Welcome to the Karnov Group Audio Cast with the Teleconference Q2 2021. Throughout the call, all participants will be in a listen-only mode, and afterwards there will be a question- and- answer session. You'll be able to ask questions over the phone or by sending an email. Today, I'm pleased to present CEO Pontus Bodelsson and CFO Dora Brink Clausen. Please go ahead with your meeting. Welcome everyone to this earnings conference for Karnov Group, where we are going to present the outcome of our second quarter of 2021. Next slide, please. I am Pontus Bodelsson, President and CEO of the company. With me, I have our CFO, Dora Brink Clausen, and our IR specialist, Erik Berggren. Dora and I will present the outcome of the second quarter using a few slides, and then we'll open up for questions. With that said, let's get started with the presentation of Q2. Let's turn the page and go to the next slide, please. We are satisfied with the outcome of the second quarter, having a solid organic growth based on strong online sales. The growth is driven by a combination of an increase in demand for our new and existing offerings from both new and existing customers. We can especially see a growth in the public sector, municipalities, and our EHS vertical. Net sales grew by 13%. Organic growth was 7%. EBITDA margin of 35% and leverage within our targets of not more than three times, also after the acquisition of DIB. Next slide, please. I'm honored and humbled to have been given the opportunity to become the CEO of Karnov Group, and I've now led the group for the past three months. Some of you might want to know more about me and my background, so I will use the next minute or two to introduce myself. I am 54 years of age and have been CEO for the past + 20 years. I have studied the law and also have an MBA. Prior to joining Karnov Group, I have been the CEO of Nationalencyklopedin, the Swedish National Encyclopedia, working with approximately 3,000 authors and experts, working with digitalization and reshaping the business model suiting for a digital landscape. I've also been the CEO of the media group HD-Sydsvenskan where I was involved in the merger between the two companies. I have a great interest in leadership and have given lectures on universities as well as written a few books on the topic. I've also an interest in e-health and have been a board member in a couple of e-health companies such as Min Doktor, where I was the Chairman for some years. I have now left the board in many of the companies to focus on Karnov Group, but still am the chairman in one e-health company focused on artificial intelligence, AI, as I believe that can be useful in the future journey of Karnov Group. Next slide, please. Having been the CEO for the past three months, I've been gaining insights from many sources, meeting customers, employees, authors, experts, shareholders, and analysts. Karnov Group plays an important part in a society based on justice and democracy. Our mission is crystal clear. With over 1,500 dedicated legal experts and authors, we provide highly important content and information used daily by judges, lawyers, and tax professionals. That is something to be proud of, but also to be humble about. We have long relationships with our customers. We honor the customer's loyalty by providing solutions for their challenges of today and their possibilities of tomorrow. It's crucial that we stay close to our customers. We must take every chance to increase the customer value by putting our unique content in the customer's context. The complexity of legal work is increasing, and the frequency of legislative change is rising. Our quality content is more needed than ever, and we have great goals to achieve. Karnov Group has a solid strategy, and our work is not about changing the strategy. It's about improving the execution. Karnov will continue to be a successful group if we live our current strategy and our important mission to contribute to the justice in our society. I see promising potentials to strengthening our offerings even more and to continue growing Karnov Group. Next slide, please. In Denmark, we've had another strong quarter with an organic growth of 5% and an adjusted EBITDA margin of 40% in Q2. The growth is driven by a combination of an increase in demand for our new and existing offerings from both new and existing customers. We have continued being active in the market. Our enhanced platform, which was launched in the end of February, is now the standard solution for a majority of our users. We are pleased with the user feedback we've had. We will continue adding more features to the platform. For the past year, we have launched new products such as our online library and our preparatory work tool. We also plan to launch new products. In the second half of this year, we will launch our offering for municipalities called the Karnov for Kommuner. Turning the page, please. The new segment, Sweden/Norway, continued to have satisfying performance. The organic growth of 9% was driven by online sales, both to new customers and upselling to existing customers. We see good development in our offering for the public sector, municipalities, and our EHS vertical, and we can see we are gaining market shares in these areas. DIBkunnskap has performed well in the second quarter, in line with our expectations, and the company is now preparing to launch their services in Sweden later this year. Turning the page, please. I will now hand over the microphone to Dora, who will present more of the financial results for the second quarter. Thank you, Pontus. As you said, a solid quarter for Karnov Group. Let's start with an overview, which is slide number nine. We had a strong second quarter with a top-line growth of 13% compared to the same quarter last year. Net sales was SEK 201 million. Adjusted EBITA increased by 11% to SEK 70 million, with an adjusted EBITA margin of 35%. Next slide, please. Looking more specifically at our sales growth, organic growth was 6.6%, but currency effects had a negative impact on approximately 2.3%. Acquired growth from DIBkunnskap contributed with 8.7%. The online business continues to grow, while offline sales declined in line with the general market trend. The main drivers in the online sales are the public sector, municipalities, and our EHS vertical. DIBkunnskap has performed according to expectations in the second quarter. Next slide, please. We are content with the margin for the second quarter. Adjusted EBITA increased by 11%, and the adjusted EBITA margin was 35%, which is a decline of 0.5 percentage point. The decline is due to the acquisition of DIBkunnskap, which has diluted the group margin with approximately one percentage point, as announced earlier. The increased net sales, predominantly from online sales, better product mix, and our strive for operational excellence has had a positive impact on our margin. Next slide, please. On slide 12, you see the net sales development with two different views, and you see the long-term trend in our sales continued also in second quarter of 2021. First to the left, you see that the online business increased its shares of our group's sales by two percentage points to 89%. As you can see, typically, offline sales are on a lower level in the second quarter. As the portion of the online sales was on such a high level, also this year, the share of subscriptions in our sales was 93% in Q2 2021, just like last year. Move on to the next slide. Thank you. Where we have one of our two segments. We are pleased to see that we continue to grow organically in Denmark. In Q2, organic growth was 5%. However, net sales was flat due to the FX having an equally negative impact. Organic growth was driven by strong online sales, where our new products have been appreciated by our customers, with us being able to increase upselling to existing customers, as well as attract new customers. In Denmark, adjusted EBITA declined by 1% and adjusted EBITA margin was flat at a high level of 40%. Next slide, please. To the Swedish and Norwegian segment. The performance on the Swedish and Norwegian market was satisfying. Net sales increased by 29%. Organic growth was 9%. Acquired growth accounted for 19%, while currency effect had a positive impact of 1%. The organic growth comes from good online sales to new customers, as well as upselling to existing customers. We are proud to say that we are gaining market shares in the public sector, municipalities, and in our EHS vertical. Adjusted EBITA in Sweden increased by 35% compared to last year, while the adjusted EBITA margin improved by 0.5 percentage point to 30.1%. This was due to the increased net sales, change in product mix, and operational excellence. Next slide, please. Here we have our cash flow slide. Adjusted operating cash flow was, as typical, a little lower in the second quarter as our invoicing season is normally Q4 and Q1. In the second quarter, we had another quarter with good cash flow. Timing of payment of other liabilities has reduced adjusted operating cash flow by SEK 11 million, causing the cash conversion rate declining to 46%. Looking at the adjusted operating cash flow LTM, it has increased. Our leverage was 3x at the end of the period, which is in line with our target of not more than three times. As to our balance sheet, we have had paid close to SEK 100 million in dividend in the second quarter and still have a solid cash in bank. I'm now handing over to Pontus again, who will present our last slides. Thank you, Dora. Please switch to the next slide. I just want to conclude this presentation by presenting a summary of the highlights during the second quarter. Our enhanced platform in Denmark is now the standard solution for a majority of our users. We are planning to launch new products in the second half of 2021. We are happy about the performance in Sweden, Norway, with strong online sales, both from our legal services and our closely related verticals. We will stay even closer to the customers and provide solutions for their challenges of today and their possibilities of tomorrow. Next slide, please. Well, by this, I'll end our presentation, and we are now ready to take questions. I'll hand over to the conference again to our hosts. Thank you. Ladies and gentlemen, if you do wish to ask a question, please press zero followed by the one on your telephone keypad. If you wish to withdraw your question, you may do so by pressing zero followed by the two. Once again, for audio question, it is zero followed by the one. Our first question comes from Predrag Savinovic from Carnegie. Please go ahead. Your line is open. Thank you very much, operator. Morning, Dora. Morning, Pontus. Morning. Firstly to Pontus. You recently started. Can you talk a little bit about your order of priorities for Karnov now in the coming years and what you hope to bring to the organization? Thank you for the question. Well, I'd like to underline that I see that we have a solid strategy. I'm planning to steer the organization in the same direction. Just to underline what that is, we will make sure that we're trying hard to expand our core and also, of course, being interested in adjacent verticals. On the top of that, we are continuously looking at new geographies. I'm impressed by our dedicated employees and not to forget the deep knowledge coming from our authors and experts. It's important that we stay focused on having a really high quality of the content. That's the baseline. Thank you very much. Secondly, on the growth in the quarter. You have 7% organic here compared to roughly five in Q1. This is another acceleration. You talk about the public sector, municipalities, among other things, driving this growth, which is quite interesting. Karnov has talked about this before, but we see this really contributing to figures now. Wondering with these, call them verticals, what do you expect of them in the future? Have we seen this contribution now and now only, or should we see more of these elements driving growth going forward as well? Well, for the second quarter, we can see that we have gained market shares in those sectors, and it's thanks obviously to our being active on the markets and successful in public biddings, I would say. Hopefully, we will stay successful, but I shouldn't predict the future. All right. Finally, we're almost through August now. You probably have a good idea what Q3 is looking like. Can you just broadly talk about the market trends you're seeing right now, whether this Q2 performance is also representative for Q3 as well? I can talk a bit about what we currently are doing in Denmark because that's very promising. We have, as you know, launched our new enhanced platform in Denmark. We did that in the end of February. From the end of June, this is the default solution. We are happy to see that our customers do appreciate what we have done there with the enhanced platform. On the top of that, we are waiting to see the launch of our municipality service in Denmark. That's two really interesting things happening on the market right now in Denmark. When it comes to Sweden, Norway markets, we are looking forward to see DIBkunnskap launching their services in Sweden later this year. We can also see that Karnov Group Norway are close to launching their services in Norway, and that's legal information services. Okay, fantastic. Thank you very much. Thanks. Thank you. As another reminder to register for a question, please press zero followed by the one. Our next question comes from Daniel Ovin from Nordea. Please go ahead. Your line is open. Thank you. Good morning, Pontus and Dora, and thank you for taking my questions. Welcome. I have first a question on Sweden. Looking at the really strong organic growth are up 9%. Perhaps can you elaborate a little bit more what is driving the growth here? I also wonder if there is a positive effect from COVID due to easy comparable last year when offline sales were very weak. If there is any support from that factor, perhaps you can just highlight in what size that is roughly if that's possible. That's the first question. Thank you. Yeah. Thank you, Daniel. Well, let me just point out, we've been talking about the public sector and municipalities so far during your questions, but we mustn't forget the environment, health, and safety, the EHS vertical, which have done really good during this quarter number two. It's two things I would say. It's JUNO for municipalities, and that's regarding public sector and municipalities, obviously, and also not to be forgotten, the EHS vertical. That's two parts I would say. Yes, Daniel, you asked about if it's comparable with the second quarter last year. As you know, we are not disclosing numbers for online/offline on the two segments. Overall, you can say that 93% of our business is subscription this quarter. There is very low seasonality effect in the second quarter. Great. Perfect. Thank you very much. Another question on Sweden also when it comes to the adjusted EBITDA margin. It's up 3.6% despite having a two percentage points negative impact from incorporating DIBkunnskap. That is a quite much higher margin expansion than what we have seen the last few quarters. Can you maybe elaborate on what is so much stronger this quarter than the previous quarters, if that's possible? Thank you. Thank you for the question, Daniel. I believe that our Q1 in Sweden, Norway segment actually had an even higher adjusted EBITDA margin. The fact is that when we are having a really strong organic growth and acquired growth, when we are good in our product mix, when we have a good cost control and driving operational excellence, we see also strong adjusted EBITDA, both in actual numbers and also in adjusted EBITDA margin. I think that the focus we have always to optimize our businesses, you can see that also in the numbers also this quarter. Mm. Perfect. The last question here on Denmark, where you now have the new platform, I guess it's the JUNO also now in Denmark. That is the standard default platform here for your customers. How is the new platform compared to the old one? Is there also more services? Are there more additional services that you can pay for? In that case, is monetization per customer in Denmark now higher than it was for the older platform? If it's possible to say anything around that would be interesting. Thank you. I can say that the new platform, Karnov Online, is an enhanced platform from the old one, and it's also giving us opportunities to launch new products in connection with that platform, so to say. It's a huge step for us, and we are really glad to see that our customers are appreciating it, and we can see that our customer reacts positively. We could see at the Net Promoter Scores, the NPS scores are at least as high as they were earlier. That's a good start for a new platform. We are really happy with that. Great. Perfect. Thank you very much. That's all my questions. Thank you. Thank you. Thank you. There appear to be no further audio questions. I'll return the conference back to you, speakers. Thank you everyone for listening and for your questions. We will report our Q3 reports on the 4th of November, and we hope to hear from you then, if not earlier. Thank you.