Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Shareholder Meeting (2022)
56 slides from Netcompany Group A/s's shareholder meeting presentation, 2022
Slide 1: Netcompany AGM 2022
AGM 2022 NETCOMPANY AGM 2022
Slide 2: Welcome
Welcome . 2021 has been an exciting year and the third full year as a listed company. At 31 December 2021, Share price increased Netcompany had more by 13.2% during 2021 than 15,690 registered shareholders Welcome to Netcompany’s Annual DKK 150m was Approximately 62% of General Meeting redistributed
Slide 3: Participating during the Annual General Meeting
Participating during the Annual General Meeting . In order to vote and ask questions you must join the meeting through the virtual meeting solution. Go to: https://www.netcompany.com/int/Investor-Relations/General-meetings and select the livestream link for shareholders. Login with your username and
Slide 4: Questions and comments during the Annual General Meeting
Questions and comments during the Annual General Meeting . To ask a question or give a comments during the meeting follow the instructions below • Click on the Q&A icon. • Type your question or comment into the box at the bottom of the screen. • Press ‘Send’ to submit your question. 4
Slide 5: Agenda of today
Agenda of today . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2021. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisor
Slide 6: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2021. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 7: Our Higher Purpose
. OUR HIGHER PURPOSE Sustainable, prosperous societies driven by digitisation At Netcompany, we harness the power of digitisation to help businesses and societies succeed in the digital age and ensure that we build the framework for a just, sustainable future and success in a digital world - empower
Slide 8: Our solutions help citizens throughout their life journey
OUR SOLUTIONS HELP CITIZENS THROUGHOUT THEIR LIFE JOURNEY .. and enter the job market .. .. when you need .. in a society with social support .. .. and to stay in strong institutions Unemployment benefits good health .. .. as you educate .. .. in your everyday Corporate tax reporting and income supp
Slide 9: Netcompany at a glance
NETCOMPANY Norway AT A GLANCE Netcompany is one of Europe’s fastest growing and most successful IT services Vietnam Denmark companies, leading the way in showing how digital transformation can create strong, UK sustainable societies, successful companies and better lives for us all. Our ambition is
Slide 10: Financial highlights
Financial highlights Netcompany in numbers Netcompany has in 2021 continued to grow in revenue, adjusted EBITA and employee numbers. Revenue grew 27.9%, while delivering an adjusted EBITA margin of 21.8% and a normalised cash conversion of 94.3%. Employees grew by 3,371, of which 2,864 was due to th
Slide 11: Strategy
Strategy Netcompany’s ambition is to become a market leader within IT ser- vices in Europe. To realise this ambition we have defined a strategy based on three main pillars: chy Us) Land and Utilise Export and expand in platforms implement Europe our busi- ness model Equity story Netcompany is a lead
Slide 12: Strategic wins 2021
Highlights 2021 HIGHLIGHTS 2021 Strategic wins 2021 Netcompany has been awarded the contract Netcompany is selected as Möller Mobility The Dutch Ministry for Foreign Affairs has Netcompany won a 2-year contract for regarding the new election system supporting Group’s Strategic Digitalization partner
Slide 13: Strategic wins 2021
Highlights 2021 HIGHLIGHTS 2021 Strategic wins 2021 Topdanmark and Netcompany was selected as Netcompany confirmed vendor on the development and the good cooperation over maintenance of the most central Additional tasks and projects the summer signing a new Additional work relating to and critical I
Slide 14: Employee development
Highlights 2021 Employee development . #FTEs increased to 5,417 3,310 206 23 69 Non-client facing 2,862 Average employee age 178 2,768 Freelancers mid 30s. 132 181 385 159 Benelux contractos 45 84 113 131 UK contractors 444 311 Other 361 91 Luxembourg 109 155 FTEs grew by 1,020 in 2021. 273 243 Belg
Slide 15: Status on acquisitions – Netcompany Core
Highlights 2021 Status on acquisitions – Netcompany Core * Constant currencies (2020 rate) Norway UK Netherlands Q: Revenue decreased by 26.3% to DKK Q: Revenue increased by 8% to DKK 62.8m. Q: Revenue increased by 15.3% to DKK 95.9m. 22.7m. YTD: Revenue increased by 27% to DKK YTD: Revenue increase
Slide 16: Acquisition of Intrasoft
ACQUISITION OF INTRASOFT netcompany intrasoft
Slide 17: Intrasoft at a glance
Intrasoft at a glance Geographical footprint Established in 1996 and headquartered in Luxembourg Headquarters Luxembourg (LU) Leading European IT solutions and services group with strong international presence and Development Centers expertise Athens (GR) Thessaloniki (GR) Operations in 13 countries
Slide 18: Strategic rationale for the acquisition
Strategic rationale for the acquisition Strong foothold for the digitalisation to take place in Europe next 5-10 years Leading position in EU Institutions market Added presence across European countries markets Supplementary platform offerings Expanded private sector verticals, references and compet
Slide 19: Key strategic rationale for the combination
Key strategic rationale for the combination EU Institutions European countries Private sector Platform offerings Further expansion position presence verticals Top-3 IT service provider for EU RRF being allocated to Supplementary product References in Telco, Joint platform well- EU Institutions digit
Slide 20: Netcompany-Intrasoft
Netcompany-Intrasoft o wt ‘B: sig Public sector EU institutions Private enterprises Our markets United Kingdom Norway Business segments 0.2% dtaeseeeacaneeaeenees | geuunanaeussseeessneeesensees 1.7% Addressable market share Addressable market share Netherlands Denmark 0.2% ~ Re We des ee 12.0% Addr
Slide 21: Income statement
Actual financials 2021 Income statement . DKK million DKK million 2021 2021 2020 2020 change change Comments Revenue increased by 27.9% to DKK 3,632m in reported Revenue 3,632.0 2,838.6 27.9% currencies where organic revenue accounted for 17.9 Costs of services -2,298.7 -1,683.4 36.6% percentage poi
Slide 22: Revenue type 2021
Actual financials 2021 Revenue type 2021 . Revenue split 22
Slide 23: Revenue
Actual financials 2021 Revenue . Comments Revenue in DKK million (constant currencies) Comments 2020 Revenue increased 27% on Group level, 10.1 percentage points 2021 +27.0% was non-organic related to the acquisition of Netcompany- Intrasoft. 3.605,9 Organic revenue grew 17% driven by the increase i
Slide 24: Gross profit margin
Actual financials 2021 Gross profit margin . Gross profit margin Comments 2020 2021 Gross margin decreased by 4 percentage points to 36.7% against 40.7% in 2020. The inclusion of Intrasoft diluted margin by 1.6 -3.5pp percentage points. 46.0% -4.0pp Gross profit margin in Denmark decreased due to in
Slide 25: Adjusted EBITA
Actual financials 2021 Adjusted EBITA . Adjusted EBITA margin (before allocated cost from HQ) Comments 2020 Adjusted EBITA margin at Group level decreased by 4.8 2021 percentage points to 22.9%. 1.3 percentage points was due to -3.8pp the inclusion of Netcompany Intrasoft. Norway, the Netherlands 33
Slide 26: Cashflow
Actual financials 2021 Cashflow . million DKK million 2021 2020 2020 change change Comments In 2021, free cash flow was DKK 408m compared to DKK 557m in Operating profit (EBIT) 703.8 644.9 9.1% 2020, mainly driven by the development in working capital Depreciation and amortisation 139.2 164.4 -15.3%
Slide 27: Revenue visibility, DKK million
Outlook for 2022 Revenue visibility, DKK million . Public segment Private segment Total Netcompany Group 3,824.8 358,2 9.4% 1.336,6 34.9% 2,642.9 182,0 6.9% 2.129,9 1.032,0 39.0% 1,181.9 176,3 14.9% 304,6 25.8% 55.7% 1.428,9 54.1% 701,0 59.3% Contractual Contractual Non Total Contractual Contractual
Slide 28: Guidance 2021
Outlook for 2022 Guidance 2021 Actual Updated Updated Original . Financial metrics in constant Target 2022 performance currencies target Q3 target Q3 target 2021 2021 Organic revenue growth in Netcompany Core 14-19% 17.0% ~ 18-20% ~ 18-20% ~ 15-20% Group organic revenue growth 13-18% 17.0% N/A N/A N
Slide 29: Corporate Governance
Corporate Governance . Transparency and constructive stakeholder dialogue is key to Netcompany. Corporate governance is important as it sets out the guidelines for the management. Netcompany observes the new Recommendations on Corporate Governance from December 2020 and fully complies with all 40 re
Slide 30: Annual Board – External evaluation
Annual Board – External evaluation . Annual evaluation of Board The general impression by the external consultant were that the Board works well and performance conducted in 2021. there is no current need for any additional committees currently. The evaluation was conducted with the The evaluation s
Slide 31: Diversity to further increase
Diversity to further increase . Diversity is an important factor and Netcompany recognises the value of diversity. In our management levels, we reached our goal of 13 % females in Netcompany Core. After our acquisition of Intrasoft we reached 15 % for Netcompany Group and set a target of 16 %. The t
Slide 32: ESG Key points
ESG Key points . Environment Social Governance We use technology to build and We build digital solutions to strengthen Trust is a crucial factor in all business support green sustainable solutions societies and businesses dealings We ensure a safe and healthy working We educate society and develop t
Slide 33: Environmental, Social and Governance
ESG highlights 2021 Environmental, Social and Governance . Netcompany- Target Netcompany Group Netcompany Core ESG key figures overview Unit Intrasoft* 2022 2021 2021 2021 CO2e. scope 1 (direct GHG emissions) Tons per FTE <0.12 0.10 0.05 0.48 CO2e. scope 2 (indirect GHG emissions) Tons per FTE <0.16
Slide 34: Primary markets and additional Netcompany locations
Norway Vietnam Denmark UK Poland Netherlands Belgium Luxembourg Greece Spain Primary markets Additional Netcompany locations 34
Slide 35: The Board of Directors' proposals
The Board of Directors´ proposals . The board of directors proposes that: The Annual General Meeting takes note of the Board of Director’s report on the Company’s activities in 2021. The Company’s Annual Report 2021 be approved. The net profit for the financial year ended 31 December 2021 be allocat
Slide 36: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2021. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 37: Remuneration Report
Remuneration Report . Audited Remuneration Report In line with Danish and international corporate governance guidelines Remuneration packages were put in place in connection with the IPO in 2018 and the first proposed increase for the Board of Directors in 2022 Key points of policy: • Fixed remunera
Slide 38: Remuneration elements
Remuneration elements . Remuneration BOD EM Comments Fixed fee / Fixed base salary Fee for Audit Committee, Remuneration Committee and Fee for committee work Nomination Committee work Up to 60% of fixed base salary against defined objectives and Short term based incentive targets Long term s
Slide 39: Remuneration of Executive Management
Remuneration of Executive Management 2021 . André Rogaczewski, Claus Jørgensen, Thomas Johansen, Total Executive CEO COO CFO Management +10,43% 30,580k 27,691k 9,431 9,200 1,124 938 7,648 Fixed base salary DKK 4,843k DKK 4,843k DKK 2,691k 5,764 Short Term Incentive Plan (STIP) DKK 2,906k DKK 2,906k
Slide 40: The Board of Directors' proposal
The Board of Directors’ proposal . The Board of Directors proposes the Remuneration Report 2021 be approved in the advisory voting by the General Meeting. 40
Slide 41: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2021. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 42: Remuneration of members of the Board of Directors
Remuneration of members of the Board of Directors . Changed for the first time since the IPO on 7 June 2018 Members of the Board of Direc- The Chairman of the Board of The Deputy Chairman of the tors shall receive a base fee of: Directors shall receive: Board of Directors shall receive: • DKK 450,00
Slide 43: Committee work
Committee work . Changed for the first time since the IPO on 7 June 2018 Members of the Audit Chairman of the Audit Members, including the Members, including the Committee shall receive an Committee shall receive an chairman of the chairman of the annual committee annual committee Remuneration Commi
Slide 44: The Board of Directors' proposal
The Board of Directors’ proposal . The Board of Directors proposes the described remuneration level to the Board of Directors for 2022 to be approved by the General Meeting. 44
Slide 45: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2021. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 46: Proposal to re-elect following members to the Board of Directors 1/2
Proposal to re-elect following members to the Board of Directors 1/2 . Bo Rygaard Juha Christensen Åsa Riisberg Hege Skryseth Scanes Bentley 46
Slide 47: And to elect Susan Cooklin as a new member of the Board of Directors
And to elect Susan Cooklin as a new member of the Board of Directors 2/2 . Nationality: British Born: 1960 Independence: Yes Executive Positions: Managing Director Route Services at Network Rail Infrastructure Ltd. Non-executive positions: Senior Independent Non-Executive Director at Electricity Nor
Slide 48: The Board of Directors' proposal
The Board of Directors’ proposal . The Board of Directors proposes re-election of Bo Rygaard, Juha Christensen, Scanes Bentley, Hege Skryseth, and Åsa Riisberg as Board members. In addition, the Board of Directors proposes election of Susan Cooklin as Board member. 48
Slide 49: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2021. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 50: Proposal to elect EY as Company Auditor
Proposal to elect EY as Company Auditor . The Board of Directors proposes re-election of: EY Godkendt Revisionspartnerselskab, CVR no. 30 70 02 28 50
Slide 51: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2021. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 52: Authorisation to acquire treasury shares
Any proposal submitted by the Board of Directors regarding authorisation to acquire treasury shares . No proposal has been submitted by the Board of Directors regarding treasury shares as the Board in connection with the IPO was authorized in the period until 21 May 2023 to approve the Company’s acq
Slide 53: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2021. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 54: Any proposals submitted by the Board of Directors or by shareholders
Any proposals submitted by the Board of Directors or by shareholders . The Board of Directors proposes to revise the Slight increase of the remuneration factor from 0.5 to 0.6 for the Audit Committee Chairman Remuneration Policy in order for the proposed increased remuneration for the Necessary in o
Slide 55: Agenda
Agenda . 1 The Board of Directors’ report on the Company's activities in the past financial year. 2 Presentation and approval of the Company’s audited Annual Report 2021. 3 A resolution on the distribution of profit in accordance with the adopted Annual Report. 4 Presentation of and advisory vote on
Slide 56: www.netcompany.com
netcompany www.netcompany.com