Netcompany Group A/s · OMXCOP:NETC

Netcompany Group A/s — Q2 2021 Earnings Presentation

26 slides from Netcompany Group A/s's earnings presentation, 2021

  1. Slide 1: Netcompany Q2 21

    netcompany Q2 21 © Copyright 2021 Netcompany. All rights reserved.

  2. 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,

  3. Slide 3: Presenters

    Presenters …will go through the business highlights for Q2 2021 and our …will go through the financial guidance for 2021. highlights for Q2 2021. André Rogaczewski Thomas Johansen NETCOMPANY CEO AND CO-FOUNDER NETCOMPANY CFO 3

  4. Slide 4: Highlights Q2 2021

    HIGHLIGHTS Q2 2021 Highlights Q2 2021 +22.4% +21.6% 826,7 +3.3% 3.238 675,5 2.663 161,3 166,7 Adjusted Revenue EBITA Average FTEs Q2 2020 +13.0% Q2 2021 293,4 -3.7pp 259,7 23.9% 20.2% Adjusted Gross profit EBITA margin 4

  5. Slide 5: Employee development Q2

    HIGHLIGHTS Q2 2021 Employee development Q2 #FTEs increased to 3,238 3,238 193 Average employee age 14 77 mid 30s. Non-client facing +12 177 2,663 UK contractors -63 181 361 Freelancers +40 77 37 123 Vietnam +71 106 260 United Kingdom +101 381 FTEs grew by 575 from 98 Netherlands +25 Q2 2020 to Q2 20

  6. Slide 6: New contracts

    HIGHLIGHTS Q2 2021 New contracts Netcompany was selected as Netcompany won the tender for the For the third time in a row, The Dutch Ministry for Foreign Netcompany won a 2-year contract vendor on the development and development and hosting of web Netcompany was awarded with the Affairs has awarded

  7. Slide 7: Status on acquisitions

    HIGHLIGHTS Q2 2021 Status on acquisitions * Constant currencies (2020 rate) Norway UK Netherlands Q: Revenue increased by 47.1% to Q: Revenue increased by 22.3% to Q: Revenue decreased by 2.9% to DKK 62.9m. DKK 98.1m. DKK 20.5m. YTD: Revenue increased by 37.8% to YTD: Revenue increased by 14.7% to Y

  8. Slide 8: Revenue visibility, DKK million

    HIGHLIGHTS Q2 2021 Revenue visibility, DKK million Public segment Private segment Total Netcompany Group 3,064.5 151,0 4.9% 1.231,7 40.2% 1,866.1 83.3 4.5% 792.6 42.5% 1,198.4 67.7 5.7% 439.1 36.6% 1.681,8 54.9% 990.3 53.1% 691.5 57.7% Revenue Contractual Non Total Revenue Contractual Non Total Reve

  9. Slide 9: Guidance 2021

    HIGHLIGHTS Q2 2021 Guidance 2021 Actual Updated Original Financial metrics in constant currencies performance target 2021 target 2021 2020 Organic revenue growth ~ 18-20% ~ 15-20% 15.5% Adjusted EBITA margin from organic business ~ 23-25% ~ 23-25% 26.3% Non-organic revenue growth 0 0 1.1% Reported r

  10. Slide 10: Financial highlights

    netcompany FINANCIAL HIGHLIGHTS

  11. Slide 11: Income statement Q2

    FINANCIAL HIGHLIGHTS Q2 2021 Income statement Q2 DKK million Q2 2021 Q2 2020 change Comments Revenue 826.7 675.5 22.4% Revenue increased by 22.4% to DKK Costs of services -533.3 -415.8 28.2% 826.7m in reported currencies. In Gross profit 293.4 259.7 13.0% constant currencies, growth was 21.2%. Sales

  12. Slide 12: Public segment Q2

    FINANCIAL HIGHLIGHTS Q2 2021 Public segment Q2 DKK million Q2 2021 Q2 2020 change Comments Income Statement Revenue 488.0 442.2 10.4% Public revenue growth of 10.4% was Costs of services -331.0 -274.8 20.4% driven by Norway and UK, which grew Gross profit 157.0 167.4 -6.2% 77.6% and 13.6%. Gross pro

  13. Slide 13: Private segment Q2

    FINANCIAL HIGHLIGHTS Q2 2021 Private segment Q2 DKK million Q2 2021 Q2 2020 change Comments Income Statement Revenue 338.7 233.4 45.1% Growth was 45.1% for the private Costs of services -202.3 -141.1 43.4% segment, mainly driven by the Danish, Gross profit 136.4 92.3 47.7% Norwegian and UK operation

  14. Slide 14: Revenue Q2

    FINANCIAL HIGHLIGHTS Q2 2021 Revenue Q2 Revenue in DKK million Comments Q2 2020 Q2 2021 Revenue increased 21.2% on Group level, driven by increase in client facing FTEs +21.2% and high utilisation in all entities compared to Q2 2020. 818,6 In Denmark, revenue grew by 19.9% as a +19.9% result of incr

  15. Slide 15: Gross profit margin Q2

    FINANCIAL HIGHLIGHTS Q2 2021 Gross profit margin Q2 Gross profit margin Comments Q2 2020 Q2 2021 Gross margin decreased by 3 percentage points to 35.5% against -5.7pp 38.4% in Q2 2020. Gross profit margin in Denmark 44.4pp -3.0pp decreased due to increased time on -5.8pp business development and inc

  16. Slide 16: Adjusted EBITA margin Q2

    FINANCIAL HIGHLIGHTS Q2 2021 Adjusted EBITA margin Q2 Adjusted EBITA margin (before allocated cost from HQ) Comments Q2 2020 Q2 2021 Adjusted EBITA margin at Group level decreased by 4.1 percentage points to -5.8pp 21.3%, as a result of the negative 31.9% development in gross profit margin and -4.1p

  17. Slide 17: Cashflow Q2

    FINANCIAL HIGHLIGHTS Q2 2021 Cashflow Q2 DKK million Q2 2021 Q2 2020 change Comments Operating profit (EBIT) 157.7 136.0 15.9% In Q2 2021, free cash flow decreased to Depreciation and amortisation 29.0 41.4 -30.1% negative DKK 10.2m compared to DKK Non-cash items 9.6 6.1 55.9% 103.1m in Q2 2020, mai

  18. Slide 18: netcompany

    netcompany

  19. Slide 19: Appendix

    APPENDIX

  20. Slide 20: Working days

    HIGHLIGHTS Q2 2021 Working days 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 +1 +1 +1 +1 Denmark 0 -1 +1,0 +1 +1 +1 +0,5 Norway 0,0 -1,5 +1 +1 UK 0 0 0 0 0 -1 +1 +1 +1 +1 Netherlands 0 0 -2 -1 Almost the same amount of workdays compared to 2020. Fewer workdays in Q1 and more in Q2 and Q4. 20

  21. Slide 21: Statement of financial position

    HIGHLIGHTS Q2 2021 Statement of financial position DKK million 30 June 30 June DKK million 30 June 30 June 2021 2020 2021 2020 Assets Equity and liabilities Intangible assets 2,433.0 2,500.0 Share capital 50.0 50.0 Tangible assets 200.0 155.1 Treasury shares -225.0 -175.0 Deferred tax assets 12.0 4.

  22. Slide 22: Work in progress overview

    ACTUAL FINANCIALS Q2 2021 Work in progress overview Work in progress compared to revenue Comments Work in progress increased by 16.3% to DKK 454.6m in Q2 2021. DKK million +19.6% Revenue increased by 22.4% to DKK 3,200 826.7m in Q2 2021. WIP Revenue Revenue for the last twelve months +22.4% increase

  23. Slide 23: Currency exposures Q2

    HIGHLIGHTS Q2 2021 Currency exposures Q2 DKK NOK GBP EUR VND PLN Local currency, million Revenue 637.1 92.7 11.7 2.7 0.0 0.0 EBIT 149.3 1.9 0.1 0.0 3,261.8 3.0 Net result 106.7 1.1 0.0 -0.2 2,739.7 2.3 NOK GBP EUR 80 2020 900 2020 749 2020 78 2021 890 2021 2021 76 880 748 74 870 747 72 860 70 850 74

  24. Slide 24: Free cash flow

    HIGHLIGHTS Q2 2021 Free cash flow -165.0% 210,5 173,8 136,0 115,0 75,7 -49,2 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 * Tax normalised 24

  25. Slide 25: Cash conversion rate

    HIGHLIGHTS Q2 2021 Cash conversion rate 120,9% -163.0% 110,6% 103,0% 77,8% 65,4% -41,2% Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 * Tax normalised & without the fair value adjustment for contingent liabilities 25

  26. Slide 26: We are committed

    WE ARE COMMITTED www.netcompany.com . © Copyright 2021 Netcompany. All rights reserved.

Netcompany — Q2 2021 Earnings Presentation on 6ix