Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q4 2021 Earnings Presentation
38 slides from Netcompany Group A/s's earnings presentation, 2022
Slide 1: Q4 21
Q4 21 © Copyright 2021 Netcompany. All rights reserved.
Slide 2: Important information
Important information This report contains forward-looking statements could cause actual results to differ materially from decreases for Netcompany’s products, introduction of including, but not limited to, the statements and those predicted in the forward-looking statements and competing products,
Slide 3: Presenters
Presenters …will go through the business …will go through the financial highlights for 2021 and our performance for Q4 2021 and guidance for 2022. 2021 full year.
Slide 4: Highlights 2021
Highlights 2021 Adjusted Revenue EBITDA Average FTEs Adjusted Gross profit EBITDA margin
Slide 5: Employee development 2021
Employee development 2021 #FTEs increased to 5,417
Slide 6: New contracts
HIGHLIGHTS @4 2021 New contracts FlexDanmark Netcompany was selected as vendor for FlexDanmark’s new operational optimization platform called NOP. The new platform that will improve the largest Demand Responsive Transportation operation in the world with greener, more efficient planning and intuitiv
Slide 7: New contracts in Q1 2022
HIGHLIGHTS @4 2021 New contracts in Q1 2022 netcompany am RESILIENCE FACILITY First contract under the RRF in Greece Contract with Oslo Municipality laying a solid foundation for >» Contract value: DKK >150 million the future >» Length: 5 years » Contract value: DKK >225 million » Length: 4 years
Slide 8: Operating models
Operating models Netcompany consists of Netcompany Core Netcompany Expand two operating models:
Slide 9: Status on acquisitions – Netcompany Core
Status on acquisitions – Netcompany Core Norway UK Netherlands Revenue Adj. EBITA bef. HQ costs Focus areas Pipeline Other comments
Slide 10: Status on the acquisition of Netcompany-Intrasoft
Status on the acquisition of Netcompany-Intrasoft Key metrics, November & December 2022 Comments Order backlog for Netcompany Intrasoft
Slide 11: Revenue visibility, DKK million
Revenue visibility, DKK million Public segment Private segment Total Netcompany Group
Slide 12: Guidance 2021
Guidance 2021 Actual Updated Updated Original Financial metrics in constant Target performance target target target currencies 2022 2021 Q3 Q3 2021
Slide 13: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 14: Highlights Q4 2021
Highlights Q4 2021 Adjusted Revenue EBITDA Average FTEs Adjusted Gross profit EBITDA margin
Slide 15: Revenue Q4 – Constant currencies
Revenue Q4 – Constant currencies Revenue in DKK million Comments
Slide 16: Revenue 2021 – Constant currencies
Revenue 2021 – Constant currencies Revenue in DKK million Comments
Slide 17: Gross profit margin Q4
Gross profit margin Q4 Gross profit margin Comments
Slide 18: Gross profit margin 2021
Gross profit margin 2021 Gross profit margin Comments
Slide 19: Adjusted EBITA margin Q4
Adjusted EBITA margin Q4 Adjusted EBITA margin (before allocated cost from HQ) Comments
Slide 20: Adjusted EBITA margin 2021
Adjusted EBITA margin 2021 Adjusted EBITA margin (before allocated cost from HQ) Comments
Slide 21: Cashflow 2021
Cashflow 2021 2021 2020 change Comments Operating profit (EBIT) 703.8 644.9 9.1% Depreciation and amortisation 139.2 164.4 -15.3% Non-cash items 43.7 17.6 148.3% Working capital changes -189.2 -103.2 83.3% 359.0 132.3 171.2% Exchange changes on cash in foreign currencies 6.3 -6.9 -190.7%
Slide 22: netcompany
netcompany
Slide 23: Appendix
APPENDIX
Slide 24: Income statement Q4
Income statement Q4 Q4 2021 Q4 2020 change Comments Revenue 1,152.1 772.7 49.1% Costs of services -766.3 -445.1 72.2% Sales and marketing costs -18.8 -4.6 308.9% Administrative costs -156.8 -99.6 57.4% Special Items -7.7 0.0 N/A Other operating income -0.2 0.0 N/A Amortisation -24.3 -23.5 3.1% Net f
Slide 25: Income statement 2021
Income statement 2021 2021 2020 change Comments Revenue 3,632.0 2,838.6 27.9% Costs of services -2,298.7 -1,683.4 36.6% Sales and marketing costs -36.7 -17.1 114.7% Administrative costs -503.4 -393.7 27.9% Special Items -37.7 0.0 N/A Other operating income -0.2 0.0 N/A Amortisation -51.4 -99.4 -48.3
Slide 26: Public segment Q4
Public segment Q4 Q4 2021 Q4 2020 change Comments Revenue 758.5 465.9 62.8% Costs of services -529.3 -291.4 81.6% Gross profit margin 30.2% 37.4% -7.2pp Allocated costs -109.9 -61.6 78.3% Adjusted EBITA margin before allocated HQ cost 15.7% 24.2% -8.5pp Allocated cost from HQ -7.0 -5.9 18.5% Special
Slide 27: Private segment Q4
Private segment Q4 Q4 2021 Q4 2020 change Comments Revenue 393.6 306.9 28.3% Costs of services -237.0 -153.6 54.3% Gross profit margin 39.8% 49.9% -10.1pp Allocated costs -55.3 -33.4 65.5% Adjusted EBITA margin before allocated HQ cost 25.7% 39.0% -13.3pp Allocated cost from HQ -3.6 -3.2 11.3% Speci
Slide 28: Employee development Q4
Employee development Q4 #FTEs increased to 5,417
Slide 29: Working days
Working days 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Denmark Norway UK Netherlands
Slide 30: Statement of financial position
Statement of financial position 31 December 31 December 31 December 31 December 2021 2020 2021 2020 Intangible assets 3,896.2 2,451.1 Share capital 50.0 50.0 Tangible assets 316.9 135.3 Treasury shares -241.4 -175.0 Deferred tax assets 17.4 8.8 Other receivables 26.2 18.5 Retained earnings 3222.5 25
Slide 31: Cashflow Q4
Cashflow Q4 Q4 2021 Q4 2020 change Comments Operating profit (EBIT) 178.1 200.0 -10.9% Depreciation and amortisation 52.4 40.2 30.5% Non-cash items 11.0 10.8 1.4% Working capital changes 9.8 20.5 -51.9% 195.1 236.7 -17.6% Exchange changes on cash in foreign currencies 2.2 1.9 18.5%
Slide 32: Work in progress overview
Work in progress overview Work in progress compared to revenue Comments
Slide 33: Free cash flow
HIGHLIGHTS @4 2021 Free cash flow * Tax normalised f -23.6% 210.5 173.8 160.9 136.9 115.0 ~49.2 Q3 2020 Q@4 2020 Ql 2021 Q2 2021 Q3 2021 Q4 2021 netcompany 33
Slide 34: Cash conversion rate
HIGHLIGHTS @4 2021 Cash conversion rate *~ r “12.2% 127.9% | 118.5% 110.6% 112.3% 77.8% ~41.2% @3 2020 @4 2020 qi 2021 @2 2021 @3 2021 @4 2021 * Tax normalised & without the fair value adjustment for contingent liabilities netcompany 34
Slide 35: Equity story
Equity story Netcompany is a leading pure play next generation Netcompany Core Netcompany Expand native IT provider
Slide 36: Our markets
HIGHLIGHTS @4 2021 Our markets United Kingdom The UK market is the largest market in Europe and was entered in 2017 following the acquisition of Hunter Macdonald Ltd. ‘Adaressable market share 0.2% Netherlands The Dutch market is the second largest of those markots Netcompany aro present in and was
Slide 37: Our markets
HIGHLIGHTS @4 2021 Our markets 151,491 40,479 28,932 17,094 11,399 1,795 1330 w 1452 Impact from Recovery ard Restiance Faciity isnot included Core addressable IT spend in Target Markets 2021 (DKKm) oe 26.621 89,960, ee 24,037 79,105 se ER 20,321 Total IT service market (DkKm) exssting Target marker
Slide 38: www.netcompany.com
netcompany www.netcompany.com