Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q1 2021 Earnings Presentation
30 slides from Netcompany Group A/s's earnings presentation, 2021
Slide 1: Netcompany Q1 21
netcompany Q1 21 © Copyright 2021 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 Q1 2021 and our …will go through the financial guidance for 2021. highlights for Q1 2021. André Rogaczewski Thomas Johansen NETCOMPANY CEO AND CO-FOUNDER NETCOMPANY CFO 3
Slide 4: Highlights Q1 2021
HIGHLIGHTS Q1 2021 Highlights Q1 2021 +22.9% +20.3% 855.1 +31.9% 3,109 695.6 2,585 216.3 164.1 Adjusted Revenue EBITA Average FTEs Q1 2020 +18.6% Q1 2021* +1.7pp 325.7 274.5 23.6% 25.3% Adjusted Gross profit EBITA margin 4
Slide 5: Employee development Q1
HIGHLIGHTS Q1 2021 Employee development Q1 #FTEs increased to 3,109 3,109 Average employee age 186 Non-client facing +11 mid 30s. 47 59 UK contractors -89 158 2,585 Freelancers +24 175 342 Vietnam +52 136 36 130 United Kingdom 106 +150 FTEs grew by 524 from 192 352 Netherlands +41 Q1 2020 to Q1 2021
Slide 6: New contracts
HIGHLIGHTS Q1 2021 New contracts Development, Case management Additional work relating Additional tasks and Additional wins under the maintenance and solution, based on to strategic initiatives and projects relating to the NHS framework contract operation of Denmarks GetOrganized from tasks for DSV
Slide 7: Status on acquisitions
HIGHLIGHTS Q1 2021 Status on acquisitions Norway UK Netherlands Q: Revenue increased by 30.6% to Q: Revenue increased by 8.5% to DKK Q: Revenue increased by 22.9% to DKK 71.7m. 106.6m. DKK 21.7m. Revenue Q: DKK 12.7m yielding a margin of Q: DKK -2.3m yielding a margin of Q: DKK 9.6m yielding a margi
Slide 8: Revenue visibility, DKK million
HIGHLIGHTS Q1 2021 Revenue visibility, DKK million Public segment Private segment Total Netcompany Group 2,765.4 219.2 7.9% 1,683.7 117.7 7.0% 1,691.1 61.2% 1,081.6 1,063.7 63.2% 101.4 9.4% 627.4 58.0% 855.1 30.9% 502.3 29.8% 352.8 32.6% Revenue Contractual Non Total Revenue Contractual Non Total Re
Slide 9: Guidance 2021
HIGHLIGHTS Q1 2021 Guidance 2021 Actual Financial metrics in constant currencies Target 2021 performance 2020 Organic revenue growth ~ 15-20% 15.5% Adjusted EBITA margin from organic business ~ 23-25% 26.3% Non-organic revenue growth 0 1.1% Reported revenue growth ~ 15-20% 16.6% Adjusted EBITA margi
Slide 10: Financial highlights
netcompany FINANCIAL HIGHLIGHTS
Slide 11: Income statement Q1
FINANCIAL HIGHLIGHTS Q1 2021 Income statement Q1 DKK million Q1 2021 Q1 2020 change Comments Revenue 855.1 695.6 22.9% Revenue increased by 22.9% to DKK Costs of services -529.5 -421.0 25.8% 855.1m in reported currencies. In Gross profit 325.7 274.5 18.6% constant currencies revenue growth was Sales
Slide 12: Public segment Q1
FINANCIAL HIGHLIGHTS Q1 2021 Public segment Q1 DKK million Q4 2020 Q4 2019 change Comments Income Statement Revenue 502.3 433.3 15.9% Public growth driven by new wins in Costs of services -336.4 -272.5 23.4% Denmark, Norway and UK and continued Gross profit 166.0 160.8 3.2% strong performance on exi
Slide 13: Private segment Q1
FINANCIAL HIGHLIGHTS Q1 2021 Private segment Q1 DKK million Q1 2021 Q1 2020 change Comments Income Statement Revenue 352.8 262.2 34.6% Growth on Group level for the private Costs of services -193.1 -148.5 30.0% segment was 34.6%, mainly driven by Gross profit 159.7 113.7 40.5% the Danish operation a
Slide 14: Revenue Q1
FINANCIAL HIGHLIGHTS Q1 2021 Revenue Q1 Revenue in DKK million Comments Q1 2020 Q1 2021* Revenue increased 23% on Group level, driven by increase in client facing FTEs +23.0% and high utilisation in all entities. In Denmark, revenue grew by 25% as a 855.8 result of high activity in both the public +
Slide 15: Gross profit margin Q1
FINANCIAL HIGHLIGHTS Q1 2021 Gross profit margin Q1 Gross profit margin Comments Q1 2020 Q1 2021* Gross margin decreased by 1.6 percentage points to 37.9% against -0.9pp 39.5% in Q1 2020. -1.6pp Gross profit margin in Denmark 43.6pp 42.7pp decreased due to increased usage of 39.5pp sub-contractors.
Slide 16: Adjusted EBITA margin Q1
FINANCIAL HIGHLIGHTS Q1 2021 Adjusted EBITA margin Q1 Adjusted EBITA margin (before allocated cost from HQ) Comments Q1 2020 Q1 2021* Adjusted EBITA margin at Group level +0.9pp increased by 0.5 percentage point to 25.9%, driven by a strong performance +0.5pp in Denmark and Norway. 30.8% 29.9% Margi
Slide 17: Cashflow Q1
FINANCIAL HIGHLIGHTS Q1 2021 Cashflow Q1 DKK million Q1 2021 Q1 2020 change Comments Operating profit (EBIT) 207.2 138.8 49.3% Free cash flow increased to DKK 100.6m. Depreciation and amortisation 27.6 41.0 -32.6% Compared to Q1 2020, cash position Non-cash items 17.3 -3.7 -565.4% increased by DKK 1
Slide 18: Netcompany
netcompany
Slide 19: Appendix
APPENDIX
Slide 20: Working days
HIGHLIGHTS Q4 2020 Working days 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 +1 +1 +1 +1 Denmark 0 -1 +1,0 +1 +1 +1 +0,5 Norway 0,0 -1,5 +1 +1 UK 0 0 0 0 0 -1 +1 +1 +1 +1 Netherlands 0 0 -2 -1 Almost the same amount of workdays compared to 2020. Fewer workdays in Q1 and more in Q2 and Q4. 20
Slide 21: Revenue
HIGHLIGHTS Q1 2021 Revenue +22.9% 855.1 772.7 695.6 694.7 671.0 675.5 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 21
Slide 22: Adjusted EBITA
HIGHLIGHTS Q1 2021 Adjusted EBITA +31.8% 223.5 216.3 195.5 179.9 164.1 161.3 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 22
Slide 23: Average FTEs
HIGHLIGHTS Q1 2021 Average FTEs +20.3% 3,109 2,996 2,827 2,663 2,585 2,468 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 23
Slide 24: Statement of financial position
HIGHLIGHTS Q1 2021 Statement of financial position DKK million 31 March 31 March DKK million 31 March 31 March 2021 2020 2021 2020 Assets Equity and liabilities Intangible assets 2,442.0 2,525.3 Share capital 50.0 50.0 Tangible assets 141.7 145.8 Treasury shares -175.0 -175.0 Deferred tax assets 10.
Slide 25: Currency exposures Q1
HIGHLIGHTS Q4 2020 Currency exposures Q1 DKK NOK GBP EUR VND PLN Local currency, million Revenue 655.7 100.4 12.3 2.9 0.0 0.0 EBIT 190.4 13.2 0.3 -0.4 3,499.9 2.3 Net result 185.9 10.7 0.3 -0.4 2,884.7 1.6 NOK GBP EUR 80 2020 900 2020 749 2020 78 2021 890 2021 2021 76 880 748 74 870 747 72 860 70 85
Slide 26: Fair value adjustment for contingent liabilities Q1
FINANCIAL HIGHLIGHTS Q1 2021 Fair value adjustment for contingent liabilities Q1 Comments The final purchase price for the investments in the Netherlands is a combination of the results in 2020, the revenue CAGR from the 2020 to the 2022 and the adj. EBITA margin in 2022. The adjustment made on a fi
Slide 27: Free cash flow
HIGHLIGHTS Q1 2021 Free cash flow +27.8% 210.5 173.8 136.0 117.4 115.0 75.7 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 * Tax normalised 27
Slide 28: Cash conversion rate
HIGHLIGHTS Q1 2021 Cash conversion rate -8.5% 120.9% 110.6% 103.0% 80.7% 77.8% 65.4% Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 * Tax normalised & without the fair value adjustment for contingent liabilities 28
Slide 29: Work in progress overview
ACTUAL FINANCIALS Q1 2021 Work in progress overview Work in progress compared to revenue Comments Work in progress increased by 39.1% to DKK 498.4 in Q1 2021. DKK million +17.5% Revenue increased by 22.9% to DKK 3,000 855.1m in Q1 2021 WIP Revenue +22.9% Revenue for the last twelve months increased
Slide 30: We are committed
WE ARE COMMITTED www.netcompany.com . © Copyright 2021 Netcompany. All rights reserved.