FULLTEXT DEL 1 AV 1
Kvartalsrapport Q1 2025
===== SIDA 1 ===== JANUARY – MARCH 2025 Strong cash flow and margins ORGANIC GROWTH ADJUSTED EBITA MARGIN LEVERAGE ===== SIDA 2 ===== 2 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 FIRST QUARTER The Group’s net sales increased by 6.5% to SEK 673 m (632). Organic growth (constant currency) was 2.7%. Currency effect was -0.4%. Acquired growth was 4.2%. The Group’s adjusted EBITA amounted to SEK 175 m (144) with adjusted EBITA margin of 26.0% (22.7). The Group’s EBIT amounted to SEK 92 m (55). Profit for the period amounted to SEK 77 m (-12). Earnings per share before and after dilution amounted to SEK 0.72 (-0.11). Adjusted free cash flow amounted to SEK 245 m (107). BUSINESS HIGHLIGHTS Customers are adopting our AI assistant in all markets and usage is increasing steadily. We progress in line with the AI roadmap, and we will launch additional value to all our customers this year. Renewals of annual online subscriptions have generated a strong free cash flow in the first quarter. Our progress with the two cost-efficiency initiatives has generated annual run-rate synergies of SEK 187 m by the end of the first quarter. The synergies effect is the main driver for the improvement in adjusted EBITA margin. . KEY FINANCIAL RATIOS FOR THE GROUP Jan-Dec MSEK 2025 2024 Δ% 2024 Net sales 672.5 631.7 6.5% 2,592.7 Organic growth, % 2.7% 2.5% 2.8% Adjusted EBITA 174.8 143.5 21.7% 580.6 Adjusted EBITA margin, % 26.0% 22.7% 22.4% EBIT 91.6 54.9 66.8% 146.0 EBIT margin, % 13.6% 8.7% 5.6% Profit for the period 77.4 -11.8 755.9% -33.1 Earnings per share, after dilution, SEK 0.72 -0.11 754.5% -0.31 Adjusted free cash flow 245.1 106.6 129.7% 298.8 Q1 ===== SIDA 3 ===== 3 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 In the first quarter, the adjusted EBITA margin improved to 26% and we achieved an organic growth of 3%. Online sales increased by 11%, thanks to volume growth and uplifts from AI sales. We deliver mission-critical legal knowledge to our customers, while investing in our AI roadmap to generate even more value. Our cost-efficiency efforts are coming through, improving the margins. STRONG ONLINE SALES GROWTH AND IMPROVED MARGINS Our customers are adopting our AI assistant with strong positive feedback, confirming the efficiency gains. User statistics show that the AI assistant is being used both regularly and with increasing frequency. The Group’s net sales amounted to SEK 673 m in the first quarter, an increase driven mainly by strong online sales in Region North including AI uplifts as well as acquired growth from the carved-out Schultz business. The strong performance in Region North is however partly offset by weak offline sales in Region South, resulting in organic growth of 3% in the quarter. The Group’s adjusted EBITA margin reached 26% in the first quarter, an improvement of more than 3 percentage points compared to the first quarter last year. The improvement is mainly the result of positive synergies effects thanks to our cost-efficiency efforts across the Group. We achieved an adjusted free cash flow of SEK 245 m in the first quarter, driven mainly by renewals of annual subscriptions to our online solutions. Leverage was 2.4x adjusted EBITDA LTM by the end of the quarter. We intend to allocate our free cash flow to achieve further cost- synergies and enhance our AI solutions, benefitting all stakeholders. COMMON AI ROADMAP WITH LOCAL CUSTOMER VALUE We have an ambitious AI roadmap and will launch additional value to all our customers this year. In February, we advanced our AI ambitions launching our Group AI product organisation. Now, we are preparing our first Group-wide native AI platform. The platform is based on our success in Region North and combines a common user interface with our locally authored proprietary content for great local customer value. Development has been initiated and will be ongoing during 2025. With a common AI platform, we can accelerate development of new features, leverage economies-of-scale and knowledge, and continue to harmonise technological platforms across the Group. COST-EFFICIENCY EFFORTS GENERATE EXPECTED SYNERGIES We progress with our cost-efficiency initiatives. The effect of the synergies is coming through as expected, improving the margins. By the end of the first quarter, the annual run-rate synergies from our initiatives amounted to SEK 187 m. We reiterate our ambition to generate synergies of SEK 230 m on annual run-rate basis by the end of 2026. As announced earlier, the synergies are generated by organisational restructuring, product rationalisation, process streamlining and harmonisation of IT infrastructure. NEXT PHASE IN REGION SOUTH In May, the CEO of Region South, Guillaume Deroubaix, will leave Karnov Group. As we have concluded the merger in Spain and successfully relaunched the three flagship products in France, we can now move on to the next phase of developing Region South: from now on our Country Managers in Spain and France will report directly to CEO Pontus Bodelsson. Our customers are adopting our AI assistant with strong positive feedback, confirming the efficiency gains. User statistics show that the AI assistant is being used both regularly and with increasing frequency. Pontus Bodelsson, President and CEO 3% ORGANIC GROWTH Q1 A solid increase from the previous year driven by strong online sales including AI uplifts. 26% ADJUSTED EBITA MARGIN Q1 An improvement of more than 3 percentage points thanks to our cost-efficiency efforts and operational leverage. 2.4x LEVERAGE Q1 Leverage was 2.4x adjusted EBITDA LTM by the end of Q1, thanks to strong cash generation from renewed annual online subscriptions. ===== SIDA 4 ===== 4 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 NET SALES AND GROWTH For the quarter, January-March 2025, net sales increased by SEK 41 m to SEK 673 m (632). Organic growth on a constant currency basis was 2.7 percent and currency effects had an impact on net sales of -0.4 percent. Acquired growth contributed with 4.2 percent. Online sales amounted to 84 percent (81) of total net sales in the quarter. Net sales growth within the Group is driven by increased online sales of legal research solutions, including uplift to AI-based solutions and new sales to an expanding customer base. Our EHS businesses and DIBkunnskap continue to be successful in new sales and support the Group’s growth. OPERATING PROFIT (EBIT) EBITA for the quarter amounted to SEK 147 m (107) and EBITA margin amounted to 21.9 percent (17.0). The EBITA performance includes items affecting comparability of SEK 28 m (36) relating to the integration and Acceleration Initiative in Region South, mainly severance payments. Adjusted EBITA amounted to SEK 175 m (144) and adjusted EBITA margin amounted to 26.0 percent (22.7). Synergies from the two cost-efficiency initiatives are coming through as expected, lowering the Group’s cost-base. Moreover, the product mix with higher portion of online sales contributes positively to the margins. Depreciations have increased which partly off-sets the effect of synergies. Operating profit (EBIT) was SEK 92 m (55) for the quarter. SYNERGIES FROM THE ACCELERATION INITIATIVE The realised synergies in the first quarter amounted to SEK 18 m (EUR 1.6 m). The annual run-rate cost synergies by the end of the first quarter amounted to SEK 85 m (EUR 7.6 m). Cost-to-achieve amounted to SEK 7.1 m (EUR 0.6 m) in the first quarter. Jan-Dec MSEK 2025 2024 Δ% 2024 Net sales 672.5 631.7 6.5% 2,592.7 Organic growth, % 2.7% 2.5% 2.8% EBITA 147.2 107.3 37.2% 365.5 EBITA margin, % 21.9% 17.0% 14.1% Adjusted EBITDA 220.9 182.3 21.2% 746.6 Adjusted EBITDA margin, % 32.8% 28.9% 28.8% Adjusted EBITA 174.8 143.5 21.7% 580.6 Adjusted EBITA margin, % 26.0% 22.7% 22.4% EBIT 91.6 54.9 66.8% 146.0 EBIT margin, % 13.6% 8.7% 5.6% Q1 MSEK 2025 2024 2024 Realised synergies 18.0 3.4 32.0 Annual run-rate synergies 85.4 3.4 66.7 Cost to achieve 7.1 12.7 46.2 Q1 Jan-Dec NET SALES BY SEGMENT Q1 (%) 3% ORGANIC GROWTH NET SALES PER QUARTER, MSEK 26% ADJUSTED EBITA MARGIN ADJUSTED EBITA, MSEK AND MARGIN, % PER QUARTER 50% 50% Region North Region South 632 623 648 691 673 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 144 132 143 162 175 23% 21% 22% 23% 26% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 ===== SIDA 5 ===== 5 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 SHARE OF PROFIT IN ASSOCIATED COMPANIES Share of profit in associated companies amounted to SEK -1 m (-1) in the quarter. NET FINANCIAL ITEMS Net financial items for the quarter amounted to SEK 6 m (-70). The interest expenses amounted to SEK -37 m (-38) in line with the corresponding quarter previous year. The quarter was positively impacted by currency adjustments of SEK 39 m (-33) relating to long- term loans in EUR. PROFIT BEFORE AND AFTER TAX, EARNINGS PER SHARE Profit before tax for the quarter increased by SEK 112 m to SEK 96 m (-16). Profit after tax for the quarter was SEK 77 m (-12). Taxes amounted to SEK -19 m (4). Earnings per share after dilution was SEK 0.72 (-0.11) in the quarter. CASH FLOW AND INVESTMENTS Cash flow from operating activities amounted to SEK 262 m (131), driven by higher operating profit and positive changes in net working capital thanks to strong cash collection from renewed annual online subscriptions. Interest expenses and tax payments were lower in the quarter compared to previous year. Adjusted free cash flow for the quarter improved to SEK 245 m (107), driven by stronger operating cash flow and lower lease payments. Total investments for the quarter amounted to SEK 36 m (46). The investments during the quarter relate mainly to capitalised development. Total financing for the quarter amounted to SEK -485 m (-20). Thanks to the Group’s cash pool solution, which was implemented at the end of 2024 and gathers all Group entities’ liquidity in a common cash pool, we have decreased the utilised credit facilities in the quarter. ADJUSTED FREE CASH FLOW FINANCIAL POSITION Net debt was SEK 1,938 m at the end of the period. The net debt has increased by SEK 168 m compared to the end of the corresponding quarter previous year. The leverage at the end of the period, based on proforma adjusted EBITDA LTM excluding leasing liabilities, was 2.4 times (2.7). Cash and cash equivalents at the end of the period amounted to SEK 140 m (524) and the Group had at the end of March 2025 unutilized credit lines of EUR 70 m (70). NET DEBT * Please note that LTM Adjusted EBITDA includes proforma numbers from Schultz acquisition which has an impact on leverage ratio for Q1 2025. Jan-Dec MSEK 2025 2024 2024 Cash flow from operating activities 266.4 131.2 315.5 Acquisition of intangible and tangible assets -35.5 -41.6 -167.7 Payment of lease liabilities -13.4 -19.2 -64.1 Free cash flow 217.5 70.4 83.7 Items affecting comparability 27.6 36.2 215.1 Adjusted free cash flow 245.1 106.6 298.8 Q1 MSEK 31 Mar 2025 31 Mar 2024 31 Dec 2024 Total borrowings 2,077.8 2,293.2 2,685.8 Cash and cash equivalents 139.9 523.7 402.8 Net debt 1,937.9 1,769.5 2,283.0 Leverage ratio * 2.4 2.7 3.0 NET SALES SPLIT ONLINE/OFFLINE PER Q1, % SEK 245 m ADJUSTED FREE CASH FLOW 2.4x LEVERAGE 84% 16% Online Offline ===== SIDA 6 ===== 6 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 NET SALES AND GROWTH Net sales for the quarter increased by 15.0 percent to SEK 338 m (294). Organic growth was 7.7 percent while currency effects had a negative impact of 0.4 percent. Acquired growth contributed with 7.7 percent. Online sales accounted for 89 percent (86) of total net sales in the quarter. Organic growth is driven by online sales, mainly within the legal research area. Our solutions are mission-critical for our customers. During the quarter, we have continued to uplift customers to our AI package. We have sold the AI package to several authorities and administrations, including municipalities, that are also recognizing the significant value in our AI assistant. Karnov has progressed further with the integration of the carved-out Schultz legal information business. During the quarter, the Schultz business provided net sales of SEK 20 m. OPERATING PROFIT (EBIT) EBITA for the quarter amounted to SEK 157 m (123) and EBITA margin amounted to 46.6 percent (41.9). The EBITA performance includes no items affecting comparability (4). Adjusted EBITA amounted to SEK 157 m (127) and adjusted EBITA margin amounted to 46.6 percent (43.2). The main margin driver is operational leverage from higher net sales. Achieved synergies from the Acceleration Initiative are further contributing positively, along with product mix as we have a higher portion of online sales in the quarter. During the quarter, the Schultz business provided adjusted EBITA of SEK 4 m. Operating profit (EBIT) was SEK 110 m (83) for the quarter. Jan-Dec MSEK 2025 2024 Δ% 2024 Net sales 337.5 293.6 15.0% 1,210.7 Organic growth, % 7.7% 5.7% 7.0% Adjusted EBITDA 180.9 146.3 23.6% 605.7 Adjusted EBITDA margin, % 53.6% 49.8% 50.0% Adjusted EBITA 157.2 126.9 23.9% 520.7 Adjusted EBITA margin, % 46.6% 43.2% 43.0% EBIT 110.1 83.2 32.3% 296.5 EBIT margin, % 32.6% 28.3% 24.5% Q1 NET SALES PER QUARTER, MSEK ADJUSTED EBITA, MSEK AND MARGIN, % PER QUARTER Region North is specialised in online and offline legal solutions; the environmental, health and safety compliance; audit and accounting solutions; and e-courses. The segment provides online tools for the broad legal services market, including contract templates. The segment includes Karnov Group Denmark, Norstedts Juridik, DIBkunnskap, Notisum, Echoline, QSE Conseil, DIB Viden and BELLA Intelligence. 294 275 321 322 338 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 127 120 141 133 157 43% 44% 44% 41% 47% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 ===== SIDA 7 ===== 7 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 NET SALES AND GROWTH Net sales for the quarter were SEK 335 m (338). The organic growth was -1.6 percent while currency effects had a negative impact of 0.5 percent. Acquired growth contributed with 1.2 percent. Online sales accounted for 80 percent (76) of total net sales in the quarter. Our French business delivers organic growth in the quarter, driven mainly by new sales of online solutions as we attract new customers, while offline sales declined slightly. Our Spanish business had online sales in line with the corresponding quarter previous year, while offline sales declined in the quarter. In Spain, we have launched the new Infinita product, which is our first top-tier product containing all mission-critical authored content from the merged businesses with AI functionality. OPERATING PROFIT (EBIT) EBITA for the quarter amounted to SEK 13 m (13) and EBITA margin amounted to 3.9 percent (3.9). The EBITA performance includes items affecting comparability of SEK 28 m (22) relating to integration and restructuring expenses. Adjusted EBITA amounted to SEK 41 m (35) and adjusted EBITA margin amounted to 12.2 percent (10.5). The margin improvement is mainly driven by lower employee expenses, as synergies from the integration are coming through in Spain. Moreover, product mix with higher portion of online sales in the quarter has a positive impact on the adjusted EBITA margin. Operating profit (EBIT) was SEK -18 m (-13) for the quarter. Despite improved adjusted EBITA, EBIT declined due to higher items affecting comparability and higher non-operating Group transactions in Region South, which are offset on Group level. SYNERGIES IN REGION SOUTH The realised synergies in the first quarter amounted to SEK 23 m (EUR 2.0 m). The annual run-rate cost synergies amounted to SEK 102 m (EUR 9.1 m). Cost-to-achieve amounted to SEK 20 m (EUR 1.8 m) in the first quarter. Jan-Dec MSEK 2025 2024 Δ% 2024 Net sales 335.0 338.1 -0.9% 1,382.0 Organic growth, % -1.6% -0.1% -0.4% Adjusted EBITDA 63.1 54.7 15.4% 234.2 Adjusted EBITDA margin, % 18.8% 16.2% 16.9% Adjusted EBITA 40.8 35.4 15.3% 153.6 Adjusted EBITA margin, % 12.2% 10.5% 11.1% EBIT -18.3 -12.6 -45.2% -128.6 EBIT margin, % -5.5% -3.7% -9.3% Q1 MSEK 2025 2024 2024 Realised synergies 22.5 9.0 54.9 Annual run-rate synergies 102.2 38.4 91.4 Cost to achieve 19.7 21.9 92.5 Q1 Jan-Dec NET SALES PER QUARTER, MSEK ADJUSTED EBITA, MSEK AND MARGIN, % PER QUARTER Region South offers a wide range of online and offline solutions for legal professionals, assisting them in their research and providing qualitative advisory services. The segment provides online tools for the broad legal services market, including workflow solutions and AI- based tools. Region South also offers legal classroom training and e-courses. The segment includes Aranzadi LA LEY, Lamy Liaisons and Jusnet. 338 348 327 369 335 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 35 34 25 60 41 10% 10% 8% 16% 12% Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 ===== SIDA 8 ===== 8 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 ADJUSTED EBITA The Group functions cover the Group wide tasks such as Group Management, Information Security, Compliance, HR, Investor Relations and Group Finance functions. In the first quarter, Karnov Group has invested in exploratory AI projects to future customer value. Jan-Dec MSEK 2025 2024 Δ% 2024 Adjusted EBITA -23.2 -18.8 -23.4% -93.7 EBIT -0.2 -15.7 98.7% -21.9 Q1 Group functions is the corporate segment including costs for functions within Karnov Group that either steer or provide support to the Group. The segment also includes costs for future business opportunities as well as items affecting comparability. ===== SIDA 9 ===== 9 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 RISKS AND UNCERTAINTIES Through its operations Karnov Group is exposed to different risks, which can give rise to fluctuations in earnings and cash flow. Material risks and uncertainties include sector and market- related risks, business-related risks and financial risks. Karnov is not directly impacted by conflicts such as the invasion of Ukraine or expanded conflict in the Middle East region and has no direct exposure towards any of the involved countries. Furthermore, Karnov is primarily an online service company with operations in EU markets, and not directly exposed to risks of tariffs. Karnov’s significant risks and risk management are described on page 69-70 in the 2024 Annual report, available at the Company’s website www.karnovgroup.com. SEASONAL VARIATIONS Typically, a significant proportion of Karnov Group’s online contracts in Region North are renewed and invoiced primarily during the fourth quarter, impacting cash flow during the fourth and first quarters. Online contracts in Region South are renewed and invoiced predominantly in the first quarter, impacting cash flow during the first and second quarters. Online net sales are accrued according to the terms of the agreement and therefore are not exposed to any seasonality. Offline net sales are exposed to seasonality where the first quarter is significantly stronger, driven by a higher share of book sales early in the year. EMPLOYEES Average number of Full-Time Employees (FTEs) in the first quarter amounted to 1,199 (1,209). The decrease compared to the fourth quarter 2024 is due to organisational changes from the cost- efficiency initiatives. On average during the first quarter, 58% (58) of the workforce were women and 42% (42) men. SHARES, SHARE CAPITAL AND SHAREHOLDERS Karnov Group’s share was listed on Nasdaq Stockholm on 11 April 2019, Mid Cap segment, under the ticker KAR. On 31 March 2025, the total number of shares and votes in Karnov Group AB (publ) amounts to 108,102,047 shares and 107,898,735.2 votes. Each share has a quotient value of approximately SEK 0.015385. The total number of shares consists of 107,876,145 ordinary shares, which carry one vote per share, and 225,902 shares of series C, which carry one-tenth of a vote per share. A detailed description of changes in the share capital is available on the Company’s website, www.karnovgroup.com/en/share-capital-development/. On 31 March 2025, the Company had 2,256 known shareholders. The five largest shareholders in Karnov Group AB (publ) were Long Path Partners, Invesco, Carnegie Fonder, Anabranch Capital and Swedbank Robur Fonder. FINANCIAL TARGETS The Board of Directors has adopted the following financial targets: • Net sales organic annual growth of 4-6% in the medium term. • Adjusted EBITA margin in excess of 25% in the medium term and in excess of 30% in the long term. • Ratio of Net debt to LTM Adjusted EBITDA, excluding leasing liabilities, of no more than 3.0. This ratio may temporarily be exceeded, for example as a result of acquisitions. • The objective is to distribute 30–50% of the annual net profit, after considering indebtedness and future growth opportunities, including acquisitions. ESG STRATEGY Being active within the industry of legal knowledge, Karnov’s ESG strategy is an integral part of the business strategy and is closely linked to the Group’s vision, mission, and values. It is also closely linked to five of the UN SDG Goals and in particular SDG 16, Peace, justice and strong institutions. The core of Karnov’s business is to make the true pillar of democracy - the rule of law - accessible, sharable and debatable, thereby enabling our customers to make better decisions faster. This is how we facilitate access to justice and why Karnov Group can have an impact led approach to ESG: to clear the path to justice, we contribute with knowledge for legal professionals, whilst balancing economic growth and positive social impact. INCENTIVE PROGRAMS Karnov Group currently has two long-term incentive programs, LTIP 2023 and LTIP 2024, which are share saving programs. The purpose of the programs is to encourage ownership amongst the Company’s employees, retain competent employees, facilitate recruitment, increase the alignment of interest between the employees and the Company’s shareholders and increase motivation to reach or exceed the Company’s financial targets. The employees participating in the program have allocated acquired or already held ordinary shares to the program (so-called savings shares). 18 employees participate in LTIP 2023 and 18 employees participate in LTIP 2024. The participants have allocated a total of 174,130 savings shares to the programs. Full allotment would mean that the total number of shares under the program will amount to no more than 659,400 ordinary shares, corresponding approximately 0.6 per cent of the total number of shares outstanding in the Company. For more information see www.karnovgroup.com/en/incentive- program/ ===== SIDA 10 ===== 10 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 RELATED-PARTY TRANSACTIONS Karnov Group did not undertake any significant transactions with related parties in the first quarter 2025 except from compensation and benefits to the Board members and managing director received as a result of their membership of the Board, employment with Karnov Group or shareholdings in Karnov Group AB (publ). SIGNIFICANT EVENTS First quarter • Karnov Group engaged Steve Obenski as Senior AI Advisor to the Board of Directors. Events after the end of the period • No significant events after the end of the period. PARENT COMPANY The operating profit (EBIT) for the quarter amounted to SEK -1 m (-16). OUTLOOK Karnov Group does not provide financial forecasts. The report may contain forward-looking information based on Management’s current expectations. Although Management believes the expectations expressed in such forward-looking information are reasonable, there are no assurances that these expectations will be correct. Consequently, future outcomes may vary considerably compared to the forward-looking information due to, among other things, changed market conditions for Karnov Group’s offerings and more general changes to economic, market and competitive conditions, changes to regulatory requirements or other policy measures and exchange rate fluctuations. REVIEW This interim report has not been subject to a review by the Company’s auditors. DISCLOSURE This interim report contains inside information that Karnov Group AB (publ) is required to make public pursuant to the EU Market Abuse Regulation (MAR). The information was submitted for publication by the contact person below on 14 May 2025 at 07.45 AM CEST. Karnov Group AB (publ) Stockholm, 14 May 2025 Pontus Bodelsson President and CEO FOR FURTHER INFORMATION, PLEASE CONTACT: Pontus Bodelsson, President and CEO +46 709 957 002 pontus.bodelsson@karnovgroup.com Magnus Hansson, CFO +46 708 555 540 magnus.hansson@karnovgroup.com Erik Berggren, Head of Investor Relations +46 707 597 668 erik.berggren@karnovgroup.com FINANCIAL CALENDAR Annual General Meeting 2025 15 May 2025 Interim report January-June 2025 21 August 2025 Interim report January-September 2025 12 November 2025 Q1 PRESENTATION WEBCAST Karnov Group will present the fourth quarter for analysts and investors via a webcast teleconference on 14 May at 9:00 AM CEST. To participate, use the following link: https://karnov-group.events.inderes.com/q1-report-2025 or register here for dial-in numbers: https://conference.inderes.com/teleconference/?id=5003853. The presentation will also be available on www.financialhearings.com ===== SIDA 11 ===== 11 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 Jan-Dec MSEK Note 2025 2024 2024 Net sales 3 672.5 631.7 2,592.7 Total revenue 672.5 631.7 2,592.7 Costs of goods sold -87.4 -88.8 -349.0 Employee benefit expenses -285.0 -276.5 -1,156.0 Depreciations and amortisations -101.7 -91.2 -385.5 Other operating income and expenses -106.8 -120.3 -556.2 Operating profit (EBIT) 91.6 54.9 146.0 Share of profit in associated companies -1.4 -1.3 1.4 Financial income 42.3 2.1 14.8 Financial expenses -36.2 -71.7 -195.7 Profit before tax 96.3 -16.0 -33.5 Tax on profit for the period -18.9 4.2 0.4 Profit for the period 77.4 -11.8 -33.1 Other comprehensive income: Items that may be reclassified to the income statement: Exchange differences on translation of foreign operations -110.0 72.8 60.4 Actuarial gains/losses on defined benefit plans - - 1.8 Other comprehensive income for the period -110.0 72.8 62.2 Total comprehensive income for the period -32.6 61.0 29.1 Profit for the period is attributable to: Owners of Karnov Group AB (publ) 77.4 -11.7 -33.1 Non-controlling interests - -0.1 - Profit for the period 77.4 -11.8 -33.1 Total comprehensive income for the period is attributable to: Owners of Karnov Group AB (publ) -32.6 61.0 29.1 Total comprehensive income -32.6 61.0 29.1 Earnings per share, basic, SEK 0.72 -0.11 -0.31 Earnings per share, after dilution, SEK 0.72 -0.11 -0.31 Weighted average number of ordinary shares (thousands) 107,876 107,876 107,876 Effect of performance shares (thousands) 226 226 226 Weighted average number of ordinary shares adjusted for dilution (thousands) 108,102 108,102 108,102 Q1 ===== SIDA 12 ===== 12 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 MSEK Note 31 Mar 2025 31 Mar 2024 31 Dec 2024 ASSETS: Non-current assets Goodwill 3,451.9 3,347.2 3,617.8 Other intangible assets 2,215.8 2,259.1 2,364.2 Right-of-use assets 145.5 197.8 161.4 Property, plant and equipment 34.5 40.2 37.4 Investments in associated companies 4 36.9 47.9 38.3 Other financial investments 4 13.0 13.0 13.0 Loans to associated companies 4 21.9 25.5 26.0 Deposits 4 12.5 12.3 13.1 Deferred tax assets 171.9 139.2 184.4 Total non-current assets 6,103.9 6,082.2 6,455.6 Current assets Inventories 19.5 20.4 18.8 Trade receivables 4 445.3 446.6 450.7 Prepaid expenses 82.5 81.0 69.1 Other receivables 4 78.4 38.1 72.7 Current tax receivables 37.2 39.3 19.4 Cash and cash equivalents 4 139.9 523.7 402.8 Total current assets 802.8 1,149.1 1,033.5 TOTAL ASSETS 6,906.7 7,231.3 7,489.1 ===== SIDA 13 ===== 13 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 MSEK Note 31 Mar 2025 31 Mar 2024 31 Dec 2024 EQUITY AND LIABILITIES: Share capital 1.7 1.7 1.7 Share premium 2,654.0 2,654.0 2,654.0 Treasury shares 0.0 0.0 0.0 Reserves -303.0 -180.6 -193.0 Retained earnings including net profit for the period -9.2 -75.6 -89.2 Equity attributable to the parent company’s shareholders 2,343.5 2,399.5 2,373.5 Non-controlling interests - -0.1 - Total equity 2,343.5 2,399.4 2,373.5 Borrowing from credit institutions 4 1,969.3 2,206.8 2,570.9 Lease liabilities 4 124.2 170.6 131.9 Deferred tax liabilities 293.5 342.8 320.6 Provisions 95.2 80.6 102.1 Other non-current liabilites 4 39.7 52.4 40.2 Total non-current liabilities 2,521.9 2,853.2 3,165.7 Borrowing from credit institutions 4 108.5 86.4 114.9 Trade payables 4 73.6 98.9 111.9 Current tax liabilities 45.4 1.9 36.0 Accrued expenses 4 380.3 460.6 451.1 Prepaid income 1,232.6 1,190.6 985.2 Lease liabilities 4 46.8 53.4 52.5 Other current liabilities 4 154.1 86.9 198.3 Total current liabilities 2,041.3 1,978.7 1,949.9 TOTAL EQUITY AND LIABILITIES 6,906.7 7,231.3 7,489.1 ===== SIDA 14 ===== 14 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 MSEK Share capital Share premium Treasury shares Reserves Retained earnings Equity attributable to the parent company’s shareholders Non- controlling interests Total equity Balance at January 1, 2025 1.7 2,654.0 0.0 -193.0 -89.2 2,373.5 - 2,373.5 Profit for the period - - - - 77.4 77.4 - 77.4 Other comprehensive income for the period - - - -110.0 - -110.0 - -110.0 Total comprehensive income/loss - - - -110.0 77.4 -32.6 - -32.6 Transaction with shareholders in their capacity as owners: Sharebased payment - - - - 2.6 2.6 - 2.6 Total transaction with shareholders - - - - 2.6 2.6 - 2.6 Closing balance at March 31, 2025 1.7 2,654.0 0.0 -303.0 -9.2 2,343.5 - 2,343.5 MSEK Share capital Share premium Treasury shares Reserves Retained earnings Equity attributable to the parent company’s shareholders Non- controlling interests Total equity Balance at January 1, 2024 1.7 2,654.0 0.0 -253.4 -65.3 2,337.0 - 2,337.0 Profit for the period - - - - -11.7 -11.7 -0.1 -11.8 Other comprehensive income for the period - - - 72.8 - 72.8 - 72.8 Total comprehensive income/loss - - - 72.8 -11.7 61.1 -0.1 61.0 Transaction with shareholders in their capacity as owners: Sharebased payment - - - - 1.4 1.4 - 1.4 Total transaction with shareholders - - - - 1.4 1.4 - 1.4 Closing balance at March 31, 2024 1.7 2,654.0 0.0 -180.6 -75.6 2,399.5 -0.1 2,399.4 Equity attributable to the parent company's shareholders Equity attributable to the parent company's shareholders ===== SIDA 15 ===== 15 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 . Jan-Dec MSEK 2025 2024 2024 Operating profit (EBIT) 91.6 54.9 146.0 Non-cash items 102.3 91.6 408.7 Effect of changes in working capital: Change in inventories -1.3 -1.3 0.3 Change in receivables -14.7 -49.9 -88.9 Change in trade payables and other payables -156.9 -107.3 40.7 Provisions paid - - -10.7 Change in prepaid income 310.6 220.4 26.6 Net effect of changes in working capital 137.7 61.9 -32.0 Net financial items, paid -31.1 -32.7 -142.3 Corporate tax paid -34.1 -44.5 -64.9 Cash flow from operating activities 266.4 131.2 315.5 Business combinations - -0.1 -428.4 Other financial investments - -4.3 -5.8 Acquisition of intangible assets -34.5 -41.6 -163.3 Acquisition of property, plant and equipment -1.0 - -4.4 Cash flow from investing activities -35.5 -46.0 -601.9 Repayment long-term debt -476.5 - -83.2 Proceeds long-term debt - - 491.4 Payment of lease liabilities -13.4 -19.2 -64.1 Change in long-term receivables - -0.1 - Payment of contingent considerations - -0.9 -108.3 Cash flow from financing activities -489.9 -20.2 235.8 Cash flow for the period -259.0 65.0 -50.6 Cash and cash equivalents at the beginning of the period 402.8 450.6 450.6 Exchange-rate differences in cash and cash equivalents -3.9 8.1 2.8 Cash and cash equivalents at the end of the period 139.9 523.7 402.8 Q1 ===== SIDA 16 ===== 16 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 NOTE 1 ACCOUNTING POLICIES The consolidated interim financial statements for Karnov Group have been prepared in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU, RFR 1 Supplementary Accounting Regulations for Groups and the Swedish Annual Accounts Act. The accounting policies used for this interim report 2025 are the same as the accounting policies used for the annual report 2024 to which we refer for a full description. The interim financial statements for the parent company have been prepared in accordance with RFR 2, Accounting for Legal Entities, and the Swedish Annual Accounts Act. NOTE 2 CRITICAL ESTIMATES AND JUDGEMENTS Preparation of financial statements requires the company management to make assessments and estimates along with assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income, and expenses. The actual outcome may differ from these estimates. The critical assessments and sources of uncertainty in the estimates are the same as in the most recent annual report. See the Annual report 2024 for further details regarding critical estimates and judgements. ===== SIDA 17 ===== 17 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 NOTE 3 SEGMENT REPORTING The Group CEO has been identified as the chief operating decision maker and assesses the financial performance and position of the Group and makes strategic decisions. Segment profits are monitored to Adjusted EBITA. Income statement items below Adjusted EBITA, balance sheet and cash flows are entirely monitored on Group level. Karnov Group’s business operations are in general independent of differences in products and channels and the Group therefore monitors the overall net sales distribution trend between online and offline products at Group level. MSEK 2025 2024 2025 2024 2025 2024 2025 2024 Net sales specified on product categories: Online 298.9 251.9 268.3 257.6 - - 567.2 509.5 Offline 38.6 41.7 66.7 80.5 - - 105.3 122.2 Net sales 337.5 293.6 335.0 338.1 - - 672.5 631.7 Adjusted EBITDA 180.9 146.3 63.1 54.7 -23.1 -18.7 220.9 182.3 Depreciations and amortisations -23.7 -19.4 -22.3 -19.3 -0.1 -0.1 -46.1 -38.8 Adjusted EBITA 157.2 126.9 40.8 35.4 -23.2 -18.8 174.8 143.5 Amortisations from acquisitions -36.2 -33.1 -19.4 -19.3 - - -55.6 -52.4 Items affecting comparability - -3.8 -27.6 -22.1 - -10.3 -27.6 -36.2 Non-operating group transactions -10.9 -6.8 -12.1 -6.6 23.0 13.4 - - Operating profit (EBIT) 110.1 83.2 -18.3 -12.6 -0.2 -15.7 91.6 54.9 Share of profit in associated companies -1.4 -1.3 Net financial items 6.1 -69.6 Profit before tax 96.3 -16.0 Tax on profit for the period -18.9 4.2 Profit for the period 77.4 -11.8 Q1 Q1Q1Q1 North South Group functions Total ===== SIDA 18 ===== 18 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 NOTE 4 FINANCIAL INSTRUMENTS At amortised cost Fair value through profit or loss Reported value Level 1 Level 2 Level 3 At amortised cost Fair value through profit or loss Reported value Level 1 Level 2 Level 3 MSEK FINANCIAL ASSETS Investments in associated companies - 36.9 36.9 - - 36.9 - 47.9 47.9 - - 47.9 Other financial investments - 13.0 13.0 - - 13.0 - 13.0 13.0 - - 13.0 Loans to associated companies 21.9 - 21.9 - - - 25.5 - 25.5 - - - Deposits 12.5 - 12.5 - - - 12.3 - 12.3 - - - Trade receivables 445.3 - 445.3 - - - 446.6 - 446.6 - - - Other receivables 78.4 - 78.4 - - - 38.1 - 38.1 - - - Cash and cash equivalents 139.9 - 139.9 - - - 523.7 - 523.7 - - - Total financial assets 698.0 49.9 747.9 - - 49.9 1,046.2 60.9 1,107.1 - - 60.9 FINANCIAL LIABILITIES Borrowing from credit institutions 2,077.8 - 2,077.8 - - - 2,293.2 - 2,293.2 - - - Lease liabilities 171.0 - 171.0 - - - 224.0 - 224.0 - - - Other non-current liabilites 38.0 1.7 39.7 - - 1.7 52.4 - 52.4 - - - Trade payables 73.6 - 73.6 - - - 98.9 - 98.9 - - - Accrued expenses 380.3 - 380.3 - - - 460.6 - 460.6 - - - Other current liabilities 145.1 9.0 154.1 - - 9.0 80.2 6.7 86.9 - - 6.7 Total financial liabilities 2,885.8 10.7 2,896.5 - - 10.7 3,209.3 6.7 3,216.0 - - 6.7 Balance at, January 1 - - - - - 40.0 - - - - - 54.5 Fair value through profit or loss - - - - - -1.4 - - - - - -1.3 Currency exchange differences - - - - - 0.6 - - - - - 1.0 Closing balance at, March 31 - - - - - 39.2 - - - - - 54.2 Q1 2025 Q1 2024 ===== SIDA 19 ===== 19 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 NOTE 5 ALTERNATIVE PERFORMANCE MEASURES Karnov’s financial statements include alternative performance measures, which complement the measures that are defined or specified in applicable rules for financial reporting. Alternative performance measures are presented since, in their context, they provide clearer or more in-depth information than the measures defined in applicable rules for financial reporting. The alternative performance measures are derived from the Group’s consolidated financial reporting and are not measured in accordance with IFRS. Karnov’s definition of these measures, which are not described under IFRS, is provided in the section Financial Definitions. Reconciliations of the alternative performance measures are presented below. MSEK 2025 2024 2025 2024 2025 2024 2025 2024 Organic business 316.3 293.6 332.7 335.6 - - 649.0 629.2 Acquired business 22.6 - 4.0 - - - 26.6 - Currency -1.4 - -1.7 2.5 - - -3.1 2.5 Net sales 337.5 293.6 335.0 338.1 - - 672.5 631.7 Total net sales split, % Organic growth, % 7.7% 5.7% -1.6% -0.1% - - 2.7% 2.5% Acquired business, % 7.7% - 1.2% - - - 4.2% - Currency effect, % -0.4% - -0.5% 0.7% - - -0.4% 0.4% Total growth, % 15.0% 5.7% -0.9% 0.6% - - 6.5% 2.9% EBITDA 180.9 142.5 35.5 32.6 -23.1 -29.0 193.3 146.1 EBITDA margin, % 53.6% 48.5% 10.6% 9.6% - - 28.7% 23.1% Depreciations and amortisations -23.7 -19.4 -22.3 -19.3 -0.1 -0.1 -46.1 -38.8 EBITA 157.2 123.1 13.2 13.3 -23.2 -29.1 147.2 107.3 EBITA margin, % 46.6% 41.9% 3.9% 3.9% - - 21.9% 17.0% Items affecting comparability - -3.8 -27.6 -22.1 - -10.3 -27.6 -36.2 Adjusted EBITDA 180.9 146.3 63.1 54.7 -23.1 -18.7 220.9 182.3 Adjusted EBITDA margin, % 53.6% 49.8% 18.8% 16.2% - - 32.8% 28.9% Adjusted EBITA 157.2 126.9 40.8 35.4 -23.2 -18.8 174.8 143.5 Adjusted EBITA margin, % 46.6% 43.2% 12.2% 10.5% - - 26.0% 22.7% Items affecting comparability Post-closing integration costs - - -19.7 -22.1 - -0.9 -19.7 -23.0 Restructuring costs - -3.8 -7.1 - - -9.4 -7.1 -13.2 Acquisition costs - - -0.7 - - - -0.7 - Other extraordinary items - - -0.1 - - - -0.1 - Total - -3.8 -27.6 -22.1 - -10.3 -27.6 -36.2 Items affecting comparability classification Operating costs - -3.8 -27.6 -22.1 - -10.3 -27.6 -36.2 North South Group functions Total Q1 Q1 Q1 Q1 ===== SIDA 20 ===== 20 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 NOTE 5 ALTERNATIVE PERFORMANCE MEASURES, CONT. ADJUSTED FREE CASHFLOW NET DEBT LEVERAGE RATIO * Please note that LTM Adjusted EBITDA includes proforma numbers from Schultz acquisition in 2024 which has an impact on leverage ratio for Q1 2025. Jan-Dec MSEK 2025 2024 2024 Cash flow from operating activities 266.4 131.2 315.5 Acquisition of intangible and tangible assets -35.5 -41.6 -167.7 Payment of lease liabilities -13.4 -19.2 -64.1 Free cash flow 217.5 70.4 83.7 Items affecting comparability 27.6 36.2 215.1 Adjusted free cash flow 245.1 106.6 298.8 Q1 MSEK 31 Mar 2025 31 Mar 2024 31 Dec 2024 Borrowing from credit institutions, long term 1,969.3 2,206.8 2,570.9 Borrowing from credit institutions, short term 108.5 86.4 114.9 Cash and cash equivalents -139.9 -523.7 -402.8 Net debt 1,937.9 1,769.5 2,283.0 MSEK 31 Mar 2025 31 Mar 2024 31 Dec 2024 Adjusted EBITDA LTM * 797.7 645.9 771.6 Net debt 1,937.9 1,769.5 2,283.0 Leverage ratio 2.4 2.7 3.0 ===== SIDA 21 ===== 21 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 Q1 Q4 Q3 Q2 Q1 MSEK 2025 2024 2024 2024 2024 Income statement Net sales 672.5 690.5 647.7 622.8 631.7 EBITDA 193.3 144.8 122.7 117.9 146.1 EBITDA margin, % 28.7% 21.0% 18.9% 18.9% 23.1% EBITA 147.2 99.8 80.0 78.4 107.3 EBITA margin, % 21.9% 14.5% 12.4% 12.6% 17.0% Adjusted EBITA 174.8 162.4 143.1 131.6 143.5 Adjusted EBITA margin, % 26.0% 23.5% 22.1% 21.1% 22.7% Operating profit (EBIT) 91.6 43.6 23.1 24.4 54.9 EBIT margin, % 13.6% 6.3% 3.6% 3.9% 8.7% Net financial items 6.1 -48.9 -37.6 -24.8 -69.6 Profit for the period 77.4 -9.8 -12.3 0.8 -11.8 Balance sheet Non-current assets 6,103.9 6,455.6 6,366.1 6,468.0 6,082.2 Current assets 802.8 1,033.5 908.4 1,020.7 1,149.1 Cash and cash equivalents 139.9 402.8 370.7 494.3 523.7 Equity 2,343.5 2,373.5 2,346.2 2,376.7 2,399.4 Non-current liabilities 2,521.9 3,165.7 3,131.7 3,172.0 2,853.2 Current liabilities 2,041.3 1,949.9 1,796.6 1,940.0 1,978.7 TOTAL ASSETS 6,906.7 7,489.1 7,274.5 7,488.7 7,231.3 ===== SIDA 22 ===== 22 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 Q1 Q4 Q3 Q2 Q1 MSEK 2025 2024 2024 2024 2024 Cash flow Cash flow from operating activities 266.4 209.3 -42.4 17.4 131.2 Cash flow from investing activities -35.5 -55.6 -69.8 -430.5 -46.0 Cash flow from financing activities -489.9 -122.4 -15.3 393.7 -20.2 Cash flow for the period -259.0 31.2 -127.5 -19.4 65.0 Key ratios Net working capital -1,238.5 -916.4 -888.0 -919.3 -829.5 Equity/asset ratio, % 33.9% 31.7% 32.3% 31.7% 33.2% Adjusted free cash flow 245.1 210.4 -32.1 13.9 106.6 Net debt 1,937.9 2,283.0 2,270.6 2,163.1 1,769.5 Share data: Weighted average number of ordinary shares (thousands) 107,876 107,876 107,876 107,876 107,876 Earnings per share, basic, SEK 0.72 -0.09 -0.11 0.01 -0.11 Earnings per share, after dilution, SEK 0.72 -0.09 -0.11 0.01 -0.11 ===== SIDA 23 ===== 23 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 Jan-Dec MSEK 2025 2024 2024 Employee benefit expenses -2.6 -1.5 -9.2 Depreciations and amortisations - - -0.1 Other operating income and expenses 2.0 -14.5 -17.1 Operating profit (EBIT) -0.6 -16.0 -26.4 Financial income 31.4 36.5 145.8 Financial expenses -6.1 -29.1 -89.6 Net financial items 25.3 7.4 56.2 Group contributions - - 30.0 Profit before tax 24.7 -8.6 59.8 Tax on profit for the period -5.1 - 2.6 Profit for the period 19.6 -8.6 62.4 Total comprehensive income 19.6 -8.6 62.4 Q1 ===== SIDA 24 ===== 24 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 MSEK 31 Mar 2025 31 Mar 2024 31 Dec 2024 ASSETS: Receivables from group companies 2,442.6 2,588.3 2,940.8 Investments in group companies 1,171.7 1,163.0 1,169.2 Right-of-use assets 0.4 - 0.5 Deferred tax assets 2.5 - 2.5 Total non-current assets 3,617.2 3,751.3 4,113.0 Receivables from group companies 40.8 44.0 91.8 Prepaid expenses 2.4 1.1 1.0 Other receivables - 2.4 0.2 Current tax receivables - 2.9 2.3 Cash and cash equivalents 44.3 24.9 336.2 Total current assets 87.5 75.3 431.5 TOTAL ASSETS 3,704.7 3,826.6 4,544.5 ===== SIDA 25 ===== 25 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 MSEK 31 Mar 2025 31 Mar 2024 31 Dec 2024 EQUITY AND LIABILITIES: Restricted equity Share capital 1.7 1.7 1.7 Non-restricted equity Share premium 2,654.0 2,654.0 2,654.0 Retained earnings including net profit for the period 133.7 33.9 111.2 Total equity 2,789.4 2,689.6 2,766.9 Lease liabilities 0.3 - 0.3 Borrowing from group companies 26.8 56.1 26.5 Borrowing from credit institutions 773.6 936.0 1,304.9 Total non-current liabilities 800.7 992.1 1,331.7 Borrowing from credit institutions 108.5 86.4 114.9 Trade payables 0.6 12.2 2.3 Borrowing from group companies - 43.2 323.0 Current tax liabilities 2.1 - - Accrued expenses 2.6 2.9 4.2 Leasing liabilities, short term 0.2 - 0.2 Other current liabilities 0.6 0.2 1.3 Total current liabilities 114.6 144.9 445.9 TOTAL EQUITY AND LIABILITIES 3,704.7 3,826.6 4,544.5 ===== SIDA 26 ===== 26 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 This interim report contains references to a number of performance measures. Some of these measures are defined in IFRS standards, while others are alternative measures, which are not reported in accordance with applicable financial reporting frameworks or other legislation. These measures are used by Karnov to help both investors and management to analyse the Group’s operations. The measures used in this interim report are described below, together with definitions and the reason for their use. Key ratio Definition Reason for use Acquired growth Change in net sales during the current period attributable to acquired units, excluding currency effects, in relation to net sales for the corresponding period of the preceding year. Net sales of acquired units are defined as acquired growth during a period of 12 months commencing the respective acquisition date. The measure is used as a complement to organic growth and provides an improved understanding for Karnov’s growth. Adjusted EBITA EBITA adjusted for the impact of items affecting comparability. The measure shows the profitability from the business, adjusted for the impact of items affecting comparability and amortisation of capital expenditures related to acquisitions. Adjusted EBITA margin Adjusted EBITA as a percentage of net sales. The measure shows the underlying profitability generated from the current operations over time, adjusted for items affecting comparability. Adjusted EBITDA EBITDA adjusted for the impact of items affecting comparability. The measure is used since it facilitates the understanding of the operating profit, excluding items affecting comparability, financing, depreciation and amortisation. Adjusted EBITDA margin Adjusted EBITDA as a percentage of net sales. The measure shows operational profitability over time, excluding items affecting comparability, financing, depreciation and amortisation. Adjusted free cash flow Cash flow from operating activities less capital expenditure and leasing liabilities and adjusted for cash effect of items affecting comparability The measure is used since it shows how efficiently adjusted cash flow from operating activities is translated into a concrete contribution to Karnov’s financing. Annual run-rate synergies Realised synergies by the end of the period on an annualised basis. The definition is used as a complement to disclose future savings from different cost-saving initiatives. Average number of full-time employees (FTEs) Average number of full-time employees during the reporting period. Non-financial key ratio. Earnings per share Earnings per share for the period in SEK attributable to the parent company’s shareholders, in relation to weighted average number of outstanding shares before and after dilution. IFRS key ratio. EBITA Earnings before financial items and taxes, excluding acquisition related purchase price allocation (PPA) amortisation. The measure shows the profitability from the business, adjusted for acquisition related purchase price allocation (PPA) amortisation. EBITA margin EBITA as a percentage of net sales. The measure shows the profitability over time for the underlying business (i.e., excluding PPA amortisation) in relation to net sales. EBITDA Earnings before depreciation and amortisation, financial items, and taxes. The measure shows the operating profitability before depreciation and amortisation. EBITDA margin EBITDA as a percentage of net sales. The measure shows operational profitability over time, regardless of financing, depreciation and amortisation. Equity/asset ratio (%) Equity divided by total assets. The measure can be used to assess Karnov’s financial stability. ===== SIDA 27 ===== 27 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 Key ratio Definition Reason for use Items affecting comparability Items affecting comparability includes items of a significant character that distort comparisons over time. The measure is used for understanding the financial performance over time. Leverage ratio (Net debt/adjusted EBITDA LTM excluding leasing liabilities) Net debt on the balance sheet date divided by adjusted EBITDA for the last twelve months (LTM), excluding leasing liabilities. Adjusted EBITDA LTM is adjusted for items affecting comparability and including proforma consolidation of acquired EBITDA. Relevant to analyse to ensure that Karnov has an appropriate financing structure. Net debt Total net borrowings including capitalised bank costs less cash and cash equivalents. The measure is used since it allows for an assessment of whether Karnov has an appropriate financing structure. Net sales (online) Net sales from online products. The measure is used since it facilitates the understanding of total net sales and the breakdown of net sales. Net sales (offline) Net sales from printed products and training. The measure is used since it facilitates the understanding of total net sales and the breakdown of net sales. Net working capital Current assets less current liabilities The metric measures the liquidity and ability to meet short-term obligations. Operating profit (EBIT) Profit for the period before financial items and taxes. The measure is used since it enables comparisons of the profitability regardless of the capital structure or tax situation. Organic growth Change in net sales during the current period, excluding acquisitions and currency effects, in relation to net sales for the corresponding period of the preceding year. Acquisitions are included in organic net sales after a period of 12 months. The measure is used since it shows Karnov’s ability to generate growth through increases of, among other things, volume and price in its existing business. CURRENCY RATES OTHER Amounts in tables and combined amounts have been rounded off on an individual basis. Minor differences due to this rounding off may, therefore, appear in the totals. Figures commented in the text are presented in million SEK unless otherwise stated. Comparative figures from previous period are presented in brackets. The interim report is published in Swedish and English. In case of any differences between the English version and the Swedish original text, the Swedish version shall prevail. Closing rate Average rate Closing rate Average rate Closing rate Average rate 31 Mar 2025 Jan-Mar 2025 31 Mar 2024 Jan-Mar 2024 31 Dec 2024 Jan-Dec 2024 1 DKK is equivalent to SEK 1.4540 1.5056 1.5453 1.5128 1.5398 1.5325 1 NOK is equivalent to SEK 0.9506 0.9640 0.9851 0.9879 0.9697 0.9833 1 EUR is equivalent to SEK 10.8490 11.2318 11.5250 11.2796 11.4865 11.4307 ===== SIDA 28 ===== 28 KARNOV GROUP | INTERIM REPORT JANUARY – MARCH 2025 Karnov Group clears the path to justice, providing mission critical knowledge and workflow solutions to European professionals in the areas of legal, tax and accounting, and environmental, health and safety. Karnov was founded on one man’s belief that access to the law is the foundation of every great society and our legacy dates back to 1823. Over time, the Karnov Group has evolved from a traditional publishing company to a digital legal knowledge provider. Our mission is to be an indispensable partner for all legal, tax and accounting professionals and enable our users to make better decisions, faster by delivering the highest quality of content within a state-of-the-art user experience to support their workflow efficiency. Our solutions are largely digital, and we offer subscription- based online solutions for law firms, tax and accounting firms, corporates and the public sector including courts, universities, public authorities and municipalities. Karnov also publishes and sells books and journals and hosts legal training courses. With strong brands such as Karnov, Norstedts Juridik, Aranzadi LA LEY, Lamy Liaisons, Jusnet, Notisum, Echoline, QSE Conseil, DIBkunnskap, DIB Viden, BELLA Intelligence, Karnov Group delivers knowledge and insights to more than 400,000 users. Karnov’s is organised into two geographical financial reporting segments and the product offering, subject to a few variations, is similar in all countries. Denmark: Legal, tax and accounting online and offline products and solutions and EHS compliance solutions Sweden: Legal, tax and accounting online and offline products and solutions and EHS compliance solutions Norway: Tax and accounting online workflow tools France: Legal online and offline products and solutions, EHS compliance solutions and legal training Spain and Portugal: Legal online and offline products and solutions and legal training With offices in Sweden, Denmark, Norway, France, Spain and Portugal, Karnov Group employs around 1,200 people. The Karnov share is listed on Nasdaq Stockholm, Mid Cap segment, under the ticker “KAR”. 400,000+ USERS 7,000+ SPECIALISTS ~1,200 EMPLOYEES Karnov Group AB (publ) Corp. Id. 559016-9016 Registered office: Stockholms län Head office: Warfvinges väg 39, 112 51 Stockholm, Sweden Tel: +46 8 587 670 00 www.karnovgroup.com