Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q1 2023 Earnings Presentation
31 slides from Netcompany Group A/s's earnings presentation, Aug 1, 2023
Slide 1: Netcompany Q1 23
netcompany Q1 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 Q1 2023 and our …will go through the financial guidance for 2023. performance for Q1 2023. André Rogaczewski Thomas Johansen NETCOMPANY CEO AND CO-FOUNDER NETCOMPANY CFO 3
Slide 4: Highlights Q1 2023
FINANCIAL HIGHLIGHTS Q1 2023 Highlights Q1 2023 +12.3% +15.1% 1,540.2 7,497 1,371.5 -6.7% 6,513 259.6 242.1 Adjusted Revenue EBITDA Average FTEs Q1 2022 +5.5% Q1 2023 440.1 -3.2pp 417.3 18.9% 15.7% Adjusted Gross profit EBITDA margin 4
Slide 5: New contracts Netcompany Core
HIGHLIGHTS Q1 2023 New contracts Netcompany Core Netcompany has been selected as Netcompany has been selected by Netcompany has been awarded the Netcompany was selected as the Netcompany has been awarded the vendor on a multi-year application the Danish Tax Administration as contract for the next se
Slide 6: New contracts Netcompany-Intrasoft
HIGHLIGHTS Q1 2023 New contracts Netcompany-Intrasoft Netcompany-Intrasoft have signed a Netcompany-Intrasoft have entered an The Publications Office of the European Netcompany-Intrasoft have signed a contract with the Lithuanian Customs agreement with Hellenic Electricity Union selected Netcompany-
Slide 7: Employee development Q1 2023
HIGHLIGHTS Q1 2023 Employee development Q1 2023 #FTEs increased to 7,497 12 months rolling attrition rates LTM March 2022 LTM March 2023 3 months rolling Mar/Apr 2023 7,497 50 490 45.2% 45 42.6% 6,513 785 40 428 35.9% 32 35 33.1% 268 31.8% 698 498 29.0% 30 27.5% 17 143 25.2% 26.2% 199 306 25 18.7% 2
Slide 8: Guidance 2023
HIGHLIGHTS Q1 2023 Guidance 2023 Actual Actual Financial metrics in constant Target performance performance currencies 2023 Q1 2022 Group revenue growth, organic 13.7% 8-12% 14.9% Group adjusted EBITDA margin 15.7% 15-18% 20.0% Comments Netcompany realised a strong start to 2023 and maintains the ex
Slide 9: Capital Markets Day June 2023
Capital Markets Day 1 June 2023 @Netcompany’s new Corporate HQ Copenhagen Denmark 9
Slide 10: Financial Highlights
netcompany FINANCIAL HIGHLIGHTS
Slide 11: Revenue Q1 2023 – Constant currencies
FINANCIAL HIGHLIGHTS Q1 2023 Revenue Q1 2023 – Constant currencies Revenue in DKK million Comments Q1 2022 Q1 2023* Revenue increased by 13.7% on Group level, based on growth in all units despite +13.7% challenging market conditions. In Denmark, revenue grew by 6.1% and was 1,559.2 mainly driven fro
Slide 12: Gross profit margin Q1 2023
FINANCIAL HIGHLIGHTS Q1 2023 Gross profit margin Q1 2023 Gross profit margin (before depreciation and amortisation) Comments Q1 2022 Q1 2023* Gross profit margin decreased by 2.1 percentage points to 28.9% against 30.9% in Q1 2022. This was mainly driven by a lower -4.7pp margin in Denmark. 40.3% Th
Slide 13: Adjusted EBITDA margin Q1 2023
FINANCIAL HIGHLIGHTS Q1 2023 Adjusted EBITDA margin Q1 2023 Adjusted EBITDA margin (before allocated cost from HQ) Comments Q1 2022 Q1 2023* Adjusted EBITDA margin at Group level decreased by 3.3 percentage points to 16.6%, -7.3pp as a consequence of lower gross profit margin and increased administr
Slide 14: Work in progress overview
FINANCIAL HIGHLIGHTS Q1 2023 Work in progress overview Work in progress compared to revenue Comments WIP Revenue Work in progress increased by 11.3% (on a net basis) to DKK 935m in Q1 2023. DKK million +12.3% Revenue increased by 12.3% to DKK 1,540.2m 1,550 in Q1 2023. As a total, the combined work
Slide 15: Cashflow Q1 2023
FINANCIAL HIGHLIGHTS Q1 2023 Cashflow Q1 2023 Comments DKK million Q1 2023 Q1 2022 change In Q1 2023, free cash flow was DKK 141.6m compared to DKK 50.5m in Q1 2022. The Operating profit (EBIT) 163.3 194.6 -16.1% improvement was driven by better working Depreciation and amortisation 79.0 65.2 21.2%
Slide 16: Revenue visibility, DKK million
HIGHLIGHTS Q1 2023 Revenue visibility, DKK million Public segment Private segment Total Netcompany Group 4,942.1 233.1 4.7% 1,167.7 23.6% 3,408.8 120.5 3.5% 919.8 27.0% 2,001.1 40.5% 1,533.3 112.6 7.3% 1,540.2 1,343.9 39.4% 247.9 16.2% 657.2 42.9% 31.2% 1,024.6 30.1% 515.6 33.6% Revenue Contractual
Slide 17: Netcompany
netcompany
Slide 18: Appendix
APPENDIX
Slide 19: Netcompany Core
HIGHLIGHTS Q1 2023 Netcompany Core * Constant currencies (2022 rate) Denmark Norway UK Netherlands Revenue increased by 6.1% Revenue increased by 27.6% Revenue increased by 22.9% to Revenue increased by 22.1% to to DKK 769.3m. to DKK 99.6m. DKK 173.8m. DKK 34.3m. Revenue Adjusted EBITDA before Adjus
Slide 20: Netcompany-Intrasoft
HIGHLIGHTS Q1 2023 Netcompany-Intrasoft Key metrics, Q1 2023 Comments Revenue in Q1 was DKK 482.2m compared to DKK 398.5m in Q1 2022, yielding 21% revenue growth. Revenue growth was driven by strong Total revenue Total Adj. Total EBITA 3,105 client performance in all segments. DKK 482.2m EBITDA DKK
Slide 21: Income statement Q1 2023
FINANCIAL HIGHLIGHTS Q1 2023 Income statement Q1 2023 Comments DKK million Q1 2023 Q1 2022 change Revenue increased by 12.3% to DKK 1,540.2m in reported currencies, all organic Revenue 1,540.2 1,371.5 12.3% Gross profit margin decreased to 28.9% Costs of services -1,100.1 -954.2 15.3% against 30.9%
Slide 22: Public segment Q1
FINANCIAL HIGHLIGHTS Q1 2023 Public segment Q1 Comments DKK million Q1 2023 Q1 2022 change Public revenue growth of 17.1% was Income Statement driven by Netcompany UK and Netcompany-Intrasoft that realised a Revenue 1,024.6 874.6 17.1% strong growth in Q1 2023 of 34.5% and Costs of services -753.5 -
Slide 23: Private segment Q1
FINANCIAL HIGHLIGHTS Q1 2023 Private segment Q1 Comments DKK million Q1 2023 Q1 2022 change Growth was 3.8% for the private Income Statement segment, mainly driven by strong growth in both Netcompany-Intrasoft Revenue 515.6 496.8 3.8% and Netcompany Norway that realised Costs of services -346.6 -312
Slide 24: Working days
HIGHLIGHTS Q1 2023 Working days 2022 2023 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 +1 +1 Denmark 0 0 0 +2 +1 -1 -1 -1 Norway 0 0 -1 -1 -1 -1 0 0 0 0 0 UK +2 +1 -1 -1 +1 -1 Netherlands 0 -1 -1 -2 -2 +1 0 0 0 0 0 Greece -1 +1 -1 Beligum 0 0 0 0 0 -1 +1 -1 Luxemborg 0 0 0 0 0 -1 -1 Fewer working days in 2023 than in 20
Slide 25: Statement of financial position
HIGHLIGHTS Q1 2023 Statement of financial position 31 March 31 March 31 March 31 March DKK million DKK million 2023 2022 2023 2022 Assets Equity and liabilities Intangible assets 3,755.3 3,880.8 Share capital 50.0 50.0 Tangible assets 390.2 319.0 Treasury shares -186.5 -252.3 Investment in joint ven
Slide 26: Free cash flow
HIGHLIGHTS Q1 2023 Free cash flow +180.2% 323.4 221.5 182.9 141.6 134.7 50.5 7.3 -10.2 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 26
Slide 27: Cash conversion rate
HIGHLIGHTS Q1 2023 Cash conversion rate 158.3% +77.2pp 133.7% 112.5% 109.2% 78.0% 32.0% 6.6% -8.5% Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 27
Slide 28: Equity story
HIGHLIGHTS Q1 2023 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 29: Our markets
HIGHLIGHTS Q1 2023 Our markets 29
Slide 30: Our markets
HIGHLIGHTS Q1 2023 Our markets 30
Slide 31: www.netcompany.com
netcompany www.netcompany.com