Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q3 2022 Earnings Presentation
30 slides from Netcompany Group A/s's earnings presentation, 2022
Slide 1: Netcompany Q3 22
netcompany Q3 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 Q3 2022 and our …will go through the financial guidance for 2022. performance for Q3 2022. André Rogaczewski Thomas Johansen NETCOMPANY CEO AND CO-FOUNDER NETCOMPANY CFO 3
Slide 4: New contracts Netcompany Core
HIGHLIGHTS Q3 2022 New contracts Netcompany Core Netcompany has entered a multi- After a tender process Rejsekort & Netcompany has been selected Netcompany has been chosen by Rijkswaterstaat has chosen year collaboration with a major Rejseplan A/S (RKRP) has selected and will continue as the main th
Slide 5: New contracts Netcompany-Intrasoft
HIGHLIGHTS Q3 2022 New contracts Netcompany-Intrasoft Netcompany-Intrasoft was selected as the The project’s scope is the digitisation Netcompany-Intrasoft was selected as Netcompany-Intrasoft won a framework provider of support services for the (document scanning and data entry of the vendor to the
Slide 6: Employee development Q3 2022
HIGHLIGHTS Q3 2022 Employee development Q3 2022 #FTEs increased to 7,039 12 months rolling attrition rates LTM September 2021 3,952 LTM September 2022 274 3 months rollong churn Sep/Oct 2022 28 53 60 3,385 55.3% 237 Non-client facing 55 51.1% 214 50 72 14 3,088 Freelancers 485 185 189 Benelux contra
Slide 7: Netcompany Core
HIGHLIGHTS Q3 2022 Netcompany Core * Constant currencies (2021 rate) Denmark Norway UK Netherlands Revenue increased by 14.4% Revenue increased by 19.5% to Revenue increased by 34.1% to Revenue increased by 50.3% to to DKK 713.8m. DKK 69.7m. DKK 132.3m. DKK 26.0m. Revenue Adjusted EBITDA before Adju
Slide 8: Netcompany-Intrasoft
HIGHLIGHTS Q3 2022 Netcompany-Intrasoft Key metrics, Q3 2022 Comments Revenue in Q3 was DKK 404.6m compared to DKK 380m (proforma) in Q3 2021, yielding 6.5% revenue growth. Adjusted EBITDA margin before Total revenue Total Adj. Total EBITA 3,088 people allocated costs was 10.2% in Q3 2022 DKK 404.6m
Slide 9: Revenue visibility, DKK million
HIGHLIGHTS Q3 2022 Revenue visibility, DKK million Public segment Private segment Total Netcompany Group 5,296.2 81.0 1.5% 384.1 7.3% 805.8 15.2% 4,025.3 3,462.4 41.1 1.2% 312.8 9.0% 511.7 14.8% 1,833.8 40.0 76.0% 71.3 3.9% 2.2% 294.1 16.0% 2,596.9 75.0% 1,428.5 77.9% Revenue Contractual Contractual
Slide 10: Guidance 2022 – Maintained on Group level
HIGHLIGHTS Q3 2022 Guidance 2022 – Maintained on Group level Financial metrics in constant Updated target Actual Target 2022 currencies Q3 2022 performance 2021 Organic revenue growth in Netcompany Core 14-16% 14-19% 17.0% Group organic revenue growth 14-16% 13-18% 17.0% Non-organic revenue growth 3
Slide 11: Financial highlights
netcompany FINANCIAL HIGHLIGHTS
Slide 12: Highlights Q3 2022
FINANCIAL HIGHLIGHTS Q3 2022 Highlights Q3 2022 +68.9% +107.9% 1,348.1 +39.7% 7,039 308.9 798.0 221.1 3,385 Adjusted Revenue EBITDA Average FTEs Q3 2021 +43.4% Q3 2022 471.1 -4.8pp 328.4 27.7% 22.9% Adjusted Gross profit EBITDA margin 12
Slide 13: Revenue Q3 2022 – Constant currencies
FINANCIAL HIGHLIGHTS Q3 2022 Revenue Q3 2022 – Constant currencies Revenue in DKK million Comments Q2 2021 Q2 2021 proforma Q2 2022 Revenue increased 68.7% on Group level, driven by the acquisition of +68.7% Netcompany-Intrasoft. Organic revenue grew 18%. 1,346.4 In Denmark, revenue grew by 14.4% an
Slide 14: Gross profit margin Q3 2022
FINANCIAL HIGHLIGHTS Q3 2022 Gross profit margin Q3 2022 Gross profit margin (before depreciation and amortisation) Comments Q3 2021 Q3 2022* Gross margin decreased by 6.4 percentage points to 35.5% against 41.9% in Q3 2021 of +1.7pp which 6.7 percentage points was due to the inclusion of Netcompany
Slide 15: Adjusted EBITDA margin Q3 2022
FINANCIAL HIGHLIGHTS Q3 2022 Adjusted EBITDA margin Q3 2022 Adjusted EBITDA margin (before allocated cost from HQ) Comments Q3 2021 Q3 2021 proforma Q3 2022* Adjusted EBITDA margin at Group level +1.1pp decreased by 5.1 percentage points to 23.9%. Netcompany-Intrasoft impacted EBITDA 36.4% margin ne
Slide 16: Cashflow Q3 2022
FINANCIAL HIGHLIGHTS Q3 2022 Cashflow Q3 2022 Comments DKK million Q3 2022 Q3 2021 change In Q3 2022, free cash flow was DKK 221.5m compared to DKK 182.9m in Q3 2021, driven by the improved operating profit. Operating profit (EBIT) 240.1 160.9 49.2% Depreciation and amortisation 68.3 30.2 126.6% Tax
Slide 17: netcompany
netcompany
Slide 18: Appendix
APPENDIX
Slide 19: Income statement Q3 2022
FINANCIAL HIGHLIGHTS Q3 2022 Income statement Q3 2022 Comments DKK million Q3 2022 Q3 2021 change Revenue increased by 68.9% to DKK Income Statement 1,348.1m in reported currencies, whereas organic revenue accounted for 18.2 Revenue 1,348.1 798.0 68.9% percentage points. Costs of services -877.0 -46
Slide 20: Public segment Q3
FINANCIAL HIGHLIGHTS Q3 2022 Public segment Q3 DKK million Q3 2022 Q3 2021 change Comments Income Statement Public revenue growth of 91.8% was Revenue 885.4 461.6 91.8% driven by the inclusion of Netcompany- Costs of services -607.3 -281.0 116.1% Intrasoft. In addition, UK and NL grew Gross profit 2
Slide 21: Private segment Q3
FINANCIAL HIGHLIGHTS Q3 2022 Private segment Q3 DKK million Q3 2022 Q3 2021 change Comments Income Statement Growth was 37.6% for the private Revenue 462.8 336.4 37.6% segment, mainly driven by the inclusion Costs of services -269.7 -188.6 43.0% of Netcompany-Intrasoft, which Gross profit 193.1 147.
Slide 22: Working days
HIGHLIGHTS Q3 2022 Working days 2021 2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 +1 +1 +1 Denmark 0 0 0 0 -1 +1,5 +1 Norway +1 0 0,0 0,0 -0,5 -2 UK 0 0 0 0 0 -1 -1 -1 +1 +1 +1 Netherlands 0 0 -1 -2 -2 Almost the same amount of workdays compared to 2021. More workdays in Q1 and less in Q2 and Q4. 22
Slide 23: Statement of financial position
HIGHLIGHTS Q3 2022 Statement of financial position 30 September 30 September 30 September 30 September DKK million 2022 2021 DKK million 2022 2021 Assets Equity and liabilities Intangible assets 3,869.9 2,424.0 Share capital 50.0 50.0 Tangible assets 295.5 220.9 Treasury shares -302.9 -220.5 Retaine
Slide 24: Work in progress overview
FINANCIAL HIGHLIGHTS Q3 2022 Work in progress overview Work in progress compared to revenue Comments WIP Revenue Work in progress increased by 73.7% to DKK 842.7m in Q3 2022. DKK million +68.9% Work in progress in Netcompany Core 1,350 was reduced by 15.4% to DKK 410.6m. +73.7% Revenue increased by
Slide 25: Free cash flow
HIGHLIGHTS Q3 2022 Free cash flow 18.6% 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 * Tax normalised 25
Slide 26: Cash conversion rate
HIGHLIGHTS Q3 2022 Cash conversion rate -27.9% 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 * Tax normalised & without the fair value adjustment for contingent liabilities 26
Slide 27: Equity story
HIGHLIGHTS Q3 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 28: Our markets
HIGHLIGHTS Q3 2022 Our markets 28
Slide 29: Our markets
HIGHLIGHTS Q3 2022 Our markets 29
Slide 30: www.netcompany.com
netcompany www.netcompany.com