Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q1 2024 Earnings Presentation
30 slides from Netcompany Group A/s's earnings presentation, May 3, 2024
Slide 1: Netcompany
Netcompany ‘O1 y) @) 94 © 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 Q1 2024 and our guidance for 2024. Thomas Johansen NETCOMPANY CFO …will go through the financial performance for Q1 2024. 3
Slide 4: Highlights Q1 2024
HIGHLIGHTS Q1 2024 Highlights Q1 2024 +3.8% +3.9% +2.1% 7,808 1,540.2 1,598.1 7,513 242.1 247.1 Adjusted Revenue EBITDA Average FTEs Q1 2023 Q1 2024 -0.5% -0.3pp 440.1 438.1 15.7% 15.5% Adjusted Gross profit EBITDA margin 4
Slide 5: New contracts Netcompany Core
HIGHLIGHTS Q1 2024 New contracts Netcompany Core Public segment, Norway In Q1 2024 Netcompany signed new contracts, with a total of 21 new municipalities, for the child welfare solution, Modulus Barn, in the regions of Trøndelag and Valdres. These municipalities come on top of the 70 municipalities
Slide 6: New contracts Netcompany-Intrasoft
HIGHLIGHTS Q1 2024 New contracts Netcompany-Intrasoft Public segment, EU Netcompany-Intrasoft signed a 3+1 year framework agreement with the European Agency for the Operational Management of Large-Scale IT Systems in the Area of Freedom, Security and Justice (eu-LISA) to provide ICT consultancy serv
Slide 7: Employee development Q1 2024
HIGHLIGHTS Q1 2024 Employee development Q1 2024 FTEs increased to 7,808 Attrition rates 7,808 LTM March 2023 7,513 LTM March 2024 490 493 3 months rolling Dec/Jan 2024 904 801 45 42.6% 28 250 32 40 426 268 35.7% 163 497 35 33.1% 33.1% 321 142 Non-client facing 29.0% 306 30 26.2% 26.6% 553 Freelancer
Slide 8: Guidance 2024
HIGHLIGHTS Q1 2024 Comments Guidance 2024 Netcompany realised results in line with expectations in Q1 2024. Despite fewer working days related to the timing of Easter the Group realised Adjusted EBITDA margin in line with Q1 2023. Original Actual Financial metrics in constant target performance The
Slide 9: Financial highlights
Financial highlights 9
Slide 10: Revenue Q1 2024 – Constant currencies
FINANCIAL HIGHLIGHTS Q1 2024 Comments Revenue Q1 2024 – Constant currencies Revenue increased by 3.6% on Group level thus fewer working days in Denmark, Norway and Netherlands impacted revenue negatively. Revenue in DKK million Revenue in Denmark was on par with Q1 2023. Q1 2023 Adjusted for fewer w
Slide 11: Gross profit margin Q1 2024
FINANCIAL HIGHLIGHTS Q1 2024 Comments Gross profit margin Q1 2024 Gross profit margin was 28%, compared to 28.9% the same period last year. The lower margin was driven by fewer working days Gross profit margin (before depreciation and amortisation) compared to same period last year, which more than
Slide 12: Adjusted EBITDA margin Q1 2024
FINANCIAL HIGHLIGHTS Q1 2024 Comments Adjusted EBITDA margin Q1 2024 Adjusted EBITDA margin at Group level was on par with Q1 2023 despite fewer working days in the quarter. Adjusted EBITDA margin (before allocated cost from HQ) In Denmark margin increased 2.1 percentage Q1 2023 points compared to Q
Slide 13: Work in progress overview
FINANCIAL HIGHLIGHTS Q1 2024 Comments Work in progress overview Work in progress decreased by 2.7% (on a net basis) to DKK 909.9m in Q1 2024. Quarterly revenue increased by 3.8% to DKK Work in progress compared to revenue 1,598.1m in Q1 2024. WIP Revenue in the prevailing 12 months increased Revenue
Slide 14: Cash flow Q1 2024
FINANCIAL HIGHLIGHTS Q1 2024 Comments Cash flow Q1 2024 In Q1 2024, free cash flow was negative DKK 4.9m compared to DKK 141.6m in Q1 2023 caused by the timing of tax payments and working capital changes impacted by Easter. DKK million Q1 2024 Q1 2023 % change The trade receivables paid in the follo
Slide 15: Revenue visibility, DKK million
FINANCIAL HIGHLIGHTS Q1 2024 Revenue visibility, DKK million Public segment Private segment Total Netcompany Group 5,420.7 255.6 4.7% 1,424.7 26.3% 3,781.6 127.8 3.4% 1,113.6 29.4% 2,142.3 39.5% 1,639.2 127.8 7.8% 1,451.5 38.4% 311.1 19.0% 690.8 42.1% 1,598.1 29.5% 1,088.7 28.8% 509.4 31.1% Revenue
Slide 16: Q&A
Netcompany Q&A 16
Slide 17: Appendix
Appendix 17
Slide 18: Netcompany Core
APPENDIX Q1 2024 Netcompany Core * Constant currencies (2023 rate) Denmark UK Norway Netherlands Revenue was on par with Q1 Revenue decreased by 4.1% Revenue increased by 0.1% to Revenue increased by 41% to DKK Revenue 2023. to DKK 157.9m. DKK 90m. 48.4m. Adjusted EBITDA before Adjusted EBITDA befor
Slide 19: Netcompany-Intrasoft
APPENDIX Q1 2024 Comments Netcompany-Intrasoft Revenue in Q1 was DKK 529.6m compared to * Constant currencies (2023 rate) DKK 482m in Q1 2023, yielding 9.9% revenue growth. Key metrics, Q1 2024 Revenue growth was driven by strong performance in the public and EU area. Adjusted EBITDA margin before a
Slide 20: Midterm targets 2026
APPENDIX Q1 2024 Midterm targets 2026 Adjusted EBITDA margin guidance midterm 2026 FY 2023 15% Flatlining of HQ and Go-To-Market costs >0.3% Organic revenue growth towards 2026 Margin improvements in Intrasoft >0.8% Operating entity Annual Growth 2024-2026 Denmark 7-12% Non-recurring impacts related
Slide 21: Income statement Q1
APPENDIX Q1 2024 Comments Income statement Q1 Revenue increased by 3.8% to DKK 1,598.1m in reported currencies. Gross profit decreased 0.5% to DKK 438.1m in Q1 2024, which was driven by fewer working days DKK million Q1 2024 Q1 2023 % change in Q1 2024 compared to same period last year, and more tha
Slide 22: Public segment Q1
APPENDIX Q1 2024 Comments Public segment Q1 Public revenue growth of 6.3% in Q1 2024 was driven by increase of revenue in Denmark, Intrasoft and Netherlands of 1.6%, 13.9% and 42%, respectively. DKK million Q1 2024 Q1 2023 % change Gross profit margin was 26.3%, which was a decrease of 0.2 percentag
Slide 23: Private segment Q1
APPENDIX Q1 2024 Comments Private segment Q1 Private segment revenue declined 1.2%, but adjusted for the timing of Easter, the private segment would have realised growth in Q1 2024. Private revenue in Denmark, Intrasoft and DKK million Q1 2024 Q1 2023 % change Norway decreased by 2.5%, 1% and 4.6%,
Slide 24: Working days
APPENDIX Q1 2024 Working days 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 +1 +3 +1 Denmark -1 -1 -1 -1 -3 +1 +3 +1 Norway -1 -1 -1 -1 -4 +2 +1 +1 0 0 0 0 UK +2 -1 +1 +1 +1 +1 Netherlands -1 -1 -1 +1 +1 +1 +1 0 0 0 Greece -1 +1 +2 +1 0 0 Belgium 0 0 -1 +1 +2 +1 +1 0 0 Luxembourg 0 -1 24
Slide 25: Statement of financial position
APPENDIX Q1 2024 Statement of financial position DKK million 31 March 31 March DKK million 31 March 31 March 2024 2023 2024 2023 Assets Equity and liabilities Share capital 50.0 50.0 Intangible assets 3,724.3 3,755.3 Treasury shares -265.3 -186.5 Tangible assets 923.6 390.2 Retained earnings 4,039.5
Slide 26: Free cash flow
APPENDIX Q1 2024 Free cash flow -103.5% 382.6 323.4 221.5 141.6 100.4 7.3 -4.9 -72.5 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 26
Slide 27: Cash conversion rate
APPENDIX Q1 2024 Cash conversion rate -113.5% 431.1% 133.7% 112.5% 109.2% 93.0% 6.6% -4.3% -87.9% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 27
Slide 28: We are Netcompany
APPENDIX Q1 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 29: Netcompany's philosophy
APPENDIX Q1 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 30: netcompany.com
Netcompany netcompany.com