Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — FY2023 Earnings Presentation
34 slides from Netcompany Group A/s's earnings presentation, 2024
Slide 1: Q4 and full year 2023
recone” “Q4 and full year 2023
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 Q4 2023 and full year and our guidance for 2024. Thomas Johansen NETCOMPANY CFO …will go through the financial performance for Q4 2023 and full year and our 2026 midterm targets. 3
Slide 4: Highlights Q4 and full year 2023
HIGHLIGHTS Q4 AND FULL YEAR 2023 Highlights Q4 and full year 2023 +9.6% +5.6% +11.3% 6,078.4 7,765 7,684 -18.5% 7,353 5,544.6 6,906 1,106.2 901.2 +4.2% -30.0% 1,519.3 1,582.6 348.9 Adjusted 244.1 Revenue EBITDA Average FTEs Q4 2022 Q4 2023 -3.9% YTD 2022 -7.5pp YTD 2023 1,772.5 1,703.0 -26.0% 23.0%
Slide 5: New contracts Netcompany Core
HIGHLIGHTS Q4 AND FULL YEAR 2023 New contracts Netcompany Core Public segment, DK Netcompany has won the bid to take over the responsibility of the Danish Cadastral System complex at the Danish Geodata Agency. The system is one of the authoritative basic data registries and it is the foundation for
Slide 6: New contracts Netcompany-Intrasoft
HIGHLIGHTS Q4 AND FULL YEAR 2023 New contracts Netcompany-Intrasoft Public segment, EU Netcompany-Intrasoft signed a 4-year framework agreement with the European Investment Bank for provision of IT consultancy services for maintenance, support, development and implementation of application and data
Slide 7: Employee development Q4 2023
HIGHLIGHTS Q4 AND FULL YEAR 2023 Employee development Q4 2023 FTEs increased to 7,765 Attrition rates 7,765 7,684 LTM December 2022 490 7,353 LTM December 2023 489 481 6,906 3 months rolling Dec/Jan 2024 849 822 453 50 36 773 46.9% 255 39 19 264 731 45 434 259 467 164 23 40 490 152 226 332 132 320 4
Slide 8: Guidance 2024
HIGHLIGHTS Q4 AND FULL YEAR 2023 Guidance 2024 Comments Actual Updated Original Financial metrics in constant Target Netcompany realised a strong performance in the performance target Q3 target currencies 2024 international part of the Group. This was 2023 2023 2023 somewhat offset by performance in
Slide 9: Financial highlights
Financial highlights 9
Slide 10: Revenue Q4 2023 – Constant currencies
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2023 Revenue Q4 2023 – Constant currencies Revenue in DKK million Comments Q4 2022 Q4 2023* Revenue increased by 4.9% on Group level driven by growth in the international part of the +4.9% Group. 1,594.2 Revenue in Denmark declined in total 3.6%, 1,519.3 caused
Slide 11: Gross profit margin Q4 2023
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2023 Gross profit margin Q4 2023 Gross profit margin (before depreciation and amortisation) Comments Q4 2022 Q4 2023* Gross profit margin decreased by 5.3 percentage points to 29.3% against 34.6% in Q4 2022. This was driven by lower margins in -5.8pp almost all
Slide 12: Adjusted EBITDA margin Q4 2023
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2023 Adjusted EBITDA margin Q4 2023 Adjusted EBITDA margin (before allocated cost from HQ) Comments Q4 2022 Q4 2023* Adjusted EBITDA margin at Group level decreased by 7 percentage points to 15.9%, -8.9pp driven by Denmark, Intrasoft and UK. 31.6% In Denmark and
Slide 13: Revenue full year 2023
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2023 Revenue full year 2023 Revenue in DKK million Comments YTD 2022 YTD 2023* Revenue increased by 10.7% on Group level. +10.7% Revenue in the Danish business was on level with 2022 at DKK 2,877.2m. During 2023 pipeline 6,135.7 conversion in the private segment
Slide 14: Gross profit margin full year 2023
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2023 Gross profit margin full year 2023 Gross profit margin (before depreciation and amortisation) Comments YTD 2022 YTD 2023* Gross profit margin decreased by 4.1 percentage points to 28.3% against 32.4% in 2022. The decrease was mainly caused by a lower -5.6pp
Slide 15: Adjusted EBITDA margin full year 2023
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2023 Adjusted EBITDA margin full year 2023 Adjusted EBITDA margin (before allocated cost from HQ) Comments YTD 2022 YTD 2023* Adjusted EBITDA margin at Group level decreased by 5.1 percentage points to 15.6%. -8.0pp In Denmark, margin was 22.2% compared to 30.2%
Slide 16: Work in progress overview
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2023 Work in progress overview Work in progress compared to revenue Comments WIP Work in progress increased by 3.2% (on a net Revenue LTM basis) to DKK 702.6m in Q4 2023. DKK million Quarterly revenue increased by 4.2% to DKK 6,200 +9.6% 1,582.6m in Q4 2023. 6,0
Slide 17: Cash flow Q4 2023
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2023 Cash flow Q4 2023 Comments DKK million Q4 2023 Q4 2022 change In Q4 2023, free cash flow was DKK 382.6m compared to DKK 323.4m in Q4 2022 corresponding to an improvement of DKK 59.2m Operating profit (EBIT) 165.9 281.6 -41.1% compared to the same quarter la
Slide 18: Revenue visibility, DKK million
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2023 Revenue visibility, DKK million Public segment Private segment Total Netcompany Group 4,904.1 338.0 6.9% 1,908.1 38.9% 3,465.2 167.4 4.8% 1,482.4 42.8% 1,438.9 170.6 11.9% 425.7 29.6% 2,658.0 54.2% 1,815.4 52.4% 842.6 58.6% Contractual Contractual Non Total
Slide 19: Midterm targets 2026
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2023 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 Operating entity Annual Growth 2024-2026 Margin improvements in Intrasoft >0.8% Denmark 7-12% Non
Slide 20: Q&A
Netcompany Q&A 20
Slide 21: Appendix
Appendix 21
Slide 22: Netcompany Core
APPENDIX Q4 AND FULL YEAR 2023 Netcompany Core * Constant currencies (2022 rate) Denmark UK Norway Netherlands Revenue decreased by 3.6% Revenue increased by 13.7% Revenue increased by 18.4% to Revenue increased by 48% to DKK Revenue to DKK 732.0m. to DKK 150.6m. DKK 102.5m. 45.3m. Adjusted EBITDA b
Slide 23: Netcompany-Intrasoft
APPENDIX Q4 AND FULL YEAR 2023 Netcompany-Intrasoft * Constant currencies (2022 rate) Key metrics, Q4 2023 Comments Revenue in Q4 was DKK 563.9m compared to DKK 510.4m in Q4 2022, yielding 10.5% revenue growth. Revenue growth was driven by strong Total revenue Total Adj. Adjusted 3,340 client perfor
Slide 24: Income statement Q4 2023
APPENDIX Q4 AND FULL YEAR 2023 Income statement Q4 2023 Comments DKK million Q4 2023 Q4 2022 change Revenue increased by 4.2% to DKK 1,582.6m in reported currencies. Revenue 1,582.6 1,519.3 4.2% Gross profit decreased 12% to DKK 457.7m in Q4 2023, which was driven by lower margins in all Costs of se
Slide 25: Public segment Q4
APPENDIX Q4 AND FULL YEAR 2023 Public segment Q4 Comments DKK million Q4 2023 Q4 2022 change Public revenue growth of 7.3% in Q4 2023 was Income Statement driven by increase of revenue in Netherlands, UK Revenue 1,070.9 998.1 7.3% and Intrasoft of 51%, 16.8% and 13.6%, Costs of services -779.1 -679.
Slide 26: Private segment Q4
APPENDIX Q4 AND FULL YEAR 2023 Private segment Q4 Comments DKK million Q4 2023 Q4 2022 change Private segment revenue declined 1.8%, despite Income Statement revenue growth in Norway and UK of 14.2% and Revenue 511.7 521.3 -1.8% 8.7% compared to Q4 2022, respectively. Costs of services -345.9 -320.0
Slide 27: Working days
APPENDIX Q4 AND FULL YEAR 2023 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 27
Slide 28: Statement of financial position
APPENDIX Q4 AND FULL YEAR 2023 Statement of financial position DKK million 31 December 31 December DKK million 31 December 31 December 2023 2022 2023 2022 Assets Equity and liabilities Share capital 50.0 50.0 Intangible assets 3,733.1 3,879.9 Treasury shares -193.1 -313.3 Tangible assets 946.9 332.2
Slide 29: Free cash flow
APPENDIX Q4 AND FULL YEAR 2023 Free cash flow +18.3% 382.6 323.4 221.5 141.6 100.4 50.5 7.3 -72.5 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 29
Slide 30: Cash conversion rate
APPENDIX Q4 AND FULL YEAR 2023 Cash conversion rate 297.4pp 431.1% 133.7% 112.5% 109.2% 93.0% 32.0% 6.6% -87.9% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 30
Slide 31: Appendix Q4 and full year 2023
APPENDIX Q4 AND FULL YEAR 2023 31
Slide 32: Appendix Q4 and full year 2023
APPENDIX Q4 AND FULL YEAR 2023 32
Slide 33: Appendix Q4 and full year 2023
APPENDIX Q4 AND FULL YEAR 2023 33
Slide 34: netcompany.com
Netcompany netcompany.com