Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q3 2024 Earnings Presentation
28 slides from Netcompany Group A/s's earnings presentation, Oct 31, 2024
Slide 1: Netcompany
Netcompany ) 3 J) @) J) A © 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 Q3 2024 and our guidance for 2024. Thomas Johansen NETCOMPANY CFO ..Will go through the financial performance for Q3 2024. Netcompany
Slide 4: Highlights
HIGHLIGHTS Q3 2024 Highlights Netcompany +8.2% oy | 4,862.3 +25.2% 8,088 4,495.8, 1 7,760, 822.5 i “ 657.1 7 a te 9 Adjusted Average FTEs fev na EBITDA " I 93 2028 413.8% HM gs 2024 | + 43.9) HM y1D 2023 1410.7 ePt +2.3pp MM yt 2024 psi 19.0% ons it 15.0% 4.0% ob, 5 , Gross profit _ Adjusted _ EBITD
Slide 5: New contracts
HIGHLIGHTS Q3 2024 New contracts Norwegian Ministry of Foreign Affairs w KOMB:T MINISTRY OF FOREIGN AFFAIRS OF DENMARK x€ LEONARDO Netcompany Public segment, Norway The Norwegian Ministry of Foreign Affairs has selected Netcompany to deliver a new case management system for the new established Direc
Slide 6: New contracts
HIGHLIGHTS Q3 2024 New contracts a -R: EVIPO EUROPEAN UNION % 4% INTELLECTUAL PROPERTY OFFICE TECHNICAL CHAMBER OF GREECE Is ©] INFORMATION oebth SOCIETY HEDNO OTRO Netcompany Public segment, EU Netcompany-intrasoft was awarded a five-year framework contract with the European Union Intellectual Prop
Slide 7: Employee development
HIGHLIGHTS Q3 2024 Employee development FTEs increased to 8,088 8,088 509 22. 451 =281 171 7,657 489 40 =267 148 Q3 2024 Q3 2023 YTD 2024 Netcompany YTD 2023 Bl Non-client facing ll Freelancers UK contractors Vietnam Poland Il Netherlands HB Norway Hl united Kingdom Hl intrasoft ll Denmark Attrition
Slide 8: Guidance
HIGHLIGHTS Q3 2024 Guidance Financial metrics in constant currencies Group revenue growth, organic Group adjusted EBITDA margin Midterm targets 2026 Revenue Adjusted EBITDA margin Cash redistribution to shareholders Netcompany Original target 2024 T-10% 15-18% >8.5bn >20% >2bn Actual performance 202
Slide 9: Financial highlights
Financial highlights
Slide 10: Revenue
FINANCIAL HIGHLIGHTS Q3 2024 Revenue Revenue in DKK million 410.4% 1,613.0 1,461.7 Hl 93 2023 Ml Q3 2024* +12.1% 759.1 +10.2% 677.2 518.1 B20 ry +28.0% 160.9 149.3 a ol Denmark Intrasoft UK Norway Netherlands * Constant currencies (2028 rate) Netcompany Group Comments lM Revenue increased by 10.4% o
Slide 11: Gross profit margin
FINANCIAL HIGHLIGHTS Q3 2024 Gross profit margin Gross profit margin (before depreciation and amortisation) I 3 2028 Hl 3 2024* +1.8pP 42.1% +10.6pp 40.2% + 36.1% +22.0pp +3.7pp -1.2pp | 04.5% 25.5% 20.6% 21.9% 90.796 17.0% 2.6% Denmark Intrasoft UK Norway Netherlands * Constant currencies (2028 rat
Slide 12: Adjusted EBITDA margin
FINANCIAL HIGHLIGHTS Q3 2024 Adjusted EBITDA margin Adjusted EBITDA margin (before allocated cost from HQ) I 93 2023 Hl gs 2024* +2.3pp ‘ +15.7} 28.8% a 26.5% 23.6% +3.3pp -0.6pp +28.1pp_ 11.6% 10.8% 11.5% .8% 10.2% 8.4% 7.9% -16.6% Denmark Intrasoft UK Norway Netherlands * Constant currencies (2028
Slide 13: Work in progress overview
FINANCIAL HIGHLIGHTS Q3 2024 Work in progress overview Work in progress compared to revenue Mwe Ml Revenue LTM DKK million 6,500 500 i. | 47.1% Bp Netcompany Sept. 30 2023 Sept. 30 2024 Q3 2023 LTM Q3 2024 LTM Comments Work in progress increased by 0.5% from DKK 1,021.1m in Q3 2023 to DKK 1,025.9m i
Slide 14: Cash flow
FINANCIAL HIGHLIGHTS Q3 2024 Cash flow DKK million Q3 2024 Q3 2023 % change Operating profit (EBIT) 228.9 138.5 65.2% Depreciation and amortisation 77.0 81.4 5.4% Non-cash 13.5 13.2 2.4% Working capital changes “111.3 68.2 91.1% Cash flow from operating activities 179.6 136.6 31.5% Cash flow from in
Slide 15: Revenue visibility
FINANCIAL HIGHLIGHTS Q3 2024 Revenue visibility, DKK million Public segment Private segment Total Netcompany Group Revenue Contractual Contractual Non Total Revenue Contractual Contractual Non Total Revenue Contractual Contractual Non Total commited- committed - contractual committed - committed - c
Slide 16: Appendix
Appendix
Slide 17: Netcompany Core
APPENDIX Q3 2024 Netcompany Core * Constant currencies (2028 rate) ¢ Denmark Revenue increased by 12.1% Revenue to DKK 759.1m. - Adjusted EBITDA before Adj. EBITDA allocated cost from HQ was DKK 218.8m yielding a margin bef. HQ costs of 28.8%. Pipeline is centralised around our Go-To-Market strategy
Slide 18: Netcompany-intrasoft
APPENDIX Q3 2024 Netcompany-intrasoft * Constant currencies (2028 rate) Key metrics, Q3 2024 © ge « Total revenue Total Adj. Adjusted DKK 571m EBITDA EBITDA margin DKK 66.5m 1.6% Netcompany fp 3,612 client facing FTEs Comments ll Revenue in Q3 was DKK 571m compared to DKK 518.1m in Q3 2023, yielding
Slide 19: Income statement
APPENDIX Q3 2024 Income statement DKK million Q3 2024 Q3 2023 % change Revenue 1,613.9 1,461.7 10.4% Costs of services 1,104.5 -1059.3 4.3% Gross profit 509.5 402.4 26.6% Sales and marketing costs -12.9 -13.0 -0.7% Administrative costs -287.4 -216.1 10.4% Adjusted EBITA 259.2 174.3 48.6% Other opera
Slide 20: Comments: Public segment
APPENDIX Q3 2024 Comments Public segment O83 Public revenue growth of 11.8% in Q3 2024 was driven by increase of revenue in Denmark, Netcompany-intrasoft, Netherlands and Norway. Public revenue in Denmark, Netherlands and DKK million Q3 2024 Q3 2023 % change Norway increased by 13.1%, 14%, 30. In .e
Slide 21: Comments: Private segment
APPENDIX Q3 2024 Comments Private segment ™@ Private segment revenue increased 7.4%, which was driven by increased revenue in Denmark, UK and Norway. Private revenue in Denmark, UK and Norway DKK million Q3 2024 Q3 2023 change increased 10.4%, 16.3% and 5.2%, respectively. Income Statement Gross pro
Slide 22: Working days
APPENDIX Q3 2024 Working days Denmark Norway UK Netherlands Greece Belgium Luxembourg Netcompany Qi 4 4 I I I [ ° [J 2023 Q4 Qi 4 2024 Q2 Q3 +3 i | = +3 Lt — +2 | | = = 4 4 I fa 9 | +2 ° Zz +2 4 oo Q4 22
Slide 23: Statement of financial position
APPENDIX Q3 2024 Statement of financial position DKK million 30 September 30 September DKK million 30 September 30 September 2024 2023 2024 2023 sets Equity and liabilities Share capital 50.0 50.0 Intangible assets 3,710.9 3,739.7 Treasury shares -650.0 198.6 Tangible assets 8814 912.6 Retained earn
Slide 24: Free cash flow
APPENDIX Q3 2024 Free cash flow +44,8% 382.6 323.4 1416 148.2 145.3 7 L L o > 72.5 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 12024 Q2 2024 Q3 2024 Netcompany 24
Slide 25: Cash conversion rate
APPENDIX Q3 2024 Cash conversion rate -3.5pp 431.1% 183.7% [| 109.2% 93.0% 104.7% 89.5% || “ -87.9% Q4 2022 12028 Q2 2028 Q3 2023 Q4 2023 Q12024 Q2 2024 Q3 2024 Netcompany 25
Slide 26: We are Netcompany
APPENDIX Q3 2024 We are Netcompany What guides us is a core belief that technology makes a eal 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 t
Slide 27: Netcompany's philosophy
APPENDIX Q3 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 28: Netcompany
Netcompany netcompany.com