Flemming Breinholt, CEO and Dora Brink Clausen, CFO | 21 February - PowerPoint PPT Presentation

Flemming Breinholt, CEO and Dora Brink Clausen, CFO | 21 February 2020 Q4 Fourth quarter 2019 Q4 2019 PRESENTATION 1

Q4 highlights and operational update Flemming Breinholt 2 Q4 2019 PRESENTATION

Financial highlights In line with medium-term financial targets +6% +4% +0.2 pp 2.7 Net sales Organic growth Adjusted EBITA Leverage margin Q4 2019 PRESENTATION 3

Operational highlights Completed roll-out of JUNO Key comments All users are onboarded Old platforms are closed down Based on user feedback still deploying enhancements during 1H 2020 JUNO platform to be used to upgrade the Danish offering Q4 2019 PRESENTATION 4

Market offensive initiated in Denmark Key comments to Q4 and FY 3% organic growth in Q4 and FY – according to expectations Focus on renewal of customer contracts with normal good outcome Market offensives started including: Upgrade of Danish offering Collaboration with law firm in promoting e-courses Investment in Procurementlink Negotiations on collaboration with Ante – associated investment closed in January 2020 Q4 2019 PRESENTATION 5

Strong performance in Sweden Key comments to Q4 and FY 5% organic growth in Q4 and 6% for the FY – according to expectations JUNO roll-out completed User feedback on JUNO – deploying enhancements for 1H 2020 AI-based recommendation function released in the end of Q4 for Notisum Key comment after Q4 New CEO recruited for Norstedts Juridik Q4 2019 PRESENTATION 6

Focus onwards Adding more value for our customers Knowledge/information Key comments Strong performance in online Online growth more than offset the Adding even more value gives our offline decline – as expected users certainty and more efficiency. Investments in two start-up companies Focus on adding more value in 2020 Process/services Q4 2019 PRESENTATION 7

Financial development Dora Brink Clausen Q4 2019 PRESENTATION 8

Increased net sales and organic growth …FY and Q4 growth met expectations GROUP Net Sales, SEKm Net Sales, SEKm +6% +6% 800 200 700 600 150 500 400 100 300 200 50 100 715 757 179 189 0 0 FY 2018 FY 2019 Q4 2018 Q4 2019 Q4 2019 PRESENTATION 9

Improved adj. EBITA profit & margin for FY GROUP Adjusted EBITA, SEKm and Adjusted EBITA, SEKm and margin % margin % +0.2 -2.5 pp pp 300 80 36.8% 36.6% 70 33.9% 250 31.4% 60 200 50 150 40 30 100 20 50 262 279 61 59 10 0 0 FY 2018 FY 2019 Q4 2018 Q4 2019 Q4 2019 PRESENTATION 10

Continued steady sales growth … due to strong online performance GROUP Net Sales, SEKm Key comments + 5.8 % Net sales growth of 5.8% Organic growth of 4.1% and currency effects of 200 1.7%. Online sales steady growth 150 Offset the declining offline market Both DK and SE contributed to higher sales 100 50 194 166 176 179 205 173 190 189 0 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q4 2019 PRESENTATION 11

Flat adj. EBITA – due to market investments GROUP Adjusted EBITA and margin, SEKm and % Key comments -2.5 pp 90 Adjusted EBITA 59 MSEK vs. 61 MSEK 80 Adjusted EBITA margin declined 2.5 pp due to 70 our active decision to take costs to prepare our 60 new market offensive in Denmark 42% 50 40% 39% 39% Significant one-off trade in Q4 2018 affected 35% 34% 33% 31% 40 comparability 30 20 10 76 55 70 61 85 60 74 59 0 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q4 2019 PRESENTATION 12

Online sales growing according to expectations SALES SPLIT Sales split subscription/non-subscription, % Sales split online/offline, % 100% 100% 14% 15% 16% 17% 21% 23% 24% 26% 80% 80% 60% 60% 79% 77% 76% 74% 86% 83% 85% 84% 40% 40% 20% 20% 0% 0% FY 2018 FY 2019 Q4 2018 Q4 2019 FY 2018 FY 2019 Q4 2018 Q4 2019 Online Offline Subscription Non-subscription Q4 2019 PRESENTATION 13

Stable growth in Denmark DENMARK Adjusted EBITA, SEKm and % Key comments Net Sales, SEKm +6% 6% net sales growth -5 pp 3% organic growth in line with expectations 100 Currency effect added 3% 80 50 Decline in adjusted EBITA margin due to active 40 investments to prepare our new market offensive in 60 42% 44% 38% 41% 41% 42% Denmark 34% 30 33% 40 20 Includes development resources to prepare this 10 20 35 40 46 36 44 41 46 34 102 94 105 96 109 99 110 103 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2018 2018 2018 2019 2019 2019 2019 Q4 2019 PRESENTATION 14

Continued strong performance in Sweden SWEDEN Net Sales, SEKm Adjusted EBITA, SEKm and Key comments margin, % +5% +5% 5% net sales growth Continued steady growth in online 100 45% 50 43% 35% Offline sales declined both due to long-term trend 80 34% 40 and a one-off trade in Q4 2018 29% 29% 26% 60 30 Adjusted EBITA up 5% or SEK 1 m despite SEK 7 m 21% higher D&A 40 20 Adjusted EBITA margin in line with Q4 2018 20 10 92 72 72 82 96 74 79 87 41 16 24 24 41 20 28 25 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2018 2018 2018 2019 2019 2019 2019 2018 2018 2018 2018 2019 2019 2019 2019 Q4 2019 PRESENTATION 15

Robust cash conversion in Q4 GROUP Adj. operating cash flow, SEKm and cash conversion, % 219% Key comments 177% 200 168% 156% Adjusted operating cash flow FY 2019 of over SEK 250 million, enabling dividend proposal 150 Cash conversion rate 89 % for FY 100 Leverage at 2.7 below financial target 37% 50 25% 2% 177 120 163 2 109 23 18 -16% 0 -12 -50 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2018 2018 2018 2019 2019 2019 2019 Q4 2019 PRESENTATION 16

Dividend proposal Board proposes SEK 0.45 per share to be paid on May 12 DIVIDEND Dividend level Key comments 300 Karnov’s objective is to distribute 30– 50 per cent of 250 the purchase price allocation (PPA) adjusted net Proposed dividend of SEK 0.45 per share* profit 200 Proposed dividend corresponds to approx. 30 per cent of PPA + adjusted net profit since listing 150 50% When proposing the dividend, the Board has taken 100 not only Karnov’s cash generation capabilities and 30% unutilised credit lines into account but also the 50 stated objective to do additional investments and acquisitions 202 MSEK 0 PPA + adjusted net profit *Dividend level is 30 % since listing or 22.5 % based on 12 months. Q4 2019 PRESENTATION 17

Summary of 2019 1 2 In line with financial targets JUNO rollout completed, still – Organic growth of 4% enhancements during 1H 2020 – Adjusted EBITA margin up 0.2 pp – Leverage below 3x 3 4 Board of Directors proposing Solid base to grow business further dividend 18 Q4 2019 PRESENTATION

Q&A 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/ Q4 2019 PRESENTATION 19

Appendix Q4 2019 PRESENTATION 20

Karnov – The leading B2B platform 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 PUBLIC ➔ ~80 in-house editorial staff Government Courts administration Q4 2019 PRESENTATION 21

Key ratios per quarter Q4 2019 PRESENTATION 22

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 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”, “pred ict ”, “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. Q4 2019 PRESENTATION 23