Q2 2021 PRESENTATION 2 - karnovgroup.com

1

Pontus Bodelsson, CEO and Dora Brink Clausen, CFO | 26 August 2021

Q2

Q2 2021 PRESENTATION

2Q2 2021 PRESENTATION

Continued expansion

+13%Net sales

+7%Organic growth

35%Adjusted EBITA

margin

3.0xLeverage


Experienced business leader in content, authors and experts

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Key comments

23 years as CEO - five different companies

Including digital knowledge companiesNE/Nationalencyklopedin and the media groupSydsvenskan/HD

Master of Laws (LL.M) 1995 and MBA 2007

Author and speaker with focus on leadership

Board assignments in e-health


It’s not about changing the strategy – it’s about improving the execution

5

Key comments

Karnov plays an important part in a society based on justice and democracy

Increase the customer value by putting our unique content in the customers’ context

Our quality content is more needed than ever

Promising potential in our newly enhanced products and our verticals


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Organic growth of 4.8% and adjusted EBITA margin of 40.1%

Both new customers and upselling to existing customers

Both new and existing products

Enhanced platform well received by users

Adding more features to the platform the coming months

Municipality product to be launched second half 2021

Key comments


Enhanced platform now default solution for a majority of our customers

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8.9% organic growth driven by good online sales, sales to new customers and upselling to existing customers

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

DIBkunnskap AS performed well, in line with expectations

DIBkunnskap AS preparing to launch in Sweden later this year

Key comments


Strong development in online sales


Margin still on a good level despite dilution from DIB acquisition

GROUP

9

-0.5 pp


178 2010

50

100

150

200

250

300

Q2 2020 Q2 2021

Net Sales, SEKm13%

63 70

Q2 2020 Q2 2021

0102030405060708090

100

Adjusted EBITA, SEKm and margin %

35.5%35.0%

Due to strong online sales

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Key comments

Net sales growth of 13.0% of which organic growth was 6.6%, currency effects was -2.3% and acquired growth was 8.7%

Online sales continued to be a growth driver

Offline sales declined in line with normal market trend

DIBkunnskap AS performed as expected

GROUP

173 190 189 212 178 193 189 234 2010

50

100

150

200

250

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

Net Sales, SEKm +13%


GROUP

11

Adjusted EBITA improved by 11.4 % to SEK 70 m (63)

Adjusted EBITA margin declined to 35.0 % (35.5), with DIBkunnskap AS having a minor dilution effect of 1 pp on group level as earlier announced

Margin still on a good level

Net sales growth, better product mix and our strive for operational excellence had a positive impact on margin

60 74 59 88 63 77 60 95 70

35%39%

31%

42%36%

40%32%

41%35%

0

10

20

30

40

50

60

70

80

90

100

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

Adjusted EBITA and margin, SEKm and %

Key comments


Better product mix and operational excellence had a positive impact

12

89%

13% 11%

0%

20%

40%

60%

80%

100%

Q2 2020 Q2 2021

Sales split online/offline, %

Online Offline

SALES SPLIT

93%

7% 7%

0%

20%

40%

60%

80%

100%

Q2 2020 Q2 2021

Sales split subscription/non-subscription, %

Subscription Non-subscription

87% 93%


Typical high level of online sales in the second quarter

DENMARK

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Key comments

Organic growth was 5%, however currency effects have a negative impact of -5%

Organic growth driven by online sales

Adjusted EBITA flat on a high level

99 110 103 113 98 108 100 111 980

20

40

60

80

100

120

Q22019

Q32019

Q42019

Q12020

Q22020

Q32020

Q42020

Q12021

Q22021

Net Sales, SEKm

41 46 34 48 40 47 33 47 40

41% 42%

33%

43%40%

44%

33%

43%40%

0

10

20

30

40

50

Q22019

Q32019

Q42019

Q12020

Q22020

Q32020

Q42020

Q12021

Q22021

Adjusted EBITA, SEKm and %

0%

0 pp


Organic growth was 5 %

SE/NO

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74 79 87 99 79 85 89 122 1030

20

40

60

80

100

120

140

Q22019

Q32019

Q42019

Q12020

Q22020

Q32020

Q42020

Q12021

Q22021

Net Sales, SEKm

20 28 25 40 23 30 27 47 31

26%

35%

29%

41%

30%35%

31%

39%

30%

0

10

20

30

40

50

Q22019

Q32019

Q42019

Q12020

Q22020

Q32020

Q42020

Q12021

Q22021

Adjusted EBITA, SEKm and margin, %

+29% 0 pp

Key comments

9% 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

Acquired growth from DIBkunnskap AS contributed with 19%

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


Acquired growth contributes with 19%

GROUP

15

Key comments

Adjusted operating cash flow decreased by 22%Timing effects impacted adjusted operating cash flow

Adjusted operating cash flow LTM has increased

Cash flow still strongDividend of 98 MSEK paid out in May

Leverage at 3.0, in line with financial target, also after the acquisition of DIBkunnskap

Will decrease after next invoicing season

182 109 170 49

-1

192 104 38

25% 2%

156%173%

66%

263%

98%

46%

0

50

100

150

200

250

300

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

Adj. operating cash flow, SEKmand cash conversion, %


Adjusted operating cash flow LTM has increased


In DK, a majority of our users are now using the enhanced platform

- Municipality product to be launched second half 2021

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Stay even closer to the customers and provide solutions for their challenges of

today and possibilities of tomorrow

3

SE/NO segment has performed well– Gaining market shares in public sector,

municipalities and EHS vertical

– DIBkunnskap AS performs as expected

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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For legal and tax professionals in Denmark and Sweden

PUBLIC CONTENT SOURCES

PUBLIC

PROPRIETARY CONTENT

CORPORATE

➔>1,500 expert authors

➔~80 in-house editorial staff

Enabling users to make better decisions, faster – every day

Legal practitioners

Accounting and audit firms

Nordic blue-chips

Small & medium enterprises

CourtsGovernment

administration

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 2020

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 2020

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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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Q2 2021 PRESENTATION 2 - karnovgroup.com