Netcompany Group A/s · OMXCOP:NETC
Netcompany Group A/s — Q4 2024 Earnings Presentation
34 slides from Netcompany Group A/s's earnings presentation, Jan 28, 2025
Slide 1: Q4 and full year 2024
netcreery —"Q4 and full year 2024
Slide 2: Important information
Important information This presentation contains forward-looking statements including, but not limited to, the statements and expectations contained in the outlook section. Forward-looking statements are statements (other than statements of historical fact) relating to future events and Netcompany’s
Slide 3: Presenters
Presenters André Rogaczewski NETCOMPANY CEO AND CO-FOUNDER Netcompany ..Will go through the business highlights for Q4, full year 2024, and our guidance for 2025. Thomas Johansen NETCOMPANY CFO ..Will go through the financial performance for Q4 and full year 2024.
Slide 4: Highlights
HIGHLIGHTS Q4 AND FULL YEAR 2024 Highlights Q4 6,078.4 6,540.6 ry 1,678.2 Revenue ‘_ +11.9% | 1,906.2 1,703.0) Gross profit Netcompany Adjusted EBITDA Adjusted EBITDA margin +21.8% ‘ 1,097.9 901.2 +12.8% | 4 244.1 275.3 +1.0pp +2.0pp i i Average FTEs Hl 94 2023 94 2024 YTD 2023 HM y1D 2024 Reported
Slide 5: New contracts
HIGHLIGHTS Q4 AND FULL YEAR 2024 New contracts Netcompany Core Private segment, Netherlands Netcompany has been chosen as vendor for the development, implementation, and maintenance for the replacement of the primary process system at the Dutch Medicine Agency (CBG-MEB). The current system will be r
Slide 6: New contracts
HIGHLIGHTS Q4 AND FULL YEAR 2024 New contracts Netcompany-Intrasoft Public segment, Greece Netcompany-intrasoft has reached an agreement with the State Tax Inspectorate of Lithuania to develop an innovative e-services and tax administration platform. The development project is based on Netcompany’s
Slide 7: Workforce and full year 2024
HIGHLIGHTS Q4 AND FULL YEAR 2024 Workforce 04 and full year 2024 FTEs increased to 8,249 8,249 7,684 BB Non-client facing 489 ll Freelancers UK contractors 822 Vietnam 39) Poland 5264 Ml Netherlands HB Norway Hl united Kingdom Hl intrasoft ll Denmark 94 2024 94 2023 YTD 2024 YTD 2023 Netcompany Attr
Slide 8: Guidance
HIGHLIGHTS Q4 AND FULL YEAR 2024 Guidance Financial metrics in constant currencies Group revenue growth, organic Group adjusted EBITDA margin Expected ey 5%- revenue growth in 2025 1 0% Netcompany Target 2025 5-10% 16-19% Expected adjusted EBITDA margin in 2025 Actual performance 2024 7.4% 16.9% 16%
Slide 9: Financial highlights
Financial highlights
Slide 10: Revenue
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2024 Revenue Revenue in DKK million I 94 2028 Ml 94 2024* 45.1% | 1,673.1 1,582.6 i* * (" at wa 0 mh 6 al 4 wt 2 (* 1 [°| 151.4 140.3 ous 879 SS ea Denmark Intrasoft UK Norway Netherlands Group * Constant currencies (2028 rate) Netcompany Comments lM Revenue inc
Slide 11: Revenue full year 2024
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2024 Revenue ful! year 2024 Revenue in DKK million Ml yp 2023 YTD 2024* 47.4% 6,527.0 6,078.4] 47.6% +10.4% 2,872.0 2089-5 | i 2,085.8 2303.9 “8.7% | | +5,9% +34.4% 646.1 589.7 | o4¢ aa —— Denmark Intrasoft UK Norway Netherlands Group * Constant currencies (2028
Slide 12: Gross profit margin
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2024 Gross profit margin Gross profit margin (before depreciation and amortisation) MM 94 2023 HM 94 2024* -2.9pp +7.7pp 38.9% 37.9% 36.0% +5.5pp 30.2% 1 i4Po) -8.8pP one 23.4% | 22.0% 208% 19.4% - 12.0% Denmark Intrasoft UK Norway Netherlands * Constant currenc
Slide 13: Gross profit margin full year 2024
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2024 Gross profit margin full year 2024 Gross profit margin (before depreciation and amortisation) Ml YTD 2028 Hl yp 2024* +1.3pp, +14.2pp 38.5% , STK 35.5% ny 6.1 +1.9pp perp 28.3% 29.6% 25.0% 21.9% +2.4pp 21.3% 19.9% 19.3% | 1 16.0% 13.6% Denmark Intrasoft UK
Slide 14: Adjusted EBITDA margin
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2024 Adjusted EBITDA margin Adjusted EBITDA margin (before allocated cost from HQ) I 94 2028 TH 94 2024* poePe 22.4% 21.6% +5.6pp yrr, Denmark Intrasoft * Constant currencies (2028 rate) Netcompany UK Norway Netherlands +1.4pp 17.1% 15.7% Group Comments Adjusted
Slide 15: Adjusted EBITDA margin full year 2024
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2024 Adjusted EBITDA margin full year 2024 Adjusted EBITDA margin (before allocated cost from HQ) Ml yp 2023 Il yTD 2024* +2.4pp 24.6% 22.1% +2.0pp Denmark Intrasoft * Constant currencies (2028 rate) Netcompany Netherlands Comments Adjusted EBITDA margin at Grou
Slide 16: Work in progress overview
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2024 Work in progress overview Work in progress compared to revenue Mwe Ml Revenue LTM DKK million 6,600 6,400 6,200 \\ AY 537.3 a a +7.6% B Dec. 312023 Netcompany Dec. 312024 Q4 2023 LTM Q4 2024 LTM Comments work in progress decreased by 23.5% from DKK 702.5m i
Slide 17: Cash flow
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2024 Cash flow DKK million Q42024 = Q4 2028 Full year 2024 Full year 2023 Operating profit (EBIT) 193.6 165.9 785.5 578.0 Depreciation and amortisation 148 TA 304.3 322.7 Non-cash 13.3 9.8 54.5 44.2 Working capital changes 410.2 245.9 145.0 26.7 Cash flow from o
Slide 18: Revenue visibility
FINANCIAL HIGHLIGHTS Q4 AND FULL YEAR 2024 Revenue visibility Total revenue visibility for Netcompany Group Revenue cover of the guided revenue mid-point DKK million 289.2 4,895.6 css toa 2.9% 145.5 ll Private segment Tl Public segment 100.0% 90.0% 80.0% 74.4% 69.3% 68.5% 69.6% 70.0% 7 63.4% 68.9% 6
Slide 19: Appendix
Appendix
Slide 20: Netcompany Core business units
APPENDIX Q4 AND FULL YEAR 2024 Netcompany Core * Constant currencies (2023 rate) Revenue Adj. EBITDA bef. HQ costs Pipeline Other comments Netcompany fs. Denmark Revenue increased by 5.3% to DKK 770.6m. Adjusted EBITDA before allocated cost from HQ was DKK 166.2m yielding a margin of 21.6%. Pipeline
Slide 21: Netcompany-Intrasoft
APPENDIX Q4 AND FULL YEAR 2024 Netcompany-intrasoft * Constant currencies (2028 rate) Key metrics, Q4 2024 © ge « Total revenue Total Adj. Adjusted DKK 622.2m EBITDA EBITDA margin DKK 96.5m 15.5% Netcompany ae 3,696 client facing FTEs Comments lM Revenue in Q4 was DKK 622.2m compared to DKK 562.4m i
Slide 22: Income statement
APPENDIX Q4 AND FULL YEAR 2024 Income statement DKK million 4 2024 4 2023 change Revenue 1,678.2 1,582.6 6.0% Costs of services 4,189.7 -1125.0 5.8% Gross profit 488.5 457.7 6.7% Sales and marketing costs -16.0 416.1 -0.5% ‘Administrative costs -243.1 -244.9 -0.7% Adjusted EBITA 229.4 196.7 16.6% Ot
Slide 23: Public segment
APPENDIX Q4 AND FULL YEAR 2024 Public segment DKK million Q4 2024 Q4 2023 change Income Statement Revenue 4187.4 1070.9 8.0% Costs of services -840.2 “779.4 7.9% Gross profit 316.8 291.8 8.6% Gross profit margin 27.4% 27.3% 0.1pp Allocated costs -167.0 -169.9 1.7% Adjusted EBITA before allocated HQ
Slide 24: Private segment
APPENDIX Q4 AND FULL YEAR 2024 Comments Private segment 04 2024 "Private segment revenue increased 1. was driven by increased revenue in Netcompany-intrasoft. Private revenue in Netcompany-Intrasoft DKK million Q4 2024 Q4 2023 change increased by 14: Income Statement Gross profit margin was on level
Slide 25: Working days
APPENDIX Q4 AND FULL YEAR 2024 Working days Denmark Norway UK Netherlands Greece Belgium Luxembourg Netcompany ai 4 4 I I I [ : UJ 2023 Q4 ai 4 2024 Q2 Q3 +3 = = +3 | | — +2 | | = = | “ 0 — 2 0 Zz +2 “ oo Q4 25
Slide 26: Statement of financial position
APPENDIX Q4 AND FULL YEAR 2024 Statement of financial position DKK million 31 December 31 December DKK million 31 December 31 December 2024 2023 2024 2023 Assets Equity and liabilities Intangible assets 3,708.7 3,733.1 Share capital 50.0 50.0 Tangible assets 896.8 946.9 [Freasury shares pce 88.4 Ret
Slide 27: Free cash flow
APPENDIX Q4 AND FULL YEAR 2024 Free cash flow Netcompany +39.2% v 532.4 382.6 1416 148.2 145.3 100.4 = = -72.5 12028 Q2 2028 Q3 2028 Q4 2028 12024 2.2004 93 2024 Q4 2024 27
Slide 28: Cash conversion rate
APPENDIX Q4 AND FULL YEAR 2024 Cash conversion rate f -49.7pp: 431.1% i 381.4% 109.2% 93.0% 104.7% 89.5% || “ -87.9% 12028 Q2 2028 Q3 2023 Q4 2023 12024 922024 Q3 2024 Q4 2024 Netcompany 28
Slide 29: Our ambition
APPENDIX Q4 AND FULL YEAR 2024 Our ambition Empowering Europe’s responsible digitalisation with IT talents Netcompany Purpose Our purpose is to leverage our digital know-how, talents and technology to build a modern Europe that values democracy, justice, transparency, and social security, empowering
Slide 30: Equity story
APPENDIX Q4 AND FULL YEAR 2024 Equity story Leading Europe’s digital future by 2030 Netcompany’s ambition is clear and resolute: to become a market leader in IT services in Europe by 2030. This goal is underpinned by a strategic focus on expansion, innovation, and leveraging our unique delivery capa
Slide 31: Exporting and implementing our business model
Exporting and implementing our business model Our business model and methodolo- gies are integral to our success: Proven methodology ‘Our approach to developing and implement- 1g complex solutions is unique and difficult emulate, This methodology will be applied to new joint projects with acquired c
Slide 32: Business model
Business model Built to innovate Europe with responsible digitalisation Netcompany is a leading provider of next-generation IT solutions, focusing on three key elements: People, Sales & Delivery, and Execution. We create products, platforms, and solutions that ensure transpar- ent and easy access to
Slide 33: Employees by country
inwhich nployees The map indicates county we have more than Netcompany presence 8,260 ~*~ * Workforce at year-end 16.4% MH Greece 2,825 ME Denmark 2,322 MM Luxembourg 760 ll United kingdom 579 I Poland 487 I Norway 379 I Belgium 339 Vietnam 317 Netherlands 201 Others 61 Vietnam
Slide 34: Netcompany
Netcompany netcompany.com