Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q1 2025 Earnings Presentation
33 slides from Netcompany Group A/s's earnings presentation, May 1, 2025
Slide 1: Netcompany
Netcompany ‘O1 y) @) J) 5 © Copyright Netcompany
Slide 2: Important information
Important information This presentation contains forward-looking predicted in the forward-looking statements and from competing products, reliance on information statements including, but not limited to, the the past performance of Netcompany. technology, Netcompany’s ability to successfully stateme
Slide 3: Presenters
Presenters André Rogaczewski Thomas Johansen NETCOMPANY CEO AND CO-FOUNDER NETCOMPANY CFO …will go through the business highlights …will go through the for Q1 2025 and our financial performance guidance for 2025. for Q1 2025. 3
Slide 4: Highlights Q1 2025
HIGHLIGHTS Q1 2025 Highlights Q1 2025 Agenda +9.1% +24.4% +4.4% 1,744.3 307.3 7,808 8,150 1,598.1 247.1 Adjusted Average Revenue EBITDA FTEs +16.1% 515.1 +2.2pp 443.7 17.6% Adjusted 15.5% Q1 2024 EBITDA Q1 2025 Gross profit margin Reported currencies 4
Slide 5: The SDC transaction
HIGHLIGHTS Q1 2025 The SDC transaction 10 February 2025 31 March 2025 Mid-2025 Netcompany enters into Regulatory Formal approval of Expected closing an agreement with SDC approvals granted the merger by of the transaction to create 'the future of each party banking services' Integration of SDC begin
Slide 6: New contracts Netcompany Core
HIGHLIGHTS Q1 2025 New contracts Netcompany Core Public sector, Denmark Netcompany has been chosen as the vendor Agenda for the strategic modernisation, further Public sector, Denmark development and 24/7 support of one of the Public sector, Denmark most society critical IT solutions at the Danish N
Slide 7: New contracts Netcompany SEE & EUI
HIGHLIGHTS Q1 2025 Public sector, EU New contracts Netcompany SEE & EUI Netcompany SEE & EUI was awarded a multiyear framework agreement with the European Border and Coast Guard Agency, FRONTEX. The scope of the contract is to provide a wide range of development and Agenda Private sector, Greece con
Slide 8: Workforce Q1 2025
HIGHLIGHTS Q1 2025 Comments Workforce Q1 2025 The number of client facing equivalents for the Group increased by 300 from 7,318 in Q1 2024 to 7,618 in Q1 2025. FTEs increased to 8,150 The attrition rate for the last twelve months was 18%, which was an increase 8,150 7,808 of 1.7 percentage points co
Slide 9: Guidance 2025
HIGHLIGHTS Q1 2025 Comments Guidance 2025 Financial guidance as given in the annual report and confirmed in the company announcement of 10 February 2025 is based on organic measures and consequently stand unaffected by the SDC transaction. Agenda Based on revenue growth of 9% (constant) 7.4% 5%-10%
Slide 10: Netcompany
HIGHLIGHTS Q1 2025 10 Netcompany
Slide 11: Financial highlights
Financial highlights 11
Slide 12: Revenue Q1 2025
FINANCIAL HIGHLIGHTS Q1 2025 Comments Revenue Q1 2025 Revenue increased by 9.0% on Group level driven by increased activity in all business segments besides UK compared to the same Revenue in DKK million quarter last year. Q1 2024 Revenue growth in the Danish business segment Q1 2025* was 3.5%, driv
Slide 13: Gross profit margin Q1 2025
FINANCIAL HIGHLIGHTS Q1 2025 Comments Gross profit margin Q1 2025 Gross profit margin improved by 1.9 percentage points to 29.6%, compared to Q1 2024. The margin was positively impacted by higher Gross profit margin (before depreciation and amortisation) licence revenue in Q1 2025. Q1 2024 Gross pro
Slide 14: Adjusted EBITDA margin Q1 2025
FINANCIAL HIGHLIGHTS Q1 2025 Comments Adjusted EBITDA margin Q1 2025 Adjusted EBITDA margin at Group level increased 2.2 percentage points to 18.6% in Q1 2025 compared to 16.4% in Q1 2024. Adjusted EBITDA margin (before allocated cost from HQ) In Denmark margin was 22.3% in Q1 2025 Q1 2024 compared
Slide 15: Work in progress overview
FINANCIAL HIGHLIGHTS Q1 2025 Comments Work in progress overview As a total, trade receivables and work in progress decreased by 8.8% from DKK 2,063.9m end of Q1 2024 to DKK 1,881.4m end of Work in progress compared to revenue Q1 2025. The development was caused by the significant increase in prebill
Slide 16: Cash flow Q1 2025
FINANCIAL HIGHLIGHTS Q1 2025 Comments Cash flow Q1 2025 In Q1 2025, free cash flow was DKK 67.9m compared to negative DKK 4.9m in Q1 2024, DKK million Q1 2025 Q1 2024 % change which was an increase of 72.8m. Adjusted for taxes paid on account, the Group Operating profit (EBIT) 209.6 170.3 23.1% gene
Slide 17: Revenue visibility
FINANCIAL HIGHLIGHTS Q1 2025 Comments Revenue visibility Revenue visibility end of Q1 2025 was DKK 5,628.9m, which was an increase of 3.8% compared to DKK 5,420.7m in Q1 2024. Total revenue visibility for Netcompany Group Generally, revenue visibility was higher than DKK million normal at the end of
Slide 18: Appendix
Appendix 18
Slide 19: Netcompany Core
APPENDIX Q1 2025 Netcompany Core * Constant currencies (2024 rate) Denmark UK Norway Netherlands Revenue increased by 3.5% to Revenue decreased by 0.5% to Revenue increased by 19.7% to DKK Revenue increased by 3.7% to DKK Revenue DKK 796m. DKK 162.4m. 103.8m. 50.3m. Adjusted EBITDA before Adjusted E
Slide 20: Netcompany SEE & EUI
APPENDIX Q1 2025 Comments Netcompany SEE & EUI Revenue in Q1 was DKK 629.4m compared to * Constant currencies (2024 rate) DKK 530.6m in Q1 2024, yielding 18.6% revenue growth. Key metrics, Q1 2025 The growth was driven by a combination of license revenue and continued growth in the public and EU are
Slide 21: Income statement Q1 2025
APPENDIX Q1 2025 Comments Income statement Q1 2025 Revenue increased by 9.1% to DKK 1,744.3m in reported currencies and was driven by increased activity in all business segments compared to the same quarter last year. Gross profit increased 16.1% to DKK 515.1m in Q1 DKK million Q1 2025 Q1 2024 % cha
Slide 22: Public sector Q1 2025
APPENDIX Q1 2025 Comments Public sector Q1 2025 Revenue from the public sector grew 13.5% in Q1 2025 driven by an increase in Denmark, SEE & EUI, UK and Norway. Public revenue in Denmark, SEE & EUI, UK and Norway increased by 6.5%, 22.3%, 11.7% and DKK million Q1 2025 Q1 2024 % change 33.8%, respect
Slide 23: Private sector Q1 2025
APPENDIX Q1 2025 Comments Private sector Q1 2025 Private revenue was on level with the same period last year. SEE & EUI and Netherlands grew revenue from the private sector, however, this was offset by decreased revenue from the private sector in Denmark, UK and Norway. Revenue from the private sect
Slide 24: Working days
APPENDIX Q1 2025 Working days 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 +3 +1 +1 0 0 Denmark -1 -3 -2 +3 +2 +1 0 0 Norway -1 -4 -2 +2 +1 +1 UK 0 0 0 0 -1 +3 +1 +1 +1 Netherlands 0 0 -1 -1 +1 +1 +1 Greece 0 0 0 0 +2 -2 +1 +1 0 0 0 Belgium -1 -1 +2 +1 +1 +1 Luxembourg 0 0 -1 -2 24
Slide 25: Statement of financial position
APPENDIX Q1 2025 Statement of financial position DKK million 31 March 31 March DKK million 31 March 31 March 2025 2024 2025 2024 Assets Equity and liabilities Intangible assets 3,707.0 3,724.3 Share capital 50.0 50.0 Treasury shares -911.4 -265.3 Tangible assets 888.5 923.6 Retained earnings 4,548.2
Slide 26: Free cash flow
APPENDIX Q1 2025 Free cash flow -1,478.2% 532.4 382.6 148.2 145.3 100.4 67.9 -4.9 -72.5 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 26
Slide 27: Cash conversion rate
APPENDIX Q1 2025 Cash conversion rate 431.1% +51.3pp 381.4% 93.0% 104.7% 89.5% 47.0% -4.3% -87.9% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 27
Slide 28: Our ambition: purpose, mission and vision
Our ambition Empowering Europe’s responsible digitalisation with IT talents Netcompany ee Purpose Our purpose is to leverage our digital know-how, talents and technology to build a modern Europe that values democracy, justice, transparency, and social security, empowering societies and citizens. | =
Slide 29: Equity story
Equity story Leading Europe’s digital future by 2030 Netcompany’s ambition is clear and resolute: to become a market leader in IT services in Europe by 2030. This goal is underpinned by a strategic focus on expansion, innovation, and leveraging our unique delivery capabilities and methodologies. Our
Slide 30: Exporting and implementing our business model
Exporting and implementing our business model Our business model and methodolo- gies are integral to our success: Proven methodology ‘Our approach to developing and implement- Ing complex solutions |s unique and difficult to emulate. This methodology will be applied to new joint projects with acquir
Slide 31: Business model
Business model Built to innovate Europe with responsible digitalisation Netcompany is a leading provider of next-generation IT solutions, focusing on three key elements: People, Sales & Delivery, and Execution. We SoS GRE aes ie create products, platforms, and \ging, meaningful tasks. solutions that
Slide 32: Netcompany presence
The map indicates countries in which we have more than 60 employees Netcompany presence 8,260 ~ * Workforce at year-end 26.4% @ Greece 2,825 Denmark 2,322 @ Luxembourg 750 i United Kingdom 679 1 Poland 487 1 Norway 379 1 Belgium 339 Vietnam 317 Netherlands 201 Others 61 Vietnam
Slide 33: netcompany.com
Netcompany netcompany.com