Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q1 2022 Earnings Presentation
31 slides from Netcompany Group A/s's earnings presentation, 2022
Slide 1: Netcompany Q1 22
netcompany Q1 22 © 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 2022 and our …will go through the financial guidance for 2022. performance for Q1 2022. André Rogaczewski Thomas Johansen NETCOMPANY CEO AND CO-FOUNDER NETCOMPANY CFO 3
Slide 4: Highlights Q1 2022
HIGHLIGHTS Q1 2022 Highlights Q1 2022 +60.4% +109.5% 1,371.5 +10.5% 6,513 855.1 259.4 234.8 3,109 Adjusted Revenue EBITDA Average FTEs 2020 +28.1% 2021 417.3 -8.5pp 325.7 27.5% 18.9% Adjusted Gross profit EBITDA margin 4
Slide 5: Employee development Q1 2022
HIGHLIGHTS Q1 2022 Employee development Q1 2022 #FTEs increased to 6,513 #Average attrition rate at 17.4% 3,618 251 17 65 Non-client facing March 2021 3,109 199 Freelancers March 2022 186 2,895 59 47 417 Benelux contractos 177 158 134 188 UK contractors 342 Other 35 422 445 31.8% 130 Luxembourg 95 3
Slide 6: New contracts Netcompany Core
HIGHLIGHTS Q1 2022 New contracts Netcompany Core Netcompany and the City of Oslo, Netcompany was selected as the Netcompany was selected to Netcompany was selected as Netcompany has continued and by the Development and vendor for next 2-3 years to continue to provide development, vendor on the devel
Slide 7: New contracts Netcompany-Intrasoft
HIGHLIGHTS Q1 2022 New contracts Netcompany-Intrasoft Netcompany-Intrasoft has been awarded the Single Netcompany-Intrasoft has, together with Digital Map project by the Technical Chamber of Netcompany Netherlands, undertaken a new Greece, addressing the creation of a single framework contract with
Slide 8: Status on acquisitions – Netcompany Core
HIGHLIGHTS Q1 2022 Status on acquisitions – Netcompany Core * Constant currencies (2021 rate) Norway UK Netherlands Revenue increased by 3.7% to DKK Revenue increased by 28.9% to DKK Revenue increased by 30% to DKK 75.5m. 135.4m. 28.1m. Revenue Adjusted EBITDA before allocated Adjusted EBITDA before
Slide 9: Status on the acquisition of Netcompany-Intrasoft
HIGHLIGHTS Q1 2022 Status on the acquisition of Netcompany-Intrasoft Key metrics, Q1 2022 Comments Performance was in line with expectations on topline and margins. Strong pipeline and continued wins of new engagements with the EU and Total revenue Total Adj. Total EBITA 2,895 people projects awarde
Slide 10: Revenue visibility, DKK million
HIGHLIGHTS Q1 2022 Revenue visibility, DKK million Public segment Private segment Total Netcompany Group 4,543.7 247.7 5.5% 996.6 21.9% 3,089.7 130.1 4.2% 781.7 25.3% 1,927.9 1,927.9 1,453.8 117.6 8.1% 214.9 14.8% 1,371.5 1,303.4 42.2% 624.5 43.0% 30.2% 874.6 28.3% 496.8 34.2% Revenue Contractual Co
Slide 11: Guidance 2022 - Maintained
HIGHLIGHTS Q1 2022 Guidance 2022 - Maintained Actual performance Financial metrics in constant currencies Target 2022 2021 Organic revenue growth in Netcompany Core 14-19% 17.0% Group organic revenue growth 13-18% 17.0% Non-organic revenue growth 35-38% 10.1% Group revenue growth 48-56% 27.0% Adjust
Slide 12: Financial Highlights
netcompany FINANCIAL HIGHLIGHTS
Slide 13: Highlights Q1 2022
FINANCIAL HIGHLIGHTS Q1 2022 Highlights Q1 2022 +60.4% +109.5% 1,371.5 +10.5% 6,513 855.1 259.4 234.8 3,109 Adjusted Revenue EBITDA Average FTEs Q1 2021 +28.1% Q1 2022 417.3 -8.6pp 325.7 27.5% 18.9% Adjusted Gross profit EBITDA margin 13
Slide 14: Revenue Q1 2022 – Constant currencies
FINANCIAL HIGHLIGHTS Q1 2022 Revenue Q1 2022 – Constant currencies Revenue in DKK million Comments Q1 2021 Q1 2022 Revenue increased 59.4% on Group level, driven by the acquisition of +59.4% Netcompany-Intrasoft. Organic revenue grew 12.8% and was 1,362.8 negatively impacted by a relatively high bas
Slide 15: Gross profit margin Q1 2022
FINANCIAL HIGHLIGHTS Q1 2022 Gross profit margin Q1 2022 Gross profit margin (before depreciation and amortisation) Comments Q1 2021 Q1 2022 Gross margin decreased by 7.4 percentage points to 31.4% against 38.8% in Q1 2021 of -3.4pp which 5.2% was due to the inclusion of Netcompany-Intrasoft. 43.7%
Slide 16: Adjusted EBITDA margin Q1 2022
FINANCIAL HIGHLIGHTS Q1 2022 Adjusted EBITDA margin Q1 2022 Adjusted EBITDA margin (before allocated cost from HQ) Comments Q1 2021 Q1 2022 Adjusted EBITDA margin at Group level decreased by 8.3 percentage points to 20%, -4.1pp of which 4.7 percentage points was caused 33.0% by the inclusion of Netc
Slide 17: Cashflow Q1 2022
FINANCIAL HIGHLIGHTS Q1 2022 Cashflow Q1 2022 DKK million Q1 2022 Q1 2021 change Comments Operating profit (EBIT) 194.6 207.2 -6.1% In Q1 2022, free cash flow was DKK 50.5m Depreciation and amortisation 65.2 27.6 135.9% compared to DKK 106.6m in Q1 2021, mainly Non-cash items 9.7 17.3 -44.1% driven
Slide 18: Netcompany
netcompany
Slide 19: Appendix
APPENDIX
Slide 20: Income statement Q1 2022
FINANCIAL HIGHLIGHTS Q1 2022 Income statement Q1 2022 DKK million Q1 2022 Q1 2021 change Comments Revenue 1,371.5 855.1 60.4% Revenue increased by 60.4% to DKK Costs of services -954.2 -529.5 80.2% 1,371.5m in reported currencies, whereas Gross profit 417.3 325.7 28.1% organic revenue accounted for
Slide 21: Public segment Q1
FINANCIAL HIGHLIGHTS Q1 2022 Public segment Q1 DKK million Q1 2022 Q1 2022 change Comments Income Statement Revenue 874.6 502.3 74.1% Public revenue growth of 74.1% was Costs of services -641.3 -336.4 90.7% driven by Denmark, Norway, UK and the Gross profit 233.3 166.0 40.6% Netherlands, which grew
Slide 22: Private segment Q1
FINANCIAL HIGHLIGHTS Q1 2022 Private segment Q1 DKK million Q1 2022 Q1 2021 change Comments Income Statement Revenue 496.8 352.8 40.8% Growth was 40.8% for the private Costs of services -312.9 -193.1 62.0% segment, mainly driven by the Danish Gross profit 183.9 159.7 15.2% and UK operations, which g
Slide 23: Working days
HIGHLIGHTS Q1 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. 23
Slide 24: Statement of financial position
HIGHLIGHTS Q1 2022 Statement of financial position DKK million 31 March 31 March DKK million 31 March 31 March 2022 2021 2022 2021 Assets Equity and liabilities Intangible assets 3,880.8 2,442.0 Share capital 50.0 50.0 Tangible assets 319.0 141.7 Treasury shares -252.3 -175.0 Deferred tax assets 17.
Slide 25: Work in progress overview
FINANCIAL HIGHLIGHTS Q1 2022 Work in progress overview Work in progress compared to revenue Comments Work in progress increased by 60.4% to DKK 840.2m in Q1 2022. DKK million +60.4% Work in progress in Netcompany Core 1,400 was reduced by 18.3% to DKK 407m. WIP Revenue +68.6% Revenue increased by 60
Slide 26: Free cash flow
HIGHLIGHTS Q1 2022 Free cash flow 210.5 -27.1% 173.8 160.9 136.9 126.8 -49.2 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 * Tax normalised 26
Slide 27: Cash conversion rate
HIGHLIGHTS Q1 2022 Cash conversion rate -27.5% 127.9% 118.5% 110.6% 112.3% 80.2% -41.2% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 * Tax normalised & without the fair value adjustment for contingent liabilities 27
Slide 28: Equity story
HIGHLIGHTS Q1 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 29: Our markets
HIGHLIGHTS Q1 2022 Our markets 29
Slide 30: Our markets
HIGHLIGHTS Q1 2022 Our markets 30
Slide 31: www.netcompany.com
netcompany www.netcompany.com