Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q3 2023 Earnings Presentation
31 slides from Netcompany Group A/s's earnings presentation, Nov 1, 2023
Slide 1: Netcompany
Netcompany re) 3 2) O 2) 3 ® Copyright Netcompany
Slide 2: Important information
Important information This report contains forward-looking statements predicted in the forward-looking statements and from competing products, reliance on information including, but not limited to, the statements and the past performance of Netcompany. technology, Netcompany’s ability to successfull
Slide 3: Presenters
Presenters André Rogaczewski NETCOMPANY CEO AND CO-FOUNDER …will go through the business highlights for Q3 2023 and our guidance for 2023. Thomas Johansen NETCOMPANY CFO …will go through the financial performance for Q3 2023.
Slide 4: Highlights Q3 2023
FINANCIAL HIGHLIGHTS Q3 2023 Highlights Q3 2023 +8.4% +10.2% 1,461.7 7,760 1,348.1 -28.8% 7,039 308.9 219.9 Adjusted Revenue EBITDA Average FTEs Q3 2022 Q3 2023 -14.6% -7.9pp 471.1 402.4 22.9% 15.0% Adjusted Gross profit EBITDA margin
Slide 5: New contracts Netcompany Core
HIGHLIGHTS Q3 2023 New contracts Netcompany Core Public segment, UK Netcompany have extended our relationship with NHS England through a competitive re-tender of our contract supporting the Patient Demographics Service for another two years. The Demographics service ensures NHS patients’ demographic
Slide 6: New contracts the DALAS framework
HIGHLIGHTS Q3 2023 New contracts the DALAS framework Public segment, UK Netcompany were selected as a supplier on the Crown Commercial Services (CCS) Digital and Legacy Application Services Framework (DALAS). We were selected in Lot 2a, Large scale Digital Integration and development services, which
Slide 7: New contracts Netcompany-Intrasoft
HIGHLIGHTS Q3 2023 New contracts Netcompany-Intrasoft Public segment, EU Netcompany-Intrasoft were awarded a four-year framework contract for layout and graphic design services to Frontex. Frontex delivers and updates information about its activities, addressing a wide range of audiences from the pu
Slide 8: Employee development Q3 2023
HIGHLIGHTS Q3 2023 Employee development Q3 2023 #FTEs increased to 7,760 Attrition rates 7,760 7,652 LTM September 2022 489 488 LTM September 2023 7,039 6,757 3 months rolling Sept/Oct 2023 817 463 807 42 443 60 264 40 728 267 51.1% 457 28 717 50 237 479 154 149 25 331 469 215 318 443 122 40 580 280
Slide 9: Guidance 2023
HIGHLIGHTS Q3 2023 Guidance 2023 Comments Q3 Actual Financial metrics in constant Target Netcompany realised a satisfactory performance Guidance performance currencies 2023 year to date in 2023 despite negative macro 2023 2022 environment impacts on the Danish private Group revenue growth, organic 8
Slide 10: Financial highlights
Financial highlights 10
Slide 11: Revenue Q3 2023 – Constant currencies
FINANCIAL HIGHLIGHTS Q3 2023 Revenue Q3 2023 – Constant currencies Revenue in DKK million Comments Q3 2022 Q3 2023* Revenue increased by 9.2% on Group level driven by growth in the international part of the +9.2% Group. 1,471.9 Revenue in the public segment in Denmark was 1,348.1 on level with Q3 20
Slide 12: Gross profit margin Q3 2023
FINANCIAL HIGHLIGHTS Q3 2023 Gross profit margin Q3 2023 Gross profit margin (before depreciation and amortisation) Comments Q3 2022 Q3 2023* Gross profit margin decreased by 7.6 percentage point to 27.8% against 35.4% in Q3 2022. This was primarily driven by a lower -8.2pp margin in Denmark, UK and
Slide 13: Adjusted EBITDA margin Q3 2023
FINANCIAL HIGHLIGHTS Q3 2023 Adjusted EBITDA margin Q3 2023 Adjusted EBITDA margin (before allocated cost from HQ) Comments Q3 2022 Q3 2023* Adjusted EBITDA margin at Group level decreased by 7.9 percentage points to 15.8%, as -9.8pp a consequence of lower gross profit margin and increased administr
Slide 14: Work in progress overview
FINANCIAL HIGHLIGHTS Q3 2023 Work in progress overview Work in progress compared to revenue Comments WIP Work in progress increased by 21.2% (on a net Revenue LTM basis) to DKK 1,021.1m in Q3 2023. DKK million Quarterly revenue increased by 8.4% to DKK 6,200 +16.2% 1,461.7m in Q3 2023. 6,000 Revenue
Slide 15: Cash flow Q3 2023
FINANCIAL HIGHLIGHTS Q3 2023 Cash flow Q3 2023 Comments DKK million Q3 2023 Q3 2022 change In Q3 2023, free cash flow was DKK 100.4m compared to DKK 221.5m in Q3 2022. Operating profit (EBIT) 138.5 240.1 -42.3% The decrease was mainly driven by a decrease Depreciation and amortisation 81.4 68.3 19.1
Slide 16: Revenue visibility, DKK million
HIGHLIGHTS Q3 2023 Revenue visibility, DKK million Public segment Private segment Total Netcompany Group 5,867.9 80.9 1.4% 474.9 8.1% 816.2 13.9% 3,991.4 41.9 367.2 9.2% 1.0% 544.7 13.6% 1,876.4 39.0 4,495.8 76.6% 107.7 2.1% 271.5 14.5% 5.7% 3,037.6 76.1% 1,458.2 77.7% Revenue Contractual Contractua
Slide 17: Q&A
Netcompany Q&A 7
Slide 18: Appendix
Appendix 18
Slide 19: Netcompany Core
HIGHLIGHTS Q3 2023 Netcompany Core * Constant currencies (2022 rate) Denmark UK Norway Netherlands Revenue decreased by 5.1% Revenue increased by 22% to Revenue increased by 7.3% to Revenue increased by 44.5% to Revenue to DKK 677.2m. DKK 161.2m. DKK 76.8m. DKK 37.6m. Adjusted EBITDA before Adjusted
Slide 20: Netcompany-Intrasoft
HIGHLIGHTS Q3 2023 Netcompany-Intrasoft * Constant currencies (2022 rate) Key metrics, Q3 2023 Comments Revenue in Q3 was DKK 519.1m compared to DKK 404.6m in Q3 2022, yielding 28.3% revenue growth. Revenue growth was driven by strong Total revenue Total Adj. Total EBITA 3,262 client performance in
Slide 21: Income statement Q3 2023
FINANCIAL HIGHLIGHTS Q3 2023 Income statement Q3 2023 Comments DKK million Q3 2023 Q3 2022 change Revenue increased by 8.4% to DKK 1,461.7m in reported currencies, all organic. Revenue 1,461.7 1,348.1 8.4% Gross profit decreased 14.6% to DKK 402.4m in Q3 2023, which was driven by lower gross profit
Slide 22: Public segment Q3
FINANCIAL HIGHLIGHTS Q3 2023 Public segment Q3 Comments DKK million Q3 2023 Q3 2022 change Public revenue growth of 13.4% was driven by Income Statement increase of revenue in Netherlands, Intrasoft and UK, which realised strong growth in Q3 2023 of Revenue 1,003.9 885.4 13.4% 46.1%, 29.1% and 25.5%
Slide 23: Private segment Q3
FINANCIAL HIGHLIGHTS Q3 2023 Private segment Q3 Comments DKK million Q3 2023 Q3 2022 change Growth was negative 1.1% for the private Income Statement segment, despite increased revenue in both Netcompany-Intrasoft and UK of 25% and 12.3% Revenue 457.8 462.8 -1.1% compared to Q3 2022, respectively. C
Slide 24: Working days
HIGHLIGHTS Q3 2023 Working days 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 +1 +1 0 0 0 Denmark -1 -1 -1 +2 +1 0 0 Norway -1 -1 -1 -1 0 0 0 0 0 UK -1 -1 +2 -1 +1 +1 0 Netherlands -1 -1 -2 -2 +1 0 0 0 0 0 Greece -1 -1 +1 0 0 0 0 0 Belgium -1 -1 +1 0 0 0 0 0 Luxemborg -1 -1 Fewer working days in 2023 than in 20
Slide 25: Statement of financial position
HIGHLIGHTS Q3 2023 Statement of financial position DKK million 30 September 30 September DKK million 30 September 30 September 2023 2022 2023 2022 Assets Equity and liabilities Intangible assets 3,739.7 3,869.9 Share capital 50.0 50.0 Tangible assets 912.6 295.5 Treasury shares -195.5 -302.9 Investm
Slide 26: Free cash flow
HIGHLIGHTS Q3 2023 Free cash flow -54.7% 323.4 221.5 134.7 141.6 100.4 50.5 7.3 -72.5 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023
Slide 27: Cash conversion rate
HIGHLIGHTS Q3 2023 Cash conversion rate -19.4pp 133.7% 112.5% 109.2% 93.0% 78.0% 32.0% 6.6% -87.9% Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023
Slide 28: Equity story
HIGHLIGHTS Q3 2023 Equity story Netcompany is a leading pure play next generation Netcompany Core Netcompany Expand native IT provider Use new technologies to develop solutions and Focuses on full implementation of the Focuses on acquisitive growth in Europe platforms. Netcompany methodology. to sup
Slide 29: Our markets
HIGHLIGHTS Q3 2023 Our markets
Slide 30: Our markets
HIGHLIGHTS Q3 2023 Our markets
Slide 31: netcompany.com
Netcompany netcompany.com