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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
3Q3 2021 PRESENTATION
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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
Q3 2021 PRESENTATION
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
Q3 2021 PRESENTATION
Karnov Kommune was launched on 1 September
Acquisition of Echoline part of Karnov Group’s internationalisation
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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
Q3 2021 PRESENTATION
7Q3 2021 PRESENTATION
Strong growth and solid margin
GROUP
8
-0.4 pp
Q3 2021 PRESENTATION
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
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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%
Q3 2021 PRESENTATION
GROUP
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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
Q3 2021 PRESENTATION
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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%
Q3 2021 PRESENTATION
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
Q3 2021 PRESENTATION
Margin on a very high level
SE/NO
13
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
Q3 2021 PRESENTATION
Including catch-up effect due to impact from Covid-19 last year
GROUP
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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, %
Q3 2021 PRESENTATION
Ready to execute if the right M&A target occurs
15Q3 2021 PRESENTATION
Execution of our growth strategy- The acquisition of Echoline proves our ambitions
in the EHS field and our ambitions to do international acquisitions
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In DK, municipality solution launched 1 September
- Updated legal platform appreciated among users
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SE/NO segment performs very well– Appreciated products for public sector,
municipalities and EHS
– DIBkunnskap to launch in Sweden in 2021
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Q3 2021 PRESENTATION
17Q3 2021 PRESENTATION
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PRACTITIONERS
Q3 2021 PRESENTATION
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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
Q3 2021 PRESENTATION
Key comments
High rated on the Allbright list in 2021
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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.
Important information
Q3 2021 PRESENTATION