Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q4 2022 Earnings Presentation
33 slides from Netcompany Group A/s's earnings presentation, February 2023
Slide 1: Netcompany Q4 22
netcompany Q4 22 © Copyright 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 highlights for Q4 2022 and our …will go through the financial guidance for 2023. performance for Q4 2022. André Rogaczewski Thomas Johansen NETCOMPANY CEO AND CO-FOUNDER NETCOMPANY CFO 3
Slide 4: Highlights Q4 2022
FINANCIAL HIGHLIGHTS Q4 2022 Highlights Q4 2022 +31.9% +35.7% 1,519.3 +46.4% 7,353 1,152.1 5,417 348.9 238.2 Adjusted Revenue EBITDA Average FTEs Q4 2021 +34.8% Q4 2022 +2.3pp 520.0 385.8 23.0% 20.7% Adjusted Gross profit EBITDA margin 4
Slide 5: New contracts Netcompany Core
HIGHLIGHTS Q4 2022 New contracts Netcompany Core Netcompany has been selected In December 2022, Netcompany In December 2022, Netcompany UK The Danish Fisheries Agency has Netcompany was chosen to to cooperate with Energinet on UK Ltd was awarded a contract by Ltd was awarded a contract by His chosen
Slide 6: New contracts Netcompany-Intrasoft
HIGHLIGHTS Q4 2022 New contracts Netcompany-Intrasoft Netcompany-Intrasoft signed a contract to The scope of the contract that Netcompany-Intrasoft won a 2-year Netcompany-Intrasoft was selected as the Netcompany-Intrasoft signed with the service contract for the design, provider of development, con
Slide 7: Employee development Q4 2022
HIGHLIGHTS Q4 2022 Employee development Q4 2022 #FTEs increased to 7,353 12 months rolling attrition rates LTM December 2021 4,137 LTM December 2022 289 3 months rolling December 2022 19 44 50 46.9% 3,509 259 Non-client facing 45 41.6% 232 3,216 Freelancers 506 40 16 68 194 192 Benelux contractors 2
Slide 8: Performance vs Guidance 2022 and 2023 targets
HIGHLIGHTS Q4 2022 Performance vs Guidance 2022 and 2023 targets Actual Updated Financial metrics in constant Original Target 2023 performance target Q3 currencies Target 2022 2022 2022 Organic revenue growth in Netcompany 13.7% 14-16% 14-19% Core Group organic revenue growth 14.7% 14-16% 13-18% Non
Slide 9: Strengthening customer engagement
FINANCIAL HIGHLIGHTS Q4 2022 Strengthening engagement customer engagement Building on our Danish success Building a replicable Go-To-Market Model » Strong Seat-At-The-Table based on repeated delivery » Analytical approach to pre-selection of markets, tenders success in Denmark, but not as strong in
Slide 10: One common approach
FINANCIAL HIGHLIGHTS Q4 2022 One common approach Replicate solutions already implemented – we are already doing it Covid passport in DK, NO, UK and SCO Statens legemiddelverk in NO Customs all around Europe Road Tolling – Fremtind, FLYT, BroBizz Utilities in DK, UK, and NO (e.g. Waste Management) …
Slide 11: Capital Markets Day June 2023
Capital Markets Day 1 June 2023 @Netcompany’s new Corporate HQ Copenhagen Denmark 11
Slide 12: Financial Highlights
netcompany FINANCIAL HIGHLIGHTS
Slide 13: Revenue Q4 2022 – Constant currencies
FINANCIAL HIGHLIGHTS Q4 2022 Revenue Q4 2022 – Constant currencies Revenue in DKK million Comments Q4 2021 Q4 2021 proforma Q4 2022 Revenue increased 32.5% on Group level, based on strong growth in all units. +32.5% In Denmark, revenue grew by 12.7% and was mainly driven from strong growth in 1,526.
Slide 14: Gross profit margin Q4 2022
FINANCIAL HIGHLIGHTS Q4 2022 Gross profit margin Q4 2022 Gross profit margin (before depreciation and amortisation) Comments Q4 2021 Q4 2022* Gross margin increased by 0.2 percentage points to 34.7% against 34.5% in Q4 2021. +1.1pp In Denmark, margin increased by 1.1 percentage points caused by stro
Slide 15: Adjusted EBITDA margin Q4 2022
FINANCIAL HIGHLIGHTS Q4 2022 Adjusted EBITDA margin Q4 2022 Adjusted EBITDA margin (before allocated cost from HQ) Comments Q4 2021 Q4 2021 proforma Q4 2022* Adjusted EBITDA margin at Group level +0.3pp increased by 1.3 percentage points to 22.9%. In Denmark, margin increased by 0.3 31.3% 31.6% perc
Slide 16: Work in progress overview
FINANCIAL HIGHLIGHTS Q4 2022 Work in progress overview Work in progress compared to revenue Comments WIP Revenue Work in progress increased by 1.8% (on a net basis) to DKK 681m in Q4 2022. DKK million +31.9% Revenue increased by 31.9% to DKK 1,550 1,519.3m in Q4 2022. 1,500 Better processes around m
Slide 17: Cashflow Q4 2022
FINANCIAL HIGHLIGHTS Q4 2022 Cashflow Q4 2022 Comments DKK million Q4 2022 Q4 2021 change In Q4 2022, free cash flow was DKK 323.4m compared to DKK 134.7m in Q4 2021. The improvement was driven by a Operating profit (EBIT) 281.6 178.1 58.1% combination of a stronger result and Depreciation and amort
Slide 18: Revenue visibility, DKK million
HIGHLIGHTS Q4 2022 Revenue visibility, DKK million Public segment Private segment Total Netcompany Group 4,179.9 426.8 10.2% 1,547.5 37.0% 2,890.1 219.5 7.6% 2,205.6 1,256.6 43.5% 1,289.7 1,414.0 207.3 16.0% 290.9 22.6% 52.8% 791.6 48.9% 61.4% Contractual Contractual Non Total Contractual Contractua
Slide 19: Netcompany
netcompany
Slide 20: Appendix
APPENDIX
Slide 21: Netcompany Core
HIGHLIGHTS Q4 2022 Netcompany Core * Constant currencies (2021 rate) Denmark Norway UK Netherlands Revenue increased by 12.7% Revenue increased by 33.2% to Revenue increased by 32.9% to Revenue increased by 34.5% to to DKK 759.3m. DKK 90.4m. DKK 135.8m. DKK 30.6m. Revenue Adjusted EBITDA before Adju
Slide 22: Netcompany-Intrasoft
HIGHLIGHTS Q4 2022 Netcompany-Intrasoft Key metrics, Q4 2022 Comments Revenue in Q4 was DKK 510.4m compared to DKK 409.9m (proforma) in Q4 2021, yielding 24.5% revenue growth. Revenue growth was driven by strong Total revenue Total Adj. Total EBITA 3,216 people performance in the public and the DKK
Slide 23: Income statement Q4 2022
FINANCIAL HIGHLIGHTS Q4 2022 Income statement Q4 2022 Comments DKK million Q4 2022 Q4 2021 change Revenue increased by 31.9% to DKK 1,519.3m in reported currencies, whereas organic revenue accounted for 18.9 percentage Revenue 1,519.3 1,152.1 31.9% points. Costs of services -999.3 -766.3 30.4% Gross
Slide 24: Public segment Q4
FINANCIAL HIGHLIGHTS Q4 2022 Public segment Q4 DKK million Q4 2022 Q4 2021 change Comments Income Statement Public revenue growth of 31.6% was Revenue 998.1 758.5 31.6% driven by the inclusion of Netcompany- Costs of services -679.3 -529.3 28.3% Intrasoft. In addition, the Netherlands Gross profit 3
Slide 25: Private segment Q4
FINANCIAL HIGHLIGHTS Q4 2022 Private segment Q4 DKK million Q4 2022 Q4 2021 change Comments Income Statement Growth was 32.4% for the private Revenue 521.3 393.6 32.4% segment, driven by the inclusion of Costs of services -320.0 -237.0 35.0% Netcompany-Intrasoft, which accounted Gross profit 201.2 1
Slide 26: Working days
HIGHLIGHTS Q4 2022 Working days 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 +1 +1 Denmark 0 0 0 +2 +1 -1 -1 -1 Norway 0 0 -1 -1 -1 -1 0 0 0 0 0 UK +2 +1 -1 -1 +1 -1 Netherlands 0 -1 -1 -2 -2 +1 0 0 0 0 0 Greece -1 +1 -1 Beligum 0 0 0 0 0 -1 +1 -1 Luxemborg 0 0 0 0 0 -1 -1 Fewer working days in 2023 than in 20
Slide 27: Statement of financial position
HIGHLIGHTS Q4 2022 Statement of financial position 31 December 31 December 31 December 31 December DKK million DKK million 2022 2021 2022 2021 Equity and liabilities Assets Share capital 50.0 50.0 Intangible assets 3,879.9 3,896.2 Treasury shares -313.3 -241.4 Retained earnings 3,784.0 3,222.5 Tangi
Slide 28: Free cash flow
HIGHLIGHTS Q4 2022 Free cash flow 55.5% 361.4 173.8 168.2 160.9 136.9 126.8 -20.5 -49.2 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 * Tax normalised 28
Slide 29: Cash conversion rate
HIGHLIGHTS Q4 2022 Cash conversion rate +28.9% 144.7% 118.5% 110.6% 112.3% 85.4% 80.2% -18.5% -41.2% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 * Tax normalised & without the fair value adjustment for contingent liabilities 29
Slide 30: Equity story
HIGHLIGHTS Q4 2022 Equity story Netcompany is a leading pure play next generation Netcompany Core Netcompany Expand native IT provider Use new technologies to develop solutions and platforms Focuses on full implementation of the Focuses on acquisitive growth in Europe Netcompany methodology. to supp
Slide 31: Our markets
HIGHLIGHTS Q4 2022 Our markets 31
Slide 32: Our markets
HIGHLIGHTS Q4 2022 Our markets 32
Slide 33: www.netcompany.com
netcompany www.netcompany.com