Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q2 2023 Earnings Presentation
30 slides from Netcompany Group A/s's earnings presentation, Aug 1, 2023
Slide 1: Q2 23
Q2 23 © 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 Q2 2023 and our …will go through the financial guidance for 2023. performance for Q2 2023.
Slide 4: Highlights Q2 2023
Highlights Q2 2023 Adjusted Revenue EBITDA Average FTEs Adjusted Gross profit EBITDA margin
Slide 5: New contracts Netcompany Core
New contracts Netcompany Core Netcompany UK won The Insolvency Netcompany has been selected as the Netcompany was chosen by Norlys Netcompany has entered a multi-year Netcompany is extending its Service (InsS) Core Technology preferred provider to implement Energy to support business process collabo
Slide 6: New contracts Netcompany-Intrasoft
New contracts Netcompany-Intrasoft The directorate-General for Netcompany-Intrasoft was awarded The subject of the contract is the Netcompany-Intrasoft was awarded Netcompany-Intrasoft has entered an Environment in the European the lead on the contract to transformation of the Information by Federal
Slide 7: Employee development Q2 2023
Employee development Q2 2023 #FTEs increased to 7,701 12 months rolling attrition rates LTM June 2022 7,701 7,599 LTM June 2023 483 487 3 months rolling June/July 2023 819 6,719 6,616 50 802 46.6% 46 438 433 45 270 39 269 481 724 711 40 489 35.9% 34.7% 149 30 208 146 24 203 35 316 311 30.4% 30.2% 43
Slide 8: Guidance 2023
Guidance 2023 Actual Actual Target Financial metrics in constant currencies performance performance 2023 YTD 2023 2022 Comments
Slide 9: Financial Highlights
FINANCIAL HIGHLIGHTS
Slide 10: Revenue Q2 2023 – Constant currencies
Revenue Q2 2023 – Constant currencies Revenue in DKK million Comments
Slide 11: Gross profit margin Q2 2023
Gross profit margin Q2 2023 Gross profit margin (before depreciation and amortisation) Comments
Slide 12: Adjusted EBITDA margin Q2 2023
Adjusted EBITDA margin Q2 2023 Adjusted EBITDA margin (before allocated cost from HQ) Comments
Slide 13: Work in progress overview
Work in progress overview Work in progress compared to revenue Comments
Slide 14: Cashflow Q2 2023
Cashflow Q2 2023 Comments Q2 2023 Q2 2022 change Operating profit (EBIT) 110.3 123.2 -10.5% Depreciation and amortisation 85.2 65.5 30.1% Non-cash 14.0 -6.1 N/A Working capital changes -175.4 -128.3 36.7% Cash and cash equivalents at the beginning 242.2 322.7 -24.9% Exchange changes on cash in forei
Slide 15: Revenue visibility, DKK million
Revenue visibility, DKK million Public segment Private segment Total Netcompany Group
Slide 16: Netcompany
netcompany
Slide 17: Appendix
APPENDIX
Slide 18: Netcompany Core
Netcompany Core Denmark UK Norway Netherlands Revenue Adj. EBITDA bef. HQ costs Pipeline Other comments
Slide 19: Netcompany-Intrasoft
Netcompany-Intrasoft Key metrics, Q2 2023 Comments
Slide 20: Income statement Q2 2023
Income statement Q2 2023 Comments Q2 2023 Q2 2022 change Revenue 1,493.9 1,305.8 14.4% Costs of services -1,091.1 -941.7 15.9% Sales and marketing costs -13.6 -9.5 43.0% Administrative costs -244.4 -198.5 23.1% Other operating income 0.4 -0.1 N/A Amortisation -34.9 -32.7 6.8% Net financials -34.7 -1
Slide 21: Public segment Q2
Public segment Q2 Comments Q2 2023 Q2 2022 change Revenue 1,009.1 836.9 20.6% Costs of services -747.5 -633.1 18.1% Gross profit margin 25.9% 24.4% 1.6pp Allocated costs -163.4 -130.0 25.7% Adjusted EBITA margin before allocated HQ cost 9.7% 8.8% 0.9pp Allocated cost from HQ -7.8 -8.3 -5.9% EBITA ma
Slide 22: Private segment Q2
Private segment Q2 Comments Q2 2023 Q2 2022 change Revenue 484.8 468.9 3.4% Costs of services -343.6 -308.6 11.3% Gross profit margin 29.1% 34.2% -5.1pp Allocated costs -82.6 -65.0 27.1% Adjusted EBITA margin before allocated HQ cost 12.1% 20.3% -8.2pp Allocated cost from HQ -4.2 -4.8 -11.6% Other o
Slide 23: Working days
Working days 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Denmark Norway UK Netherlands Greece Belgium Luxemborg
Slide 24: Statement of financial position
Statement of financial position 30 June 30 June 30 June 30 June 2023 2022 2023 2022 Intangible assets 3,749.2 3,867.5 Share capital 50.0 50.0 Tangible assets 792.9 309.3 Treasury shares -183.6 -302.9 Investment in joint venture 92.9 95.3 Retained earnings 3,821.1 3,416.1 Investments in associates 8.
Slide 25: Free cash flow
HIGHLIGHTS Q2 2023 Free cash flow = _ = -1,086.5% 323.4 2215 182.9 134.7 141.6 50.5 | | a —. 725 Q3 2021 4 2021 Q12022 Q2 2022 Q3 2022 Q4 2022 Q12023 Q2 2023 netcompany 25
Slide 26: Cash conversion rate
HIGHLIGHTS Q2 2023 Cash conversion rate @ 158.3% -94.6pp 133.7% 112.5% 109.2% 78.0% 32.0% | — a! -879% @3 2021 @4 2021 @12022 @2 2022 @3 2022 @4 2022 @12023 @2 2023 netcompany 26
Slide 27: Equity story
Equity story Netcompany is a leading pure play next generation Netcompany Core Netcompany Expand native IT provider
Slide 28: Our markets
HIGHLIGHTS Q2 2023 Our markets United Kingdom The UK market is the largest market in Europe and was entered in 2017 following the acquisition of Hunter Macdonald Ltd. Addressable market share 0.2% Netherlands The Dutch market is the second largest of those markets Netcompany are present in and was e
Slide 29: Our markets
HIGHLIGHTS Q2 2023 Our markets as i f| private Core addressable IT spend in Existing Markets 2021 (DKKm) w Ga « asa Total IT service market (DKK) netcompany Existing Target Markets Markets ¢ total IT services market is defined as the expected IT market spend based on market analysis conducted by the
Slide 30: www.netcompany.com
netcompany www.netcompany.com