Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q2 2024 Earnings Presentation
30 slides from Netcompany Group A/s's earnings presentation, Aug 14, 2024
Slide 1: Netcompany
Netcompany rey) J) O 94 © Copyright Netcompany
Slide 2: Important information
Important information This report contains forward-looking statements including, but not limited to, the statements and expectations contained in the outlook section. Forward-looking statements are statements (other than statements of historical fact) relating to future events and Netcompany’s antic
Slide 3: Presenters
Presenters André Rogaczewski NETCOMPANY CEO AND CO-FOUNDER ._Will go through the business highlights for Q2 2024 and our guidance for 2024. Thomas Johansen NETCOMPANY CFO ._-Will go through the financial performance for Q2 2024. Netcompany
Slide 4: Highlights
HIGHLIGHTS Q2 2024 Highlights 47.1%, 7 ; +18.1% 7,884 3,034; ee if 7,699 ° * 582 +38.0% 437.2 sch om So 2 269.1 195.1 Adjusted Average FTES Revenue EBITDA ge Tl Q2 20238 +8.9% HM Q2 2024 | + 43.3pp 1 Hl y1D 2023 . HA 918.2 " MM y1D 2024 842.9) i" a 16.3% ten 13.1% a 402; | sos Gross profit Adjusted
Slide 5: New contracts
HIGHLIGHTS Q2 2024 New contracts Skatteverket —_=——~_. ERHVERVSSTYRELSEN HM Revenue & Customs Energi-yn Netcompany Public segment, Sweden The Swedish Tax Agency, Skatteverket, has chosen Netcompany’s SOLON TAX for the modernisation of the central tax system, which manages all tax inflows and outflow
Slide 6: New contracts
HIGHLIGHTS Q2 2024 New contracts NATIONAL BANK OF GREECE ) vodafone Netcompany Public segment, EU Netcompany-intrasoft was awarded a two-year framework contract with the European Medicines Agency (EMA). The agreement is to provide external services for software development, implementation and mainte
Slide 7: Employee development
HIGHLIGHTS Q2 2024 Employee development FTEs increased to 7,884 Attrition rates 7,884 71699 7,846 i LTM June 2023 519 - 505 606 HLTM June 2024 484 489 1 3 months rolling June/July 2024 aT =270 40 B69 IB Non-client facing 4145 ll Freelancers UK contractors Vietnam . . 12.1% 15.2% 16.2% Poland Il Neth
Slide 8: Guidance
HIGHLIGHTS Q2 2024 Guidance Comments ™® Netcompany realised revenue growth of 10.2% and EBITDA margin of 16.4% (both in constant currencies) in Q2 2024 positively impacted by the timing of Easter. For the first six months revenue growth was 6.8% and EBITDA margin was 16.1% - an improvement of 1.7 pe
Slide 9: Financial highlights
Financial highlights
Slide 10: Financial: Revenue
FINANCIAL HIGHLIGHTS Q2 2024 Comments Revenue lM Revenue increased by 10.2% on Group level mainly driven by recovery in the Danish entity, and improved performance in Netcompany- Revenue in DKK million Intrasoft and the Netherlands. BB Q2 2023 lM Revenue in Denmark increased 14% caused by HM Q2 2024
Slide 11: Gross profit margin
FINANCIAL HIGHLIGHTS Q2 2024 Gross profit margin Gross profit margin (before depreciation and amortisation) HM Q2 2023 HM 2 2024* +4.7pp +29.9pp 38.7% + +2, 34.0% 34.4% 2-8PA + -9.0pp 29.6% 0.8pp | 27.3% 23.1% 99.3% 24.6% +3.5pp 15.6% 13.6% 10.1% 4.5% Denmark Intrasoft UK Norway Netherlands Group *
Slide 12: Adjusted EBITDA margin
FINANCIAL HIGHLIGHTS Q2 2024 Adjusted EBITDA margin Adjusted EBITDA margin (before allocated cost from HQ) BB Q2 2023 @ Q2 2024* +6. a +38.7pp iy 1% + i° val 20.2% 18.0% 10 -7.2pp, 14. by y 7% | 10.9% 3.8% +6.3pp 18.4% Denmark Intrasoft UK Norway Netherlands * Constant currencies (2028 rate) Netcomp
Slide 13: Work in progress overview
FINANCIAL HIGHLIGHTS Q2 2024 Work in progress overview Work in progress compared to revenue Mwe Ml Revenue LTM DKK million 6,400 6,200 6,000 i. i +6.6% Bp Netcompany Jun. 30 2023 Jun. 30 2024 Q2 2023 LTM Q2 2024 LTM Comments Work in progress decreased by 14.3% (on a net basis) to DKK 847.3m in Q2 20
Slide 14: Cash flow
FINANCIAL HIGHLIGHTS Q2 2024 Comments Cash flow Hin Q2 2024, free cash flow was DKK 148.2m. compared to negative DKK 72.5m in Q2 2023 driven by the improvement in EBITDA and working capital changes. DKK million Q2 2024 Q2 2023 % change The negative impact from networking capital was mainly driven by
Slide 15: Revenue visibility
FINANCIAL HIGHLIGHTS Q2 2024 Revenue visibility, DKK million Public segment 18.0% 25.4%| Private segment 1,788.0 4.5% Total Netcompany Group Revenue Contractual Contractual Non Total commited- committed - contractual Netcompany Netcompany committed Core Intrasoft Netcompany Revenue Contractual Contr
Slide 16: Q&A
Netcompany Q&A 16
Slide 17: Appendix
Appendix
Slide 18: Netcompany Core
APPENDIX Q2 2024 Netcompany Core * Constant currencies (2028 rate) ¢ Denmark Revenue increased by 14% to Revenue DKK 790.6m. - Adjusted EBITDA before Adj. EBITDA allocated costs from HQ was DKK 190.8m yielding a margin bef. HQ costs of 24.1%. We have seen a recovery of the Danish market during the q
Slide 19: Netcompany-Intrasoft
APPENDIX Q2 2024 Netcompany-intrasoft * Constant currencies (2028 rate) Key metrics, Q2 2024 © ge « Total revenue Total Adj. Adjusted DKK 580.2m EBITDA EBITDA margin DKK 79.3m 13.7% Netcompany fp 3,433 client facing FTEs Comments ll Revenue in Q2 was DKK 580.2m compared to DKK 523.3m in Q2 2023, yie
Slide 20: Midterm targets
APPENDIX Q2 2024 Midterm targets Adjusted EBITDA margin guidance midterm 2026 FY 2023 Flatlining of HQ and Go-To-Market costs Organic revenue growth towards 2026 Margin improvements in intrasoft Operating entity Annual Growth 2024-2026 + a . Denmark T-12% Non-recurring impacts related to right-sizin
Slide 21: Income statement
APPENDIX Q2 2024 Income statement DKK million Q22024 Q2 2023 % change Revenue 1,650.2 1,493.9 10.5% Costs of services 4,170.4 1091.41 7.2% Gross profit 480.1 402.8 19.2% Sales and marketing costs 412. 18.7 “11.5% Administrative costs -246.1 -244.4 0.7% Adjusted EBITA 221.9 144.8 53.3% Other operatin
Slide 22: Public segment comments
APPENDIX Q2 2024 Comments Public segment 02 Public revenue growth of 11.8% in Q2 2024 was driven by increase of revenue in Denmark, Intrasoft, Netherlands and Norway of 15.9 15.8%, 62.2% and 11.9%, respectively. DKK million Q2 2024 Q2 2023 % change Gross profit margin was 28.5%, which was an increas
Slide 23: Private segment comments
APPENDIX Q2 2024 Comments Private segment Private segment revenue increased 7.7%, which was driven by increased revenue in Denmark, UK and Norway. Private revenue in Denmark, UK and Norway DKK million Q2 2024 Q2 2023 % change increased by 11%, 22.6% and 4.3%, respectively. Income Statement Gross pro
Slide 24: Working days
APPENDIX Q2 2024 Working days Denmark Norway UK Netherlands Greece Belgium Luxembourg, Netcompany Qi 4 4 I I I [ ° [J 2023 Q3 Ls 4 iz 4 Lt 4 — 4 Q4 Qi 4 2024 Q2 Q3 +3 i | = +3 Lt — +2 | | = = 4 4 I fa 9 | 42 0 Zz +2 4 oo Q4 24
Slide 25: Statement of financial position
APPENDIX Q2 2024 Statement of financial position DKK million 30 June 30 June 2024 2023 ‘Assets Intangible assets 3,717.0 8,749.2 Tangible assets 8943 792.9 Investment in joint venture 844 929 Investments in associates 110.8 8.0 Other securities and investments 1" 4 Other receivables 56.9 55.2 Deferr
Slide 26: Free cash flow
APPENDIX Q2 2024 Free cash flow -304.6% 382.6 323.4 221.5 141.6 148.2 100.4 Oo . 72.5 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q12024 Q2 2024 Netcompany 26
Slide 27: Cash conversion rate
APPENDIX Q2 2024 Cash conversion rate +192.7- 431.1% 133.7% 112.5% L] 109.2% 93.0% 104.7% | _ -87.9% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q12024 Q2 2024 Netcompany 27
Slide 28: We are
APPENDIX Q2 2024 We are Netcompany What guides us is a core belief that technology makes a real and positive difference to societies, businesses, the environment, and our common future: - if used the right way. By leveraging technology and digitalisation responsibly, it is our mission to contribute
Slide 29: Netcompany's philosophy
APPENDIX Q2 2024 Netcompany’s philosophy Responsible digitalisation Our philosophy of responsible digitalisation is woven into the way we work. By working with platforms and products, focusing on reuse and agnostic technology, and investing in societies, we work towards a sustainable future with hig
Slide 30: Netcompany
Netcompany netcompany.com