Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Shareholder Meeting (2021)
54 slides from Netcompany Group A/s's shareholder meeting presentation, 2021
Slide 1: AGM 2021
AGM 2021 NETCOMPANY AGM 2021
Slide 2: Welcome
Welcome . 2020 has been an exciting year and the second full year as a listed company. At 31 December 2020, Share price increased Netcompany had more by 96.4% during 2020 than 8,750 registered shareholders Welcome to Netcompany’s Annual Approximately 63% of the General Meeting Netcompany entered reg
Slide 3: Voting during the Annual General Meeting
Voting during the Annual General Meeting . Proposals will be up for voting during the meeting. 2: Presentation and approval of the Company’s audited Annual Report 2020 Shareholders will get 60 seconds to vote for each proposals. The available choices will appear automatically on your device. Shareho
Slide 4: Mobile voting
Mobile voting . Instructions 1. Open browser, visit https://get.lumiagm.com and select your preference. 2. Enter the 9-digit meeting ID. 3. Enter your username and password. 4. When voting starts, the available choices will appear automatically. 2: Presentation and approval of the Company’s audited
Slide 5: Agenda of today
Agenda of today . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2020. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisor
Slide 6: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2020. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 7: Extraordinary results in extraordinary times
EXTRAORDINARY RESULTS IN EXTRAORDINARY TIMES – DRIVEN BY SUPERIOR DELIVERY AND TOPWORLD- CLASS EMPLOYEES OUR STRONG CULTURE AND TEAM SPIRIT UNITE US AND IS KEY TO OUR ONGOING SUCCESS
Slide 8: Netcompany's influence on society
Netcompany’s influence on society . 8
Slide 9: Turning challenges into opportunities in a global health crisis
TURNING CHALLENGES INTO OPPORTUNITIES IN A GLOBAL HEALTH CRISIS 9
Slide 10: Locations and employees
LOCATIONS AND EMPLOYEES Netcompany is the fastest growing and most successful IT services company in the Nordics, aiming to become a Northern European market leader. We are committed to lead the way showing how digital transformation can create strong, sustainable societies, OSLO successful companie
Slide 11: Highlights 2020
Highlights 2020 Highlights 2020 . DKK million Revenue Gross profit Adjusted Adjusted Average FTEs EBITA EBITA margin 2020 2,838.6 1,155.2 774.4 26.2% 2,768 Change to +15.7% +16% +20.6% +1.1pp +20.7% 2019 11
Slide 12: Cases: New contracts - public
Highlights 2020 Cases: New contracts - public . Ministerie van Financiën A new platform to A national COVIDmeter and A new platform Participation in a support the treasury system SmitteStop are for the Norwegian frame contract – Danish Police for that enables the two platforms Medicines Agency consi
Slide 13: Cases: New contracts - private
Highlights 2020 Cases: New contracts - private . Central administration Lifting e-commerce A new global platform Establishment of and customer handling capabilities and results for handling the quoting Smarter Airports A/S, a system for Health to a new level and sales processes JV with Copenhagen in
Slide 14: The Netcompany Govtech Framework
The Netcompany Govtech Framework . Over the last 20 years, we have built a strong reputation for successfully delivering complex digital projects to governments across Northern Europe. Today we have more than 3000 employees, and in the past 7 years alone, we have delivered 250+ world-leading public
Slide 15: Introducing the Platform approach
Introducing the Platform approach . Discovery • Gather existing knowledge regarding IT and business Approach • Identify business drivers and value • Always work with a MVP realization Technical Platform Platforms mindset to ensure rapid and continuous value realization • Establish a solid roadmap –
Slide 16: Smarter Airports - a partnership based on more than a decade of experience
Smarter Airports - a partnership based on more than a decade of experience . Emerging technologies - Baggage arrival AI - Risk assessment AI - SMARTER Internet of things (IOT) - AIRPORTS FACTS ABOUT OUR JOINT VENTURE Customer relation management - • Up to DKK 200 million will be Loyalty program - in
Slide 17: Employee development
Highlights 2020 Employee development . #FTEs increased to 2,768 Change 2,768 Average employee 181 84 Non-client facing +28 Age mid 30s. 45 2,293 113 UK contractors -108 153 274 Freelancers +12 192 109 92 33 Vietnam +21 FTEs grew by 475 from 2019 131 311 54 United Kingdom +143 to 2020. 252 225 Nether
Slide 18: Status on acquisitions
Highlights 2020 Status on acquisitions . Norway UK Netherlands Revenue increased by 164.6% to Revenue increased by 9.6% to 217.5m* Revenue decreased by 13.6% to 345m* 98.8m* Adj. EBITA bef. HQ cost was 8.6% Adj. EBITA bef. HQ cost was 4.5% Adj. EBITA bef. HQ cost was 19% amounting DKK 18.7m* amounti
Slide 19: Netcompany as a Northern European market leader
Netcompany as a Northern European market leader – additional tools for execution introduced . Mission & ambition Northern European market leader in IT services Gain market share Export business model Utilise platforms • Focus on complex projects requiring • Continue implementation of business • Expl
Slide 20: Income statement
Actual financials 2020 Income statement . DKK million 2020 2019 % change Comments Income statement Revenue increased by 15.7% to DKK 2,838.6m in Revenue 2,838.6 2,453.9 15.7% reported currencies. In constant currencies revenue growth was 16.6%. Cost of services -1,683.4 -1,458.1 15.4% Gross profit 1
Slide 21: Revenue type 2020
Actual financials 2020 Revenue type 2020 . Revenue split Comments Public Relatively increase in revenue from public Private 59% segment compared to 2019. Increase in 63% relatively split caused by decrease in UK 2020 2019 and the Netherlands. In Denmark private 37% 41% segment grew – especially towa
Slide 22: Revenue
Actual financials 2020 Revenue . Revenue in DKK million Comments 2019 +16.6% In Denmark, revenue grew by 21% as a result of high 2020* activity in both the public and private sector. 2.861,1 +21.0% High activity in the Dutch business operation following 2.453,9 increased delivery on ongoing projects
Slide 23: Gross profit margin
Actual financials 2020 Gross profit margin . Gross profit margin Comments 2019 2020* Gross margin unchanged at 40.6% – NL having a positive +0.6pp impact on margin. 0.0pp 45,4% 46,0% +16.0pp Gross profit margin increased by 0.6 percentage point to 40,6% 40,6% 46% against 45.4% in 2019 -10.7pp 37,6%
Slide 24: Adjusted EBITA
Actual financials 2020 Adjusted EBITA . Adjusted EBITA margin (before allocated cost from HQ) Comments 2019 2020* Adjusted EBITA margin at Group level increased by 0.9 +2.1pp percentage point to 27.5% driven by a margin increase in both the Danish and Dutch business operations. +0.9pp 33,4% 31,3% St
Slide 25: Cashflow
Actual financials 2020 Cashflow . 2020 2019 Comments DKK million Operating profit (EBIT) 644.9 511.3 Compared to 2019, cash position has increased by DKK 226.6 million to DKK 359 million. Depreciation and amortisation 164.4 157.9 Non-cash 17.6 19.2 Revenue recognised during 2020 that was included in
Slide 26: Revenue visibility, DKK million
Outlook for 2021 Revenue visibility, DKK million . Public segment Private segment Netcompany Group total 2,131.7 302,6 14.2% 1.305,3 146,9 11,3% 826.4 155,7 18.8% 1.829,1 85.8% 1.158,4 88,7% 670,7 81.2% Contractual Non Total Contractual Non Total Contractual Non Total committed contractual committed
Slide 27: Guidance for 2021
Outlook for 2021 Guidance for 2021 . Updated Targets Actual Financial metrics in constant currencies Targets 2021 2020 performance 2020 Organic revenue growth ~ 15-20% low end of 16-18% 15.5% Adjusted EBITA margin from organic ~23-25% ~25% 26.3% business Non-organic revenue growth 0 ~1% 1.1% Reporte
Slide 28: Corporate Governance
Corporate Governance . Transparency and constructive stakeholder dialogue is key to Netcompany. Corporate governance is important as it sets out the guidelines for the management. Netcompany observes the Recommendations on Corporate Governance and fully complies with all recommendations. The Board w
Slide 29: Annual Board evaluation
Annual Board evaluation . Annual evaluation of Board The Board evaluation included The conclusion of the evaluation performance conducted in 2020. among others: showed that overall it is an The evaluation was conducted as • Effectiveness effective Board with the right an internal evaluation as two c
Slide 30: Diversity to further increase
Diversity to further increase . Diversity is an important factor and Netcompany recognises the value of diversity. In our management levels, the number of females are 11%, which is 1pp lower than 2019. The target of at least 2 woman in the Board was set in 2019 and achieved in 2020. Focus is on incr
Slide 31: ESG Key points
ESG Key points . Environment Social Governance We use technology to build and We build digital solutions to strengthen Trust is a crucial factor in all business support green sustainable solutions societies and businesses dealings We ensure a safe and healthy working We act in transparency and a mor
Slide 32: Environmental, Social and Governance
ESG highlights 2020 Environmental, Social and Governance . Target Actual Target ESG key figures overview Unit 2019 2018 2017 2021 2020 2020 CO2e. scope 1 (direct GHG emissions) Tons per FTE <0.08 0.06 <0.08 0.08 0.07 0.06 CO2e. scope 2 (indirect GHG emissions) Tons per FTE <0.21 0.12 <0.21 0.21 0.25
Slide 33: Office locations
OSLO AALBORG AARHUS COPENHAGEN LEEDS HO CHI MINH DELFT WARSAW DERBY LONDON 33
Slide 34: The Board of Directors' proposals
The Board of Directors´ proposals . The board of directors proposes that: The Annual General Meeting takes note of the Board of Director’s report on the Company’s activities in 2020. The Company’s Annual Report 2020 be approved. The net profit for the financial year ended 31 December 2020 be distrib
Slide 35: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2020. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 36: Remuneration Report
Remuneration Report . Audited Remuneration Report In line with Danish and international corporate governance guidelines. Remuneration packages were put in place in connection with the IPO. Key points of policy: • Fixed remuneration • Market-based salary level • Clear link to creation and maximizatio
Slide 37: Remuneration elements
Remuneration elements . Remuneration BOD EM Comments Fixed fee / Fixed base salary Fee for Audit Committee, Remuneration Committee and Fee for committee work Nomination Committee work Up to 60% of fixed base salary against defined objectives and Short term based incentive targets Long term s
Slide 38: Remuneration of Executive Management
Remuneration of Executive Management 2020 . André Rogaczewski, Claus Jørgensen, Thomas Johansen, Total Executive CEO COO CFO Management +2.0% 26,241 26,773 9.200 9.200 21 21 5.520 5.764 Fixed base salary DKK 4,613k DKK 4,613k DKK 2,563k Short Term Incentive Plan (STIP) DKK 2,256k DKK 2,256k DKK 1,25
Slide 39: The Board of Directors' proposal
The Board of Directors’ proposal . The Board of Directors proposes the Remuneration Report 2020 be approved in the advisory voting by the General Meeting. 39
Slide 40: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2020. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 41: Remuneration of members of the Board of Directors
Remuneration of members of the Board of Directors . Unchanged since the IPO on 7 June 2018 Members of the Board of Direc- The Chairman of the Board of The Deputy Chairman of the tors shall receive a base fee of: Directors shall receive: Board of Directors shall receive: • DKK 350,000 • DKK 1,050,000
Slide 42: Committee work
Committee work . Unchanged since the IPO on 7 June 2018 Members of the Audit Chairman of the Audit Members, including the Members, including the Committee shall receive an Committee shall receive an chairman of the chairman of the annual committee annual committee Remuneration Committee Nomination C
Slide 43: The Board of Directors' proposal
The Board of Directors’ proposal . The Board of Directors proposes the described remuneration level to the Board of Directors for 2021 to be approved by the General Meeting. 43
Slide 44: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2020. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 45: Proposal to re-elect following members to the Board of Directors
Proposal to re-elect following members to the Board of Directors . Bo Rygaard Juha Christensen Hege Skryseth Åsa Riisberg Scanes Bentley 45
Slide 46: The Board of Directors' proposal
The Board of Directors’ proposal . The Board of Directors proposes re-election of Bo Rygaard, Juha Christensen, Scanes Bentley, Hege Skryseth and Åsa Riisberg as Board members. 46
Slide 47: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2020. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 48: Proposal to elect EY as Company Auditor
Proposal to elect EY as Company Auditor . The Board of Directors proposes election of: EY Godkendt Revisionspartnerselskab, CVR no. 30 70 02 28 48
Slide 49: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2020. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 50: Authorisation to acquire treasury shares
Any proposal submitted by the Board of Directors regarding authorisation to acquire treasury shares . No proposal has been submitted by the Board of Directors regarding treasury shares as the Board in connection with the IPO was authorized in the period until 21 May 2023 to approve the Company’s acq
Slide 51: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2020. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 52: Any proposals submitted by the Board of Directors or by shareholders
Any proposals submitted by the Board of Directors or by shareholders . No proposal has been submitted by the Board of Directors or by shareholders. 52
Slide 53: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2020. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 54: We are committed
WE ARE COMMITTED . www.netcompany.com