XCSE:NETC ESEF Annual Report
Netcompany Group A/S (XCSE:NETC)
ESEF Annual Report
2023-06-28
For: 2023-03-31
View Original
Added on
September 23, 2026
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
netcompany
Company Announcement
Three months ended 31 March 2023
Off to a good start to the
year despite uncertain
market conditions
Q1|23
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
1
30
Summary
DKK 1,540.2m
Q
DKK 1,371.5m
Q
Conference call details
In connection with the publication of the results for Q1 2023, Netcompany will host a
conference call on 4 May 2023 at 11.00 CEST.
The conference call can be followed live via
https://netcompany-as.eventcdn.net/events/interim-report-Q1-2023
For further dial-in details please visit the company’s website; www.netcompany.com
DKK 242.1m
Q
DKK 259.6m
Q
Q
18.9%
Q
15.7%
EBITDA decreased 6.7%
EBITDA margin decreased by 3.2pp
DKK 141.6m
Q
DKK 50.5m
Q
Q
32.0%
Q
109.2%
Free cash flow increased by DKK 91m
Cash conversion ratio improved by 77.2 percentage points
Q
2.8x
Q
1.6x
Debt leverage decreased by 43.4%
7,497 FTEs
Q
6,513 FTEs
Q
Average employees increased by 984 FTEs
Revenue increased by 12.3% (constant 13.7%)
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
2
30
André Rogaczewski
NETCOMPANY CEO AND CO-FOUNDER
In Q1, we grew revenue by 13.7% and generated an EBITDA margin of 15.7% driven by strong results in the UK and
in Netcompany-Intrasoft. In addition, we increased our free cash flow by more than 180% compared to the same
period last year.
While general macro and geopolitical uncertainty remained at elevated levels during Q1 2023, we are satisfied
with a strong start to the year.
It makes me proud that we are able to continue to grow and hire outstanding talents in these times and during Q1
we reached 7,500 full time equivalents – an increase of 15% compared to the same period last year.
With our continued intake of talent, our enhanced “Go-To-Market” approach introduced at the beginning of the
year and a continued momentum in building our pipeline across our different geographies, I am confident that we
will deliver satisfactory financial results throughout 2023 and beyond.
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
3
30
Performance overview Q1
Q1 2023 Q1 2023 % change % change
DKK million
(reported) (constant)* Q1 2022 (reported) (constant)* Total 2022
Revenue 1,540.2 1,559.2 1,371.5
12.3% 13.7% 5,544.6
Cost of services -1,100.1 -1,113.7 -954.2
15.3% 16.7% -3,772.2
Gross profit
440.1 445.4 417.3 5.5% 6.7% 1,772.5
Gross profit margin
28.6% 28.6% 30.4% -1.9pp -1.9pp 32.0%
Sales and marketing costs -12.0 -11.6 -8.8
36.2% 32.2% -41.0
Administrative costs -231.2 -234.4 -181.5
27.4% 29.2% -763.9
Adjusted EBITA
196.9 199.4 227.0 -13.3% -12.2% 967.6
Adjusted EBITA margin
12.8% 12.8% 16.6% -3.8pp -3.8pp 17.5%
Other operating income / expense 0.2 0.2 0.2
-3.6% -3.6% 5.9
EBITA
197.1 199.6 227.2 -13.3% -12.2% 973.5
EBITA margin
12.8% 12.8% 16.6% -3.8pp -3.8pp 17.6%
Amortisation -33.8 -33.8 -32.6 3.5% 3.5% -134.1
Operating profit (EBIT)
163.3 165.8 194.6 -16.1% -14.8% 839.4
Operating profit margin
10.6% 10.6% 14.2% -3.6pp -3.6pp 15.1%
Net financials -29.6 -29.7 -12.4 139.0% 140.4% -77.8
Income / loss, joint venture / associates -2.7 -2.7 -4.1
65.9% 65.9%
-5.1
Profit / loss before tax
131.0 133.4 178.2 -26.5% -25.1% 756.5
Ta x -27.7 -27.9 -45.5
-39.1% -38.6%
-153.8
Effective tax rate
21.2% 20.9% 25.5% -4.4pp -4.6pp 20.3%
Net profit / loss
103.3 105.4 132.7 -22.1% -20.5% 602.8
Additional KPIs
Adjusted EBITDA 242.1 245.0 259.6 -6.7% -5.6% 1,106.2
Adjusted EBITDA margin
15.7% 15.7% 18.9% -3.2pp -3.2pp 20.0%
Free cash flow 141.6 N/A 50.5 180.2% N /A 602.7
Cash conversion rate 109.2% N /A 32.0% 77.2pp N /A 85.2%
*Constant currencies measured using average exchange rates for Q1 2022
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
4
30
ing 2022, which led to an increase of DKK
12.8m in interest costs related to the loan
obtained to finance the acquisition of In-
trasoft International A.S.
Income taxes in Q1 2023 were DKK 27.7m
compared to DKK 45.5m in the same
quarter last year and consequently the ef-
fective income tax rate was lower at 21.2%
in Q1 2023 compared to 25.5% in Q1 2022.
However, taxes for Q1 2022 were corrected
in Q2 2022. Adjusted for this, the effective
tax rates in Q1 2022 and Q1 2023 were on
the same level.
lishment costs for Netcompany’s previous
headquarter at Grønningen in Copenha-
gen. In addition, costs related to the en-
hanced “Go-To-Market” model impacted
administrative costs by around DKK 7m.
The remaining increase of administrative
costs was largely driven by the 15.1% in-
crease in FTEs in the Group.
As a consequence of the lower gross prof-
it and increased administrative costs, ad-
justed EBITA margin was 3.8 percentage
points lower at 12.8% compared to 16.6% in
the same period last year.
Amortisation was DKK 33.8m – in line with
the level of amortisation in the same peri-
od last year.
Operating profit (EBIT) was DKK 31.3m
lower than for Q1 2022 yielding a margin
of 10.6% compared to 14.2% for Q1 2022.
Net financials were negative DKK 29.6m
compared to negative DKK 12.4m for the
same period last year. The main reason
for the increased financial costs was the
increase in the interest rate level seen dur-
Reported revenue grew 12.3% (constant
13.7%) in Q1 2023 to DKK 1,540.2m, all
organic. Client facing FTEs grew 15.1%
and average FTEs in Q1 2023 amounted
to 7,497. Revenue from public segment
increased by 17.1%, whereas revenue from
private clients increased 3.8% compared
to the same period last year.
Gross profit margin was 28.6%, which was
1.9 percentage points lower than the same
period in 2022 – in line with expectations.
The lower gross profit margin was mainly
driven by lower margin in the Danish busi-
ness unit.
Sales and marketing costs were 36.2%
higher than the same period in 2022 at
DKK 12m as a result of the generally high-
er level of marketing spend realised during
2022 and continued in 2023.
Administrative costs increased by 27.4% to
DKK 231.2m in Q1 2023 corresponding to
increase of DKK 49.8m. Depreciation ac-
counted for DKK 15m of the total increase
and related to leases. The main part hereof
was related to termination and re-estab-
PERFORMANCE OVERVIEW Q1CONTINUED
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
5
30
Business Segments Q1
DKK million
Q1 2023
Constant (2022 rate)
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,559.2 769.3 482.2 173.8 99.6 34.3
Gross profit
450.1 273.5 98.3 52.6 18.8 7.0
Gross profit margin
28.9% 35.5% 20.4% 30.2% 18.9% 20.5%
Local admin costs -190.9 -107.7 -42.3 -17.7 -16.6 -6.5
Adjusted EBITDA before allocated cost from HQ
259.3 165.8 55.9 34.9 2.1 0.6
Adjusted EBITDA margin before allocated cost from HQ
16.6% 21.5% 11.6% 20.1% 2.2%
1.6%
Allocated costs from HQ -14.3 -10.2 0.0 -2.3 -1.2 -0.6
Depreciation -45.6 -28.1 -10.6 -3.3 -2.1 -1.5
Amortisation -33.8 -17.7 -9.7 -3.5 -1.9 -0.9
Other operating income / expense 0.2 0.0 0.2 0.0 0.0 0.0
EBIT
165.8 109.8 35.8 25.7 -3.0 -2.5
Client facing FTEs 7,006 2,855 3,105 554 338 154
DKK million
Q1 2022
Reported
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,371.5 725.3 398.5 141.4 78.1 28.1
Gross profit
424.3 292.2 69.1 42.9 13.4 6.8
Gross profit margin
30.9% 40.3% 17.3% 30.3% 17.1% 24.0%
Local admin costs -150.6 -82.8 -35.0 -13.9 -12.2 -6.6
Adjusted EBITDA before allocated cost from HQ
273.7 209.4 34.0 29.0 1.1 0.1
Adjusted EBITDA margin before allocated cost from HQ
20.0% 28.9% 8.5% 20.5% 1.4%
0.5%
Allocated costs from HQ -14.1 -10.2 0.0 -2.1 -1.2 -0.6
Depreciation -32.6 -17.5 -9.3 -2.6 -1.9 -1.3
Amortisation -32.6 -19.3 -6.0 -4.0 -2.4 -1.1
Other operating income / expense 0.2 0.0 0.2 0.0 0.0 0.0
EBIT
194.6 162.4 18.9 20.4 -4.4 -2.8
Client facing FTEs 6,085 2,496 2,717 459 269 143
Revenue, %
NORWAY
DENMARK
UK
NETHERLANDS
Q1 2023
INTRASOFT
Revenue, %
Q1 2022
NORWAY
DENMARK
UK
NETHERLANDS
INTRASOFT
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
6
30
Netcompany Denmark
Revenue growth in the Danish business
unit was 6.1% – driven by strong growth
in the public segment, which grew 13.1%,
whereas the private segment realised a
small decline of 3.2% in revenue growth in
the first quarter. While revenue growth in
the private segment to some extent was
negatively impacted by a somewhat more
cautious approach in respect of initiat-
ing new projects, pipeline in both public
and private segment remains intact and
growth in both segments is expected for
the full year.
Adjusted EBITDA margin was 21.5% com-
pared to 28.9 % in Q1 2022. The changed
composition of churn and costs for the en-
hanced “Go-To-Market” approach were the
main reasons for the lower margin, and in
particular the impact from the changed
composition of churn is expected to im-
pact margins negatively in Q2 2023 too.
Netcompany-Intrasoft
Revenue in Netcompany-Intrasoft grew
by 21% to DKK 482.2m in Q1 2023 – all or-
ganic.
The growth in Q1 was driven by strong
performance in the public and EU area
that grew 22% supported by equally
strong growth in the private segment that
grew 18.2%. Client facing FTEs grew 14.3%
in the first quarter of 2023.
The pipeline continues to build and
support both near-term and long-term
growth – both with the “RRF” programme
in Greece, within customs project in Eu-
rope and within the EU in general.
Adjusted EBITDA margin was 11.6% in Q1
2023 compared to 8.5% in the same peri-
od last year. The improved margin was a
result of better pricing and slightly higher
utilisation on projects across both public
and private customers.
Netcompany UK
In the UK, the strong growth momentum
observed during last year continued dur-
ing Q1 2023 and revenue grew 22.9% com-
pared to the same period last year. Growth
in Q1 2023 was driven by continued strong
performance in the public segment, which
grew by 34.5%, whereas revenue in the
private segment was on level with the
same period last year. Accordingly, client
facing FTEs grew 20.7% in Q1 2023.
Pipeline continues to build in both the
public and private segment.
Adjusted EBITDA margin was in line with
Q1 2022 at 20.1% as a result of continued
high utilisation and an effective onboard-
ing of new employees.
Netcompany Norway
Revenue growth in Netcompany Norway
was 27.6% in Q1 2023 compared to the
same period last year. As in previous quar-
ters, growth was driven by the private
segment in Norway that grew 57.7%. Rev-
enue in the public segment increased by
8.8% in Q1 2023 and thereby continuing
the gradual improvement as observed in
the public segment throughout the latter
part of 2022.
Adjusted EBITDA margin was 2.2% com-
pared to 1.4% in Q2 2022 as utilisation
improved. While margins in Norway are
still below group levels there are clear in-
dications that margins will continue to im-
prove throughout 2023. The pipeline cases
are generally growing in absolute size and
support continued growth in Norway.
Netcompany Netherlands
Revenue in the Dutch business unit grew
22.1% in Q1 2023. Growth was – in line with
previous quarters – generated in the pub-
lic segment.
Growth was driven by increased client
facing FTEs that increased by 7.1%. The
remaining growth was generated by a
combination of increased utilisation and
better project pricing. Pipeline is still pure-
ly public segment based and is accelerat-
ing with larger opportunities progressing
according to plans.
Adjusted EBITDA was 1.6% compared to
0.5% in Q1 2022. The current project port-
folio and the pipeline opportunities sup-
port continued profitable growth in the
Netherlands throughout the year and in
the years to come. As in Norway there are
clear indications that margins will continue
to improve throughout 2023.
BUSINESS SEGMENTS Q1CONTINUED
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
7
30
Netcompany measures revenue visibility
on a 12-month rolling basis, based on two
main input parameters, which are defined
as total value of committed engagements
(which is comprised of fixed price en-
gagements and service agreements), and
ongoing time and material engagements
with a high likelihood of conversion and/or
prolongation, defined as non-contractual
committed engagements.
By the beginning of April 2023, reve-
nue visibility for 2023 amounted to DKK
4,942.1m, of which contractual committed
revenue amounted to DKK 3,168.8m and
non-contractual committed engagements
amounted to DKK 233.1m, while realised
revenue in Q1 2023 amounted to DKK
1,540.2m.
Compared to Q1 2022, revenue visibility
improved by 8.8% from DKK 4,543.6m for
2022 to DKK 4,942.1m for 2023.
Revenue visibility in the public segment
amounted to DKK 3,408.8m, of which
contractual committed revenue amount-
ed to DKK 2,263.8m and non-contractual
for Netcompany-Intrasoft, DKK 1,167.7m
is expected to be released in the last nine
months of 2023 and DKK 5,715.1m is ex-
pected to be released in the period from
2024 to 2030.
Revenue visibility
committed engagements amounted to
DKK 120.5m, while realised revenue in Q1
2023 amounted to DKK 1,024.6m.
Revenue visibility in the private segment
amounted to DKK 1,533.3m, of which con-
tractual committed revenue amounted to
DKK 905.1m and non-contractual com-
mitted engagements amounted to DKK
112.6m, while realised revenue in Q1 2023
amounted to DKK 515.6m.
By the beginning of April 2023, the total
order backlog for Netcompany-Intrasoft
amounted DKK 7,364.9m mainly within
EU institutions. Of the total order backlog
Revenue Revenue Revenue
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Contractual
committed
Netcompany
Intrasoft
Contractual
committed
Netcompany
Intrasoft
Total Total Total
Public segment Private segment Total segment
Noncon-
tractual
comiitted
Non-
contractual
committed
Non-
contractual
committed
DKK million
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
8
30
Netcompany employed an average of
7,497 FTEs in Q1 2023, which was an in-
crease of 984 FTEs compared to Q1 2022
(6,513 FTEs).
The number of client facing employees for
the Group increased by 921 from 6,085 in
Q1 2022 to 7,006 in Q1 2023, while the lev-
el of non-client facing FTEs was 6.5% in Q1
2023 compared 6.6% in Q1 2022.
The attrition rate for the last twelve
months was 20%, which was an increase
of 2.6 percentage points compared to
the same period last year. However, on a
sequential basis the churn rate decreased
compared to Q4 2022. This was as ex-
pected and caused by lower churn rates in
Q1 2023 and Q4 2022 than previous year.
3 months rolling churn rates are generally
lower than the same period last year but
have increased from Q4 2022 - as expect-
ed and planned.
Employees
Average FTEs increased to 7,497 during Q1 2023
Q
Netcompany
ADMINISTRATION
FREELANCERS
UNITED KINGDOM POLAND
DENMARK
UK CONTRACTORS
VIETNAM
NETHERLANDS
NORWAY
INTRASOFT
Attrition rate
DK NOUK NL
GR
LUBE
LTM MARCH 2022
LTM MARCH 2023
3 MONTHS ROLLING
CHURN MAR/APR 2023
Q
Netcompany
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
9
30
DKK million
Not
overdue
0-30
days
30-60
days
60- 90
days
>90
days
Provi-
sion Total
Trade receivables, 31 March 2023 640.6 144.2 32.5 62.1 56.6 -19.6 916.4
Paid in the following month
176.2 71.8 20.2 9.8 10.4 0.0 288.3
% paid subsequently
27.5% 49.8% 62.2% 15.7% 18.4% 0.0% 31.5%
Trade receivables, 31 March 2022 634.8 119.1 34.2 55.1 83.1 -19.7 906.7
Paid in the following month
316.5 79.1 19.8 8.9 10.2 0.0 434.6
% paid subsequently
49.9% 66.4% 58.0% 16.2% 12.3% 0.0% 47.9%
DKK million
Not
overdue
0-30
days
30-60
days
60- 90
days
>90
days
Provi-
sion Total
Free cash flow and cash conversion rate
The Group generated a free cash flow of
DKK 141.6m in Q1 2023 compared to DKK
50.5m in Q1 2022. Free cashflow increased
despite a decrease of DKK 31.3m in EBIT.
Part of the decrease in EBIT was caused
by the development in depreciation and
amortisation, which increased by DKK
13.8m and by nature had zero effect on
the cash flow.
Normalised for taxes paid on account
1
,
the Group generated a free cash flow of
DKK 166.5m in Q1 2023 compared to DKK
126.8m in Q1 2022.
The increase was mainly driven by the
development in working capital changes,
and somewhat offset by the lower operat-
ing result before depreciation and amorti-
sation. Working capital changes improved
to DKK 14.3m in Q1 2023, from negative
DKK 64.8m in Q1 2022, mainly driven by
the development in trade receivables and
other payables compared to the same pe-
riod last year. However, the improvement
in trade receivables was partly offset by
the development in work in progress.
Cash conversion rate increased from 32%
in Q1 2022 to 109.2% in Q1 2023, mainly
driven by the increase in cash flow, but
also impacted by the lower net profit.
Normalised for the taxes paid on account
cash conversion rate increased from 80.2%
in Q1 2022 to 128.5% in Q1 2023.
Trade receivables
At 31 March 2023, trade receivables were
on level with Q1 2022. Compared to Q1
2022, trade receivables increased 1% from
DKK 916.4m to DKK 906.7m by the end
of Q1 2023. In the same period revenue
increased 12.3% from DKK 1,371.5m in Q1
2022 to DKK 1,540.2m in Q1 2023.
The lower increase in trade receivables
compared to revenue was a result of con-
tinued faster collection of receivables,
which also impacted days sales outstand-
ing positively.
Days sales outstanding decreased from
60.3 days in Q1 2022 to 54.3 days in Q1
2023.
The overdue part of trade receivables was
on level with Q1 2022. By the end of Q1
2023 it was 31.6% compared to 31.5% by
the end of Q1 2022. Compared to Q4 2022,
the overdue part of trade receivables de-
creased by 2.3 percentage points.
Trade receivables paid in the following
month amounted to DKK 288.3m in April,
of which DKK 112.2m was overdue end of
March.
Cash flow and other significant
financial positions
1
Taxes paid within the Group are, due to local tax regula-
tions, paid on account in Q1 and in Q4. To adjust for this
timing mismatch between expensed and paid corporate
income taxes the free cash flow should be viewed in a
tax normalised manner to better reflect the underlying
development in free cash flow based on operations rath-
er than impact from local tax legislation in Denmark.
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
10
30
Work in progress
At 31 March 2023, Netcompany’s work in
progress amounted to DKK 935m, rep-
resented by contract work in progress of
DKK 1,366.7m and prepayments received
from customers of DKK 431.7m. Work in
progress increased by 11.3% from DKK
840.2m in Q1 2022 to DKK 935m in Q1
2023.
In the same period revenue increased
12.3% from DKK 1,371.5m in Q1 2022 to
DKK 1,540.2m in Q1 2023.
As a total, the combined work in progress,
prebilled invoices and trade receivables in-
creased by 6% from DKK 1,746.9m end of
Q1 2022 to DKK 1,851.4m end of Q1 2023
compared to the increase in revenue by
12.3% in the same period.
Funding and liquidity
Following the re-financing completed
in May 2022, the maturity for the Group
bank loan runs to 2025 and can be pro-
longed twice by one year.
The combined committed facilities con-
stitute DKK 2,845.4m and an additional
facility of DKK 2,000m, available only for
new acquisitions. At 31 March 2023, DKK
1,725.4m of the committed lines were uti-
lised on borrowings and DKK 148.9m on
guarantees, leaving a total of DKK 2,971.1m
available in unutilised funding of which
DKK 971.1m can be utilised for normal op-
erations if needed with no additional costs
or covenants.
In addition, Netcompany-Intrasoft had
utilised DKK 337.4m on local guarantees,
having no impact on the Group facilities
except for leverage.
Including net cash balance as of 31 March
2023 of DKK 242.2m available Group
funding was DKK 1,213.3m.
In Q1 2023, Netcompany brought down
the loan with DKK 200m by two payments
of each DKK 100m.
Risk management
Please refer to the overview of risk factors
provided by the Group in the Annual Re-
port for 2022.
Capital structure
Compared to Q4 2022, debt ratio was un-
changed at 1.6x. which is fully compliant
with current covenants.
Events after the balance sheet date
To this date, no events have occurred after
the balance sheet date, which would influ-
ence the evaluation of this report.
Work in progress overview (DKK million)
Mar
Mar
Q Q
LTM
Q
LTM
DKK million
CASH FLOW AND OTHER SIGNIFICANT
FINANCIAL POSITIONS
CONTINUED
WIP NETCOMPANY
REVENUE
Q
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
11
30
Original Actual
Target performance
Financial metrics in constant currencies 2023 2022
Group revenue growth, organic 8-12% 14.9%
Group adjusted EBITDA margin
15-18% 20.0%
Netcompany realised a strong start to
2023 with revenue growth of 13.7% and
adjusted EBITDA margin of 15.7% - both
measured in constant currencies – com-
pared to full year expectations for revenue
growth of 8-12% and adjusted EBITDA of
15-18%.
Despite the strong start to the year, a high
level of uncertainty still exists – both in re-
lation to macro-economic impacts and the
continued geo-political unrest in Europe.
Hence, at this point in time, Netcompany
maintains expectations to 2023 as previ-
ously communicated.
A number of risks to our guidance were
given in connection with our Annual Re-
port for 2022.
https://www.netcompany.com/int/Inves-
tor-Relations/Annual-Report
Those risks still exist and could impact
our performance for the remaining part of
2023.
Netcompany will host a Capital Markets
Day on 1 June 2023 where Netcompany
expect to present financial midterm aspi-
rational targets to be reached by 2026.
Guidance 2023
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
12
30
Capital
Netcompany’s share capital is DKK 50m
divided into 50m shares. Netcompany
holds 393,828 treasury shares equivalent
to 0.8% of the share capital. The shares
will be used to honour the Group’s com-
mitments under its Long Term Incentive
programmes.
Share-based incentive schemes/restricted
stock units
In total, 382,801 RSUs in relation to the
share-based incentive schemes were
issued at 31 March 2023 of which 77,269
were granted to Executive Management
and 305,532 were granted to Other
Key Management Personnel and Other
Employees. The fair value of the RSUs at
grant was DKK 134.9m. The cost relat-
ed hereto is expensed over the vesting
period.
A total amount of DKK 11.5m was recog-
nised as personnel costs in the income
statement in Q1 2023. In Q1 2023, the
RSU programmes granted in 2019 were
exercised, and 71,209 treasury shares
(recognised at DKK 15.7m on equity) were
transferred from reserves to Executive
Management, Other Key Management Per-
sonnel and Other Employees part of the
RSU programme.
Additional information on the holdings of
Netcompany shares and restricted stock
units by members of the Board of Direc-
tors and Executive Management Board is
disclosed in the Remuneration Report.
Contingent purchase price / restricted
stock units
In connection with the acquisition of 100%
of the shares of QDelft B.V. (now Net-
company Netherlands) in 2019 a total of
436,322 RSUs were transferred in Febru-
ary 2023 as the final payment.
Compliance review
The Danish Business Authorities have
completed their compliance review of
Netcompany Group A/S’ Annual Reports
for 2020 and 2021 as disclosed in the An-
nual Report for 2022. Due to the outcome
of the compliance review the accounting
policies for business combinations has
been adjusted resulting in a reduction of
goodwill of DKK 120.4m, a reduction of
earn-out obligation of DKK 118.4m and
a net impact on the equity of DKK 2.1m
including the impact from remuneration
to be treated as share based payment.
The impact is not considered material for
previous periods of financial reporting and
has been updated with effect from 1 Janu-
ary 2023 with no changes to comparison
figures.
Financial Calendar
4 May 2023
Interim report for the first 3 months of
2023
16 August 2023
Interim report for the first 6 months of
2023
3 November 2023
Interim report for the first 9 months of
2023
Shareholder information
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
13
30
Today, the Board of Directors and Ex-
ecutive Management considered and
approved the interim consolidated finan-
cial statements for Netcompany Group
A/S (“Netcompany” or “the company”
and together with all its subsidiaries “the
Group”) for the period 1 January 2023 to
31 March 2023. The Q1 2023 report has not
been audited or reviewed by the compa-
ny’s independent auditors.
The interim consolidated financial state-
ments have been prepared in accordance
with IAS 34 as adopted by the EU and
additional Danish regulations for the pres-
entation of interim reports by listed com-
panies. Furthermore, the interim report
has been prepared in accordance with the
accounting policies set out in the Group’s
Annual Report for 2022, including the re-
sult of the compliance review performed
by The Danish Business Authorities.
In our opinion, the accounting policies
used are appropriate, and the overall
presentation of the interim consolidated
financial statements gives a true and fair
view of the Group’s assets, liabilities and
financial position as at 31 March 2023 and
of the results of the Group’s operations
and cash flows for the period 1 January
2023 to 31 March 2023.
We further consider that the Manage-
ment’s Review in the preceding pages
includes a true and fair account of the
development and performance of the
Group, the results for the period and the
financial position, as well as a description
of the principal risks and uncertainties
that the Group faces in accordance with
Danish disclosure requirements for listed
companies.
COPENHAGEN, 4 MAY 2023
Executive Management
André Rogaczewski
CEO
Bo Rygaard
Chairman of the Board
Åsa Riisberg
Claus Jørgensen
COO
Juha Christensen
Vice Chairman of the Board
Bart Walterus
Thomas Johansen
CFO
Board of Directors
Statement of the Board of Directors
and Executive Management
Susan Helen Cooklin
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
14
30
CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
15
30
Income statement and Statement
of comprehensive income
DKK million
Note Q1 2023 Q1 2022 Total 2022
Income statement
Revenue 1 1,540.2 1,371.5 5,544.6
Cost of services 2 -1,100.1 -954.2 -3,772.2
Gross profit
Sales and marketing costs -12.0 -8.8 -41.0
Administrative costs 3 -231.2 -181.5 -763.9
Other operating income / expense 0.2 0.2 5.9
EBITA 197.1 227.2 973.5
Amortisation -33.8 -32.6 -134.1
Operating profit (EBIT) 163.3 194.6 839.4
Financial income 4 3.9 4.9 30.3
Financial expenses 4 -33.5 -17.2 -108.1
Income / loss, joint venture / as-
sociates
-2.7 -4.1 -5.1
Profit / loss before tax
Tax on the profit for the period -27.7 -45.5 -153.8
Net profit / loss for the period
Of which
Non-controlling interest -0.3 -0.7 -0.6
Netcompany Group A/S' share
Earnings per share
Earnings per share (DKK)
5
Diluted Earnings per share (DKK)
5
DKK million
Note Q1 2023 Q1 2022 Total 2022
Statement of comprehensive in-
come
Net profit / loss for the period
Other comprehensive income
items that may be reclassified
subsequently to profit or loss:
Exchange rate adjustments on
translating foreign subsidiaries
-0.2 1.1 -8.0
Other comprehensive income
items that may not be reclassified
to profit or loss:
Actuarial profit / loss on defined
benefit plans
Other comprehensive income, net
of tax
-0.2 1.0 -7.6
Of which
Non-controlling interest -0.1 0.1 0.2
Netcompany Group A/S' share
-0.1 0.9 -7.8
Total comprehensive income
Of which
Non-controlling interest -0.4 -0.6 -0.4
Netcompany Group A/S' share
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
16
30
Statement of financial position
31 March 31 March 31 December
DKK million
Note 2023 2022 2022
Assets
Intangible assets 3,755.3 3,880.8 3,879.9
Tangible assets 390.2 319.0 332.2
Investment in joint venture 94.7 99.1 97.4
Investment in associates 8.0 7.3 8.0
Other securities and investments 1.4 1.4 1.3
Other receivables 61.6 31.9 54.9
Deferred tax assets 34.1 17.0 32.7
Total non-current assets
Trade receivables 6 916.4 906.7 1,112.0
Receivables from joint venture 7.6 10.8 10.0
Receivables from associates 16.4 16.4 16.4
Contract work in progress 7 1,366.7 1,174.0 1,114.5
Other receivables 87.6 48.7 38.3
Prepayments 116.1 126.0 124.4
Tax receivables 60.7 71.1 36.0
Total receivables 2,571.6 2,353.7 2,451.5
Cash 242.2 322.7 336.0
Total current assets 2,813.8 2,676.4 2,787.5
Assets held for sale
Total assets
31 March 31 March 31 December
DKK million
Note 2023 2022 2022
Equity and liabilities
Share capital 50.0 50.0 50.0
Treasury shares -186.5 -252.3 -313.3
Retained earnings 3,752.6 3,326.2 3,783.6
Other reserves
Equity attributable to Group
Non-controlling interest 5.8 6.2 6.2
Total equity
Borrowings 1,673.2 2,176.6 1,872.4
Lease liabilities 241.1 180.1 180.5
Pension obligations 14.5 17.2 13.8
Other payables 0.0 1.1 0.0
Deferred tax liability 110.9 132.4 111.0
Total non-current liabilities
Borrowings 45.4 59.6 47.3
Lease liabilities 87.4 79.3 85.4
Pension obligations 5.8 1.7 5.8
Prebilled invoices 7 431.7 333.8 433.5
Trade payables 282.1 196.9 265.2
Other payables 637.9 715.6 640.6
Provisions 6.9 8.5 11.6
Total current liabilities
Liabilities held for sale 0.0 0.0 0.0
Total liabilities
Total equity and liabilities
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
17
30
Cash Flow statement
DKK million
Q1 2023 Q1 2022 Total 2022
Operating profit (EBIT) 163.3 194.6 839.4
Depreciation and amortisation 79.0 65.2 272.7
Non-cash items 7.2 9.7 14.4
Working capital changes 14.3 -64.8 -59.3
Total
Income taxes paid -54.8 -123.0 -234.1
Financial income received 1.4 2.8 7.3
Financial expenses paid -20.2 -14.9 -67.3
Cash flow from operating activities
Net cash outflow on acquisition of subsidiaries 0.0 0.0 -50.0
Other investments -0.1 4.2 4.4
Capitalisation of intangible assets -29.8 -16.9 -98.0
Acquisition of intangible assets 0.0 0.0 -20.0
Acquisition of fixed assets -18.9 -2.1 -52.2
Disposals of fixed assets 0.0 0.0 0.5
Other receivables (deposits) -6.6 -5.8 -28.9
Cash flow from investment activities
-55.3 -20.6 -244.3
Payment of treasury shares 0.0 -50.3 -131.5
Proceeds from borrowings 0.5 0.0 2,182.8
Repayment of borrowings -202.5 -115.0 -2,610.0
Repayment of right of use assets -24.9 -20.8 -87.3
Cash flow from financing activities
-226.9 -186.0 -646.0
Net increase in cash and cash equivalents
-92.0 -137.1 -117.3
Cash and cash equivalents at the beginning
Effect of exchange rate changes on the balance cash held in foreign currencies -1.9 1.0 -5.4
Cash and cash equivalents at the end
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
18
30
Statement of changes in Equity
Foreign
currency Total equity, Non-
Share Treasury Share-based translation Other Retained Netcompany controlling
DKK million
capital shares remuneration subsidiaries Reserves earnings Group A/S interest Total equity
Equity at 1 January 2023
Adjustment related to previous year* 0.0 0.0 118.4 0.0 0.0 -120.4 -2.1 0.0 -2.1
Profit for the period 0.0 0.0 0.0 0.0 0.0 103.6 103.6 -0.3 103.3
Other comprehensive income 0.0 0.0 0.0 -0.1 0.0 0.0 -0.1 -0.1 -0.2
Total comprehensive income
Share-based remuneration for the period 0.0 126.8 -132.3 0.0 0.0 -0.1 -5.6 0.0 -5.6
Total transactions with owners
Equity at 31 March 2023
Equity at 1 January 2022
Profit for the period 0.0 0.0 0.0 0.0 0.0 133.4 133.4 -0.7 132.7
Other comprehensive income 0.0 0.0 0.0 0.9 0.0 0.0 0.9 0.1 1.0
Total comprehensive income
Treasury Shares for the period 0.0 -50.2 0.0 0.0 0.0 0.2 -49.9 0.0 -49.9
Share-based remuneration for the period 0.0 39.3 -32.3 0.0 0.0 1.3 8.4 0.0 8.4
Total transactions with owners
Equity at 31 March 2022
Equity at 1 January 2022
Total comprehensive income
-0.4
Total transactions with owners
Equity at 31 December 2022
*The adjustment relates to change of accounting policies for business combinations following a compliance review of the Annual
Reports for 2020 and 2021.Reference is made to note 11 regarding accounting policies and description in the 2022 Annual Report.
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
19
30
Group Denmark Intrasoft UK Norway Netherlands
DKK million
Q1 2023 Q1 2022 % change Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022
Revenue 1,024.6 874.6
17.1%
465.2 411.3 358.0 293.6 120.0 94.1 47.3 48.1 34.1 27.5
Cost of service -753.5 -641.3
17.5%
-316.9 -270.9 -285.9 -243.8 -86.0 -66.5 -37.5 -39.3 - 27.1 -20.8
Gross profit
271.1 233.3 16.2% 148.3 140.5 72.1 49.8 33.9 27.6 9.8 8.8 7.0 6.7
Gross profit margin
26.5% 26.7% -0.2pp 31.9% 34.1% 20.1% 17.0% 28.3% 29.3% 20.8% 18.3% 20.5% 24.4%
Allocated costs -151.0 -116.9
29.1%
-80.2 -56.3 -39.2 -32.3 -14.6 -11.5 -8.9 -9.0 -7. 9 -7.7
Adjusted EBITA before HQ costs 120.1 116.4 3.2% 68.1 84.1 32.8 17.4 19.3 16.1 0.9 -0.2 -0.9 -1.0
Adjusted EBITA margin before
allocated cost from HQ
11.7% 13.3% -1.6pp 14.6% 20.5% 9.2% 5.9% 16.1% 17.1% 1.9% -0.4% -2.8% -3.6%
Allocated costs from HQ -9.1 -8.9
2.8%
-6.3 -6.1 0.0 0.0 -1.6 -1.5 -0.6 -0.8 -0.6 -0.5
EBITA
111.0 107.6 3.2% 61.8 78.0 32.8 17.4 17.7 14.6 0.3 -1.0 -1.5 -1.5
EBITA margin
10.8% 12.3% -1.5pp 13.3% 19.0% 9.2% 5.9% 14.7% 15.5% 0.5% -2.1% -4.5% -5.6%
Amortisation -21.7 -21.2
2.4%
-9.8 -11.5 -7.4 -4.4 -2.6 -2.7 -1.0 -1.5 -0.9 -1.0
Operating profit
89.3 86.3 3.4% 52.0 66.5 25.4 13.0 15.1 11.9 -0.7 -2.5 -2.5 -2.6
Operating profit margin
8.7% 9.9% -1.2pp 11.2% 16.2% 7.1% 4.4% 12.6% 12.6% -1.6% -5.2% -7.3% -9.3%
Segment information
Public Q1
NOTE 1
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
20
30
Group Denmark Intrasoft UK Norway Netherlands
DKK million
Q1 2023 Q1 2022 % change Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022
Revenue 515.6 496.8
3.8%
304.1 314.0 124.0 105.0 44.7 47.3 42.6 30.0 0.3 0.6
Cost of service -346.6 -312.9
10.8%
-182.6 -168.2 -97.9 -86.7 -29.3 -32.0 -36.7 -25.4 -0.2 -0.6
Gross profit
169.0 183.9
-8.1%
121.4 145.8 26.1 18.2 15.5 15.3 5.9 4.6 0.1 0.0
Gross profit margin
32.8% 37.0% -4.3pp 39.9% 46.4% 21.1% 17.4% 34.6% 32.3% 13.9% 15.3% 28.4% 5.2%
Allocated costs -78.0 -59.3
31.5%
-50.7 -38.1 -13.6 -11.0 -5.4 -4.9 -8.2 -5.1 -0.0 -0.2
Adjusted EBITA before HQ costs
91.0 124.7
-27.0%
70.8 107.7 12.5 7.3 10.0 10.4 -2.3 -0.5 0.0 -0.2
Adjusted EBITA margin before
allocated cost from HQ
17.7% 25.1% -7.4pp 23.3% 34.3% 10.1% 6.9% 22.4% 21.9% -5.5% -1.8% 13.6% -25.6%
Allocated costs from HQ -5.1 -5.2
-1.1%
-4.0 -4.1 0.0 0.0 -0.6 -0.6 -0.6 -0.5 -0.0 -0.0
Other operating income / ex-
pense
0.2 0.2
N/A
0.0 0.0 0.2 0.2 0.0 0.0 0.0 0.0 0.0 0.0
EBITA
86.0 119.7 -28.1% 66.8 103.6 12.7 7.5 9.4 9.7 -2.9 -1.0 0.0 -0.2
EBITA margin
16.7% 24.1% -7.4pp 22.0% 33.0% 10.3% 7.1% 21.0% 20.6% -6.8% -3.3% 12.4% -27.8%
Amortisation -12.1 -11.4
5.5%
-7.9 -7.7 -2.3 -1.6 -1.0 -1.2 -0.9 -0.9 -0.0 -0.0
Operating profit
74.0 108.2 -31.6% 58.9 95.9 10.4 5.9 8.4 8.5 -3.8 -1.8 0.0 -0.2
Operating profit margin
14.3% 21.8% -7.4pp 19.4% 30.5% 8.4% 5.6% 18.9% 18.0% -8.9% -6.1% 10.6% -32.1%
Segment information
Private Q1
CONTINUED
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
21
30
Segment information related to geographical areas
CONTINUED
Q1 2023
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 779.5 174.7 169.7 148.6 90.5 82.5 38.8 55.9 1,540.2
Q1 2022
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 731.5 126.6 143.2 201.6 78.5 4.3 28.7 57.2 1,371.5
Total 2022
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 2,915.2 584.0 555.2 672.0 295.2 155.9 109.0 258.1 5,544.6
Segment information
Geographical
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
22
30
Administrative costs
Cost of services
DKK million
Q1 2023 Q1 2022 Total 2022
Cost of services -269.3 -220.8 -983.2
Salaries -826.1 -726.3 -2,764.9
Depreciation -4.7 -7.0 -24.1
Cost of services total
-1,100.1 -954.2 -3,772.2
DKK million
Q1 2023 Q1 2022 Total 2022
Administrative costs -103.4 -82.0 -369.4
Salaries -87.3 -74.0 -280.0
Depreciation -40.5 -25.5 -114.5
Administrative costs total
-231.2 -181.5 -763.9
NOTE 2
NOTE 3
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
23
30
Financial income and expenses
DKK million
Q1 2023 Q1 2022 Total 2022
Financial Income
Exchange rate adjustments 3.3 3.4 27.3
Other financial income 0.6 1.5 3.0
Financial income total
3.9 4.9 30.3
Financial expenses
Interest expense, bank loan -19.4 -6.6 -41.8
Interest expense, leasing -2.3 -1.4 -7.1
Exchange rate adjustments -9.2 -5.2 -34.7
Other financial expenses -2.7 -4.0 -16.6
Fair value adj. of contingent consideration 0.0 0.0 -7.9
Financial expenses total
-33.5 -17.2 -108.1
NOTE 4
Earnings per share
DKK million
Q1 2023 Q1 2022 Total 2022
Earnings per share - EPS (DKK) 2.10 2.71 12.27
Diluted earnings per share - EPS-D (DKK) 2.09 2.68 12.15
Profit 103.6 133.4 603.4
Average number of shares 50.0 50.0 50.0
Average number of treasury shares 0.7 0.7 0.8
Average number of shares in circulation 49.3 49.3 49.2
Average number of outstanding restricted stock units 0.3 0.5 0.5
Average number of diluted shares in circulation 49.6 49.7 49.7
NOTE 5
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
24
30
The Group is continuously conducting
individual assessments of bad debt.
If this leads to an assessment that the
Group will not be able to collect the
amount accounted for, an allowance for
bad debt is made. At 31 March 2023, the
Group recognised a provision for expect-
ed credit losses of DKK 19.6m (31 March
2022: DKK 19.7m), and no credit losses
have incurred during Q1 2023.
The credit quality of trade receivables at
31 March 2023, is considered satisfactory.
Trade receivables
NOTE 6
31 March 31 March 31 December
DKK million
2023 2022 2022
Not overdue 640.6 634.8 746.5
0-30 days overdue 144.2 119.1 224.0
31-60 days overdue 32.5 34.2 61.4
61-90 days overdue 62.1 55.1 33.4
Over 90 days overdue 56.6 83.1 63.2
Total trade receivables excl. expected credit loss
936.0 926.4 1,128.5
Expected credit loss -19.6 -19.7 -16.6
Total trade receivables
916.4 906.7 1,112.0
Contract work in progress
NOTE 7
31 March 31 March 31 December
DKK million
2023 2022 2022
Selling price of work performed on fixed price projects 4,169.7 3,925.7 3,811.9
Invoiced amount on fixed price projects -3,234.7 -3,085.5 -3,130.9
Total contract work in progress
935.0 840.2 681.0
Net value – stated on a contract-per-contract basis –
is presented in the statement of financial position as
follows:
Contract work in progress 1,366.7 1,174.0 1,114.5
Prebilled invoices -431.7 -333.8 -433.5
Total contract work in progress
935.0 840.2 681.0
Based on the current project portfolio
including monitoring of deliveries on
projects, the Group has recognised a
provision of DKK 6.9m, covering legal
claims and project related risks (DKK
8.5m).
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
25
30
Income Statement classified by function
DKK million
Q1 2023 Q1 2022 Total 2022
Income statement
Revenue 1,540.2 1,371.5 5,544.6
Cost of services, incl. depreciation and amortisation -1,100.1 -954.2 -3,772.2
Gross profit
440.1 417.3 1,772.5
Sales and marketing costs -12.0 -8.8 -41.0
Administrative costs, incl. depreciation, amortisation and special items -265.0 -214.1 -898.0
Other operating income / expense 0.2 0.2 5.9
Operating profit (EBIT)
163.3 194.6 839.4
Financial income 3.9 4.9 30.3
Financial expenses -33.5 -17.2 -108.1
Income / loss from joint venture / associates -2.7 -4.1 -5.1
Profit / loss before tax
131.0 178.2 756.5
Tax on the profit for the period
-27.7 -45.5 -153.8
Net profit / loss for the period
103.3 132.7 602.8
Depreciation and Amortisation have been presented as follows in the
income statement:
Cost of services -4.7 -7.0 -24.1
Administrative costs -74.3 -58.2 -248.5
Depreciation and amortisation
-79.0 -65.2 -272.7
NOTE 8
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
26
30
As part of its contract commitments with
customers, the Group has through its
banks provided performance guarantees
of DKK 486.2m (DKK 496.4m).
In Q1 2023, Netcompany recognised
revenue from Smarter Airports A/S of
DKK 15.4m (DKK 23.3m).
There are no collaterals provided for
the Group’s bank loan.
Related party transactions
Collateral provided and contingent liabilities
NOTE 9
NOTE 10
The annual consolidated financial state-
ments of the Group are prepared in ac-
cordance with IFRS as adopted by the
European Union. The interim consolidated
financial statements included in this Q1
2023 financial report has been prepared
in accordance with IAS 34 “Interim Fi-
nancial Reporting” as adopted by the
European Union. The accounting policies
applied are consistent with those applied
in the consolidated Annual Report for the
year ended 31 December 2022, except for
amended interpretation of IFRS 3 section
B55(a) which state that earn-out pay-
ments subject to the selling shareholders
continued employment during a specified
period of time is expensed as remunera-
tion over the period in accordance with
Accounting policies
NOTE 11
the outcome of the compliance review of
Netcompany Group A/S’ Annual Reports
for 2020 and 2021 by the Danish Business
Authorities.
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
27
30
DKK million
Q1 2023 Q1 2022 % change Total 2022
Income statement
Public revenue 1,024.6 874.6
17.1%
3,594.9
Private revenue 515.6 496.8
3.8%
1,949.7
Revenue by segments, total
1,540.2 1,371.5 12.3% 5,544.6
Development revenue 624.2 654.8
-4.7%
2,640.2
Maintenance revenue 912.7 713.9
27.8%
2,876.1
License revenue 3.2 2.7
19.1%
28.3
Revenue by types, total
1,540.2 1,371.5 12.3% 5,544.6
Organic revenue 1,540.2 972.9
12.3%
4,172.8
Non-organic revenue 0.0 398.5
-100.0%
1,371.9
Revenue by growth, total
1,540.2 1,371.5 12.3% 5,544.6
Adjusted EBITDA 242.1 259.6
-6.7%
1,106.2
EBITDA 242.3 259.8 -6.7% 1,112.1
Adjusted EBITA 196.9 227.0
-13.3%
967.6
EBITA 197.1 227.2
-13.3%
973.5
Operating profit (EBIT) 163.3 194.6
-16.1%
839.4
Net financials -29.6 -12.4 139.0% -77.8
Net profit / loss 103.3 132.7 -22.1% 602.8
Financial position
Capex -48.6 -19.1 155.2% -170.3
Total assets 7,159.1 7,032.8 1.8% 7,193.9
Equity 3,622.3 3,130.0 15.7% 3,526.9
Net increase in cash and cash equivalents -92.0 -137.1 -32.9% -117.3
Free cash flow 141.6 50.5 180.2% 602.7
Financial figures and highlights
NOTE 12
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
28
30
FINANCIAL HIGHLIGHTS AND KEY FIGURESCONTINUED
Free cash flow (tax normalised) 166.5 126.8
31.4%
642.6
Earnings per share
Earnings per share (DKK) 2.10 2.71
-22.4%
12.27
Diluted earnings per share (DKK) 2.09 2.68
-22.2%
12.15
Employees
Average number of full-time employees 7,497 6,513
15.1%
6,906
Financial ratios
Revenue growth 12.3% 60.4%
-48.1pp
52.7%
Gross profit margin 28.6% 30.4%
-1.9pp
32.0%
Adjusted EBITDA margin 15.7% 18.9%
-3.2pp
20.0%
EBITDA margin 15.7% 18.9% -3.2pp 20.1%
Adjusted EBITA margin 12.8% 16.6%
-3.8pp
17.5%
EBITA margin 12.8% 16.6%
-3.8pp
17.6%
Operating profit margin 10.6% 14.2%
-3.6pp
15.1%
Effective tax rate 21.2% 25.5%
-4.4pp
20.3%
Return on equity 3.1% 4.6%
-1.6pp
18.4%
Solvency ratio 50.6% 44.5%
6.1pp
49.0%
ROIC 2.0% 3.3%
-1.2pp
12.0%
ROIC (adjusted for Goodwill) 5.9% 10.8%
-5.0pp
36.6%
Cash conversion ratio 109.2% 32.0%
77.2pp
85.2%
Cash conversion ratio (tax normalised) 128.5% 80.2%
48.3pp
90.9%
DKK million
Q1 2023 Q1 2022 % change Total 2022
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
29
30
Formulas
Organic
revenue
=
Revenue not classified as
non-organic revenue
Non-organic
revenue
=
Revenue from acquired businesses
the first 12 months after acquisition
Organic
Growth
1
=
Organic revenue current year x 100
Revenue last year
Gross profit
margin
1,2
=
Gross profit x 100
Revenue
EBITA
1,2
= Operating profit + Amortisation
EBITA
margin
1,2
=
EBITA x 100
Revenue
Adjusted
EBITA
=
EBITA + Special items + Other
operating income
Adjusted
EBITA
margin
=
Adjusted EBITA x 100
Revenue
Capex
1,2
=
Cost spent to buy intangible and
tangible assets, excluding impact from
business acquisitions.
Cash
conversion
ratio
1,2
=
Free cash flow x 100
Net profit - Amortisation and deferred
tax of amortisation
Days sales
outstanding
1,2
=
Trade receivables x days
Revenue
Return on
equity
2
=
Net profit for the period x 100
Average equity
Return on
invested
capital
(ROIC)
1,2
=
Net profit x 100
Average invested capital
ROIC
(Adjusted for
Goodwill)
1
=
Net profit x 100
Average invested capital
– average Goodwill
Solvency
(equity ratio)
1
=
Equity x 100
Total assets
Operating
profit margin
1
=
Operating profit x 100
Revenue
EBITDA
1,2
= EBIT + Depreciation and amortisation
EBITDA
margin
=
EBITDA x 100
Revenue
Adjusted
EBITDA
=
EBITDA + Special items + Other
operating income
Adjusted
EBTIDA
margin
=
Adjusted EBITDA x 100
Revenue
EPS
1
=
Net profit - Non-controlling interest
Average outstanding shares
EPS diluted
1
=
Net profit - Non-controlling interest
Average outstanding shares
+ Diluted shares
Free cash
flow
1,2
=
Cash flow from operating activities
- Capex
1
Key figures defined according to IFRS.
2
Key figures defined according to “Recommendations &
Financial Ratios” issued by the Danish Finance Society.
Key figures and financial ratios have been compiled in accordance with the following calculation formulas.
Netcompany grew revenue by 13.7% and free cash flow by 180% in Q1 2023
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 8/2023
4 May 2023
30
30
Disclaimer
This report contains forward-looking
statements including, but not limited
to, the statements and expectations
contained in the outlook section. For-
ward-looking statements are statements
(other than statements of historical fact)
relating to future events and Netcompa-
ny’s anticipated or planned financial and
operational performance.
The words ‘may’, ‘will’, ‘will continue’,
‘should’, ‘expect’, ‘foresee’, ‘anticipate’,
‘believe’, ‘estimate’, ‘plan’, ‘predict’, ‘intend’
or variations of these words, including
negatives thereof, as well as other state-
ments regarding matters that are not
historical fact or regarding future events
or prospects, constitute forward-looking
statements.
Netcompany has based these for-
ward-looking statements on its current
views with respect to future events and
financial performance. These views in-
volve a number of risks and uncertainties,
which could cause actual results to differ
materially from those predicted in the
forward-looking statements and from
the past performance of Netcompany.
Although Netcompany believes that the
estimates and projections reflected in the
forward-looking statements are reasona-
ble, they may prove materially incorrect,
and actual results may materially differ,
e.g. as the result of risks related to the
industry in general or Netcompany in par-
ticular, including those described in Net-
company Group A/S’ Annual Report 2022
and other information made available by
Netcompany.
Factors that may affect future results
include, but are not limited to, global
and economic conditions, including cur-
rency exchange rate and interest rate
fluctuations, delay or failure of projects
related to research and/or development,
unexpected contract breaches or ter-
minations, unplanned loss of patents,
government-mandated or market-driven
price decreases for Netcompany’s prod-
ucts, introduction of competing products,
reliance on information technology, Net-
company’s ability to successfully market
current and new products, exposure to
product liability, litigation and investiga-
tions, regulatory developments, actual or
perceived failure to adhere to ethical mar-
keting practices, unexpected growth in
costs and expenses, failure to recruit and
retain the right employees, and failure to
maintain a culture of compliance.
As a result, forward-looking statements
should not be relied on as a prediction
of actual results. Netcompany undertakes
no obligation to update or revise any for-
ward-looking statements, whether as a
result of new information, future events
or otherwise, except to the extent re-
quired by law.
The Annual Report 2022 of Netcompany
Group A/S is available at our website
www.netcompany.com
About Netcompany
Netcompany delivers business critical IT
solutions and consultancy that help our
customers to achieve significant business
benefits in a digitised world. Netcompany
also helps our customers to manage and
operate IT solutions both on location and
in the cloud.