Flemming Breinholt, CEO and Dora Brink Clausen, CFO | 26 August 2020 - PowerPoint PPT Presentation

Flemming Breinholt, CEO and Dora Brink Clausen, CFO | 26 August 2020 Q2 Second quarter 2020 Q2 2020 PRESENTATION 1

Q2 highlights and operational update Flemming Breinholt Q2 2020 PRESENTATION 2

Financial highlights Another solid quarter - impact from Covid-19 on offline +3% +2% 35.5 % 2.4 Net sales Organic growth Adjusted EBITA Leverage margin Q2 2020 PRESENTATION 3

Operational highlights Continued development of our online offering Key comments New local CEOs have been onboarded JUNO enhancements deployed and new products launched in Denmark Karnov Group has shown relevance in the Covid-19 pandemic with high activity on its platform Q2 2020 PRESENTATION 4

Development focus back to normal in Denmark Key comments to Q2 Decrease in growth following decrease in offline, demand from SME market due to Covid-19 and delay in new business Intensified work on providing new solutions to support future growth – two new products launched in second quarter New case-preparation tool now up and running with a growing number of active users Danish platform will be updated later this year Q2 2020 PRESENTATION 5

Solid growth in Sweden Key comments to Q2 6% organic growth driven by good online sales, upselling to existing customers and sales of new products Continued integrating enhancements to JUNO based on feedback from users Virtual classroom courses with positive feedback Good performance in the EHS field Q2 2020 PRESENTATION 6

Covid-19 Key comments on the Covid-19 pandemic Continue to follow regulations and recommendations High activity on our special Covid-19 information section The prolonged pandemic impacts offline sales and also delays in new business Latest assessment is that this will continue through the year Q2 2020 PRESENTATION 7

Future Lawyer Survey 2020 Largest report of its kind in Scandinavia Key comments Purpose to drive the legal sector in Sweden and Denmark forward Focuses on three areas: Transformation, Innovation and Motivation Over 3,500 respondents making the report the largest of its kind in Scandinavia Swedish report Danish report Q2 2020 PRESENTATION 8

Financial development Dora Brink Clausen Q2 2020 PRESENTATION 9

Quarter in line with expectation .... with improved, high margin GROUP +3% Adjusted EBITA, SEKm and Net Sales, SEKm margin % 300 250 100 90 200 80 35.5% 34.7% 70 150 60 50 100 40 30 50 20 173 178 60 63 10 0 0 Q2 2019 Q2 2020 Q2 2019 Q2 2020 Q2 2020 PRESENTATION 10

Continued sales growth … due to solid online performance GROUP Net Sales, SEKm Key comments + 3 % Net sales growth of 2.6% of which organic growth was 2.1%, currency effects was 0.3% and acquired 200 growth was 0.2% Covid-19 impact estimated to >1 % on overall sales 150 Online sales steady growth primarily due to upselling to existing customers and new business 100 50 166 176 179 205 173 190 189 212 178 0 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q2 2020 PRESENTATION 11

High stable margin GROUP Adjusted EBITA and margin, SEKm and % Key comments 90 Adjusted EBITA improved by 5 % to SEK 63 m 80 (60) 70 Adjusted EBITA margin improved to 35.5 % 60 (34.7), due to higher sales, good cost control 42% 42% 50 40% 35% 39% and despite personnel expenses back to normal 36% 34% 33% 31% 40 level of split between maintenance and capitalisation 30 20 10 55 70 61 85 60 74 59 88 63 0 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q2 2020 PRESENTATION 12

Online & subscriptions growing SALES SPLIT Sales split subscription/non-subscription, % Sales split online/offline, % 100% 100% 7% 9% 13% 17% 80% 80% 60% 60% 87% 93% 83% 91% 40% 40% 20% 20% 0% 0% Q2 2019 Q2 2020 Q2 2019 Q2 2020 Online Offline Subscription Non-subscription Q2 2020 PRESENTATION 13

Good margin in Denmark DENMARK Adjusted EBITA, SEKm and % Key comments Net Sales, SEKm -1% Good margin in Denmark -1 pp Sales decrease following Covid-19 which impacts 100 offline sales and delays new business 50 80 SME market also impacted 40 Back to normal levels of capitalisation with more 42% 44% 60 43% 40% 38% 41% 41% 42% resources working on new solutions on the Danish 30 33% 40 market 20 20 10 94 105 96 109 99 110 103 113 98 40 46 36 44 41 46 34 48 40 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2019 2019 2020 2020 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q2 2020 PRESENTATION 14

Good performance in Sweden SWEDEN Net Sales, SEKm Key comments Adjusted EBITA, SEKm and margin, % +7% +3pp 6% organic growth driven by good online sales, upselling to existing customers and sales of new 100 products 50 43% 41% 35% 80 Offline sales declined both due to long-term trend 34% 40 and Covid-19 30% 29% 29% 60 26% 30 Good development in the EHS field 21% 40 Adjusted EBITA & margin improved due to higher 20 net sales, good product mix and good cost control. 20 10 72 72 82 96 74 79 87 99 79 16 24 24 41 20 28 25 40 23 0 0 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2019 2019 2020 2020 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q2 2020 PRESENTATION 15

Strong cash conversion GROUP Adj. operating cash flow, SEKm and cash conversion, % Key comments 177% 168% 200 173% 156% Adjusted operating cash flow improved due to improved operating profit and improved working 150 capital Cash conversion rate up to 66% from 25% in Q2’19 100 66% Leverage at 2.4, in line with financial target 37% 50 25% First dividend paid in Q2’20 2% 120 163 2 109 170 49 23 18 -16% 0 -12 -50 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2018 2018 2018 2019 2019 2019 2019 2020 2020 Q2 2020 PRESENTATION 16

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/ Q2 2020 PRESENTATION 17

Appendix Q2 2020 PRESENTATION 18

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 Q2 2020 PRESENTATION 19

Key ratios per quarter Q2 2020 PRESENTATION 20

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