Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q4 2020 Earnings Presentation
27 slides from Netcompany Group A/s's earnings presentation, 2021
Slide 1: Netcompany Q4 2020
NETCOMPANY Q4 2020
Slide 2: Important information
Important information . This report contains forward-looking statements including, but not limited to, the statements and expectations contained in the outlook section. Forward-looking statements are statements (other than statements of historical fact) relating to future events and Netcompany’s ant
Slide 3: Presenters
Presenters . …will go through the business highlights …will go through the for Q4 2020 and our guidance for 2021 financial highlights for Q4 2020. - André Rogaczewski, CEO - Thomas Johansen, CFO 3
Slide 4: Highlights Q4 2020
Highlights Q4 2020 Highlights Q4 2020 . DKK million Revenue Gross profit Adjusted Adjusted Average FTEs EBITA EBITA margin Q4 2020 772.7 327.7 223.5 28.9% 2,996 Change to +15.2% +15.5% +24.3% +2.1pp +21.4% Q4 2019 4
Slide 5: Highlights 2020
Highlights 2020 Highlights 2020 . DKK million Revenue Gross profit Adjusted Adjusted Average FTEs EBITA EBITA margin 2020 2,838.6 1,155.2 774.4 26.2% 2,768 Change to +15.7% +16% +20.6% +1.1pp +20.7% 2019 5
Slide 6: Employee development
Highlights Q4 2020 Employee development . #FTEs increased to 2,996 Change 2,996 Average employee 187 55 Non-client facing +25 age mid 30s. 58 2,468 127 UK contractors -95 162 345 Freelancers +22 150 36 129 +24 103 Vietnam FTEs grew by 528 from Q4 156 326 85 United Kingdom +189 2019 to Q4 2020. 284 2
Slide 7: New contracts and other important events in Q4 2020
Highlights Q4 2020 New contracts and other important events in Q4 2020 . Larger contract wins • Central administration and customer • New National Child Protection system • Participation in NHS Framework contract handling system for Health insurance (based on similar solution in Denmark) (first cont
Slide 8: Status on acquisitions
Highlights Q4 2020 Status on acquisitions . Norway UK Netherlands Revenue increased by 22.3% to DKK Revenue decreased by 10.9% to DKK Revenue increased by 90.5% to DKK 62.3m* (YTD: 9.6% - 217.5m)* 87.7m* (YTD: neg. 13.6% - 345m)* 31m* (YTD: 164.6% - 98.8m)* Adj. EBITA bef. HQ cost was 11.4% Adj. EBI
Slide 9: Environmental, Social and Governance
ESG highlights 2020 Environmental, Social and Governance . Target Actual Target ESG key figures overview Unit 2019 2018 2017 2021 2020 2020 CO2e. scope 1 (direct GHG emissions) Tons per FTE <0.08 0.06 <0.08 0.08 0.07 0.06 CO2e. scope 2 (indirect GHG emissions) Tons per FTE <0.21æ 0.12 <0.21 0.21 0.2
Slide 10: Revenue visibility, DKK million
Outlook for 2021 Revenue visibility, DKK million . Public segment Private segment Netcompany Group total 2,131.7 302.6 14.2% 1.305,3 146.9 11,3% 826.4 155.7 18.8% 1,829.1 85.8% 1,158.4 88,7% 670.7 81.2% Contractual Non Total Contractual Non Total Contractual Non Total committed contractual committed
Slide 11: Guidance for 2021
Outlook for 2021 Guidance for 2021 . Updated Targets Actual Financial metrics in constant currencies Targets 2021 2020 performance 2020 Organic revenue growth ~ 15-20% low end of 16-18% 15.5% Adjusted EBITA margin from organic ~23-25% ~25% 26.3% business Non-organic revenue growth 0 ~1% 1.1% Reporte
Slide 12: Financial Highlights
FINANCIAL HIGHLIGHTS . 12
Slide 13: Income statement
Actual financials Q4 2020 Income statement . DKK million Q4 2020 Q4 2019 % change Comments Income statement Revenue increased by 15.2% to DKK 772.7m in reported Revenue 772.7 671.0 15.2% currencies. In constant currencies revenue growth was 16.5%. Cost of services -445.1 -387.2 14.9% Gross profit 32
Slide 14: Income statement NL – Fair value adj. Contingent liabilities
Actual financials 2020 Income statement NL – Fair value adj. Contingent liabilities . Comments 2020 2019 Revenue increased 164% to DKK 98.6m. The increase in revenue and future expectation to revenue growth from Revenue Revenue 2019 to 2020 increased the total estimated purchase 99 DKKm 37 DKKm pric
Slide 15: Public segment
Actual financials Q4 2020 Public segment . % change Q4 2020 Q4 2019 (reported) Comments DKK million Revenue 465.9 406.9 14.5% Public growth driven by new wins in DK, NO and NO and continued strong performance on existing clients in all Cost of services -291.4 -250.5 16.3% units. Allocated costs -67.
Slide 16: Private segment
Actual financials Q4 2020 Private segment . % change Q4 2020 Q4 2019 (reported) Comments DKK million Revenue 306.9 264.1 16.2% Growth in the private segment attributable to the Danish operation which grew 36.4% in Q4 2020. Cost of services -153.6 -136.7 12.4% Allocated costs -36.6 -35.4 3.5% Adjuste
Slide 17: Revenue
Actual financials Q4 2020 Revenue . Revenue in DKK million Comments 2019 +16.5% In Denmark, revenue grew by 18.9% as a result of high 2020* activity in both the public and private sector. 781.6 +18.9% High activity in the Dutch business operation following 671.0 new public wins in Q4 2020. 600.6 505
Slide 18: Gross profit margin
Actual financials Q4 2020 Gross profit margin . Gross profit margin Comments 2019 2020* Gross margin decreased by 0.1 percentage point to 42.2% against 42.3% in Q4 2019 – NL having a positive -0.1pp impact on margin. -0.1pp 47.1% 47.0% Gross profit margin in Denmark for Q4 2020 was at same +13.5pp 4
Slide 19: Adjusted EBITA
Actual financials Q4 2020 Adjusted EBITA . Adjusted EBITA margin (before allocated cost from HQ) Comments 2019 2020* Adjusted EBITA margin at Group level increased by 1.9 +1.3pp percentage point to 29.9% driven by a margin increase in both the Danish and Dutch business operations. +47.4pp +1.9pp 34.
Slide 20: Cashflow
Actual financials Q4 2020 Cashflow . Q4 2020 Q4 2019 Comments DKK million Compared to Q4 2019, cash position has increased by Operating profit (EBIT) 200.0 154.4 DKK 226.6 million - after an investment in the JV of DKK 75 million and a repayment in debt of DKK 200 million Depreciation and amortisati
Slide 21: Netcompany
A netcompany
Slide 22: Appendix
APPENDIX . 22
Slide 23: Working days
Highlights Q4 2020 Working days 2019 2020 . Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 +1 +1 +1 +1 0 0 0 DK -2 +1 +1 +1 +1 +1 0 0 NO -2 +1 +1 +1 0 0 0 0 UK -1 +1 +1 +1 0 0 0 0 NL -2 Almost same amount of working days compared to More working days compared to 2019 – especially in Comments 2018, but with variances in th
Slide 24: Balance sheet
Actual financials Q4 2020 Balance sheet . Dec. 31 Dec. 31 Dec. 31 Dec. 31 DKK million 2020 2019 DKK million 2020 2019 Assets Equity and liabilities Intangible assets 2,451.1 2,550.6 Share capital 50.0 50.0 Tangible assets 135.3 146.2 Treasury shares -175.0 -175.0 Deferred tax assets 8.8 3.5 Exchange
Slide 25: Currency exposures
Actual financials Q4 2020 Currency exposures . Q4 2020 Local currency, million DKK NOK GBP EUR VND PLN Revenue 600.6 84.1 10.1 4.1 0.0 0.0 EBIT 193.9 4.1 -0.1 0.6 2,693.3 2.2 Net result 0.7 3.7 -0.2 0.8 2,213.5 1.7 NOK - exchange rates (DKK per 100 units currency) GBP - exchange rates (DKK per 100 u
Slide 26: Work in progress overview
Actual financials Q4 2020 Work in progress overview . Work in progress compared to revenue Comments DKK million Work in progress increased by 62.1% to DKK 434.9 in Q4 +15.7% 2020. 2,900 WIP Revenue +15.2% Revenue increased by 15.2% to DKK 772.7m in Q4 2020. 700 600 500 +62.1% 2,838.6 Work in progres
Slide 27: We are committed
WE ARE COMMITTED . www.netcompany.com © Copyright 2020 Netcompany. All rights reserved.