flow decreased by 3 ppTiming effects impacted adjusted operating cash flow

Leverage at 2.9, below financial target, and will decrease after next invoicing season

Unutilized credit lines make us ready to make acquisitions if the right M&A target occurs

2 109 170 49

-1

192 104 38

-4

2%

156%173%

66%

-1%

263%

98%

46%

-4%

-20

30

80

130

180

230

280

Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021

Adj. operating cash flow, SEKmand cash conversion, %


Ready to execute if the right M&A target occurs


Execution of our growth strategy- The acquisition of Echoline proves our ambitions

in the EHS field and our ambitions to do international acquisitions

1

In DK, municipality solution launched 1 September

- Updated legal platform appreciated among users

3

SE/NO segment performs very well– Appreciated products for public sector,

municipalities and EHS

– DIBkunnskap to launch in Sweden in 2021

2

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Better decisions, fasterFind what you need, trust what you find and do it quickly.

For more information visit www.karnovgroup.com/en/section/investors/



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PRACTITIONERS


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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 2021

Low environmental impact

Actively encouraging initiatives from local management groups

― Car policy promoting electric or hybrid cars

― Swedish employees can choose green pension fund

― Green energy in Copenhagen


Key comments

High rated on the Allbright list in 2021

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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 current views with respect to future events as well as potential financial results and operational performance. Forward-looking statements, as a general manner, are all statements other than statements as to historical facts or present facts or circumstances as well as other statements regarding present facts or circumstances. The words “believe”, “expect”, “mean to”, “intend”, “estimate”, “anticipate”, “assume”, “predict”, “can”, ”will”, “shall”, “should”, “consider”, “may”, “might”, “plan to”, “aim”, “potential”, “calculate”, “as far as is known”, or in each case, their negative, or similar expressions, identify certain of these forward-looking statements. Other forward-looking statements can be identified by the context in which they are used. Although Karnov believes that the expectations reflected in such forward-looking statements are reasonable, Karnov can give no assurances that the forward-looking statements will materialise or prove to be correct. Because these statements are based on assumptions or estimates and are subject to risks and uncertainties, the actual results or outcome could differ materially from those set out in the forward-looking statements as a result of many factors, including factors outside Karnov’s control. Any forward-looking statements included in this presentation speak only as at the date of this presentation. Information in this presentation may be changed, added to or corrected without advance notification but Karnov undertakes no obligation to publicly update or revise any information, including any forward-looking statements, whether as a result of new information, future events or otherwise.

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Q3 2021 PRESENTATION 2 - karnovgroup.com