XCSE:NETC ESEF Annual Report
Netcompany Group A/S (XCSE:NETC)
ESEF Annual Report
2023-08-29
For: 2023-06-30
View Original
Added on
September 23, 2026
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
netcompany
Company Announcement
Six months ended 30 June 2023
Continued growth
in uncertain market
conditions
Q2|23
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
1
37
Summary
Revenue increased by 14.4% (constant 15.7%)
DKK 1,493.9m
Q
DKK 1,305.8m
Q
Conference call details
In connection with the publication of the results for Q2 2023, Netcompany will host a
conference call on 16 August 2023 at 11.00 CEST.
The conference call can be followed live via
https://netcompany-as.eventcdn.net/events/interim-report-Q2-2023
For further dial-in details please visit the company’s website; www.netcompany.com
DKK 3,034.1m
YTD
DKK 2,677.2m
YTD
DKK 195.1m
Q
DKK 188.8m
Q
DKK 437.2m
YTD
DKK 448.4m
YTD
Q
14.5%
Q
YTD
YTD
13.1%
Adj. EBITDA increased 3.3%
Adj. EBITDA margin decreased by 1.4pp
16.7%
14.4%
DKK -72.5m
Q
DKK 7.3m
Q
DKK 69.1m
YTD
DKK 57.9m
YTD
Q
6.6%
Q
YTD
YTD
-87.9%
21.5%
32.6%
7,701 FTEs
Q
6,719 FTEs
Q
7,599 FTEs
YTD
6,616 FTEs
YTD
Average employees increased by 982 FTEs
Q
2.4x
Q
1.7x
Debt leverage improved by 28.7%
Cash conversion ratio was negative
Free cash flow was DKK -72.5m
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
2
37
André Rogaczewski
NETCOMPANY CEO AND CO-FOUNDER
In Q2, we grew revenue 15.7% driven by strong results in the international operation of the Group.
Netcompany Norway and Netcompany Netherlands grew 58.5% and 74.8% respectively. In addition,
Netcompany UK grew 28.9% and Netcompany-Intrasoft grew 25.1%.
As expected, the uncertain market situation, that impacted our Danish private operation in the previous
quarter, continued to impact our private segment in Q2.
Despite uncertain times we have continued to hire outstanding talent and in Q2 we have reached 7,700
full time employees – an increase of 14.6%.
During Q2, we have also seen the first indications that our enhanced “Go-To-Market” approach will lead
to new business for the Group. In addition, we continued to win new projects based on proven products
in the public segment, which makes me confident that we will achieve our ambition for this year and
our mid-term targets for 2026.
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
3
37
Performance overview Q2
Q2 2023 Q2 2023 % change % change
DKK million
(reported) (constant)* Q2 2022 (reported) (constant)*
Revenue 1,493.9 1,510.5 1,305.8
14.4% 15.7%
Cost of services -1,091.1 -1,103.3 -941.7
15.9% 17.2%
Gross profit
402.8 407.2 364.0 10.6% 11.9%
Gross profit margin
27.0% 27.0% 27.9% -0.9pp -0.9pp
Sales and marketing costs -13.6 -13.3 -9.5
43.0% 39.6%
Administrative costs -244.4 -247.3 -198.5
23.1% 24.6%
Adjusted EBITA
144.8 146.6 156.0 -7.2% -6.0%
Adjusted EBITA margin
9.7% 9.7% 11.9% -2.3pp -2.2pp
Other operating income / expense 0.4 0.4 -0.1
-447.9% -447.4%
EBITA
145.2 147.0 155.8 -6.8% -5.7%
EBITA margin
9.7% 9.7% 11.9% -2.2pp -2.2pp
Amortisation -34.9 -34.9 -32.7
6.8% 6.9%
Operating profit (EBIT)
110.3 112.1 123.2 -10.5% -9.0%
Operating profit margin
7.4% 7.4% 9.4% -2.1pp -2.0pp
Net financials -34.7 -34.9 -18.8
85.0% 85.9%
Income / loss, joint venture / associates -1.8 -1.8 -3.8
-52.4% -52.4%
Profit / loss before tax
73.8 75.4 100.6 -26.7% -25.1%
Ta x -18.6 -18.6 -15.6
18.8% 18.9%
Effective tax rate
25.2% 24.7% 15.5% 9.6pp 9.1pp
Net profit / loss
55.2 56.8 85.0 -35.1% -33.1%
Additional KPIs
Adjusted EBITDA 195.1 197.2 188.8
3.3% 4.5%
Adjusted EBITDA margin
13.1% 13.1% 14.5% -1.4pp -1.4pp
Free cash flow -72.5 N /A 7.3
-1086.5% N/A
Cash conversion rate -87.9% N /A 6.6%
-94.6pp N/A
*Constant currencies measured using average exchange rates for Q2 2022
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
4
37
Income taxes in Q2 2023 were DKK 18.6m
compared to DKK 15.6m in the same quar-
ter last year. Effective tax rate was 25.2%
compared to 15.5% for Q2 2022. Income
taxes were impacted positively (lower
taxes) in Q2 2022 as a result of a timing
effect between the quarters in 2022. Ad-
justed for this correction, the effective tax
rate was 20% in Q2 2022.
and re-establishment costs for Netcompa-
ny’s previous headquarter at Grønningen
in Copenhagen – as was the case in Q1
2023 too. In addition, costs related to the
enhanced “Go-To-Market” model impacted
administrative costs by around DKK 7m –
also in line with Q1 2023.
As a consequence of the lower gross prof-
it and increased administrative costs, ad-
justed EBITA margin was 2.3 percentage
points lower at 9.7% compared to 11.9% in
the same period last year.
Amortisation were DKK 34.9m – in line
with the level of amortisation in the same
period last year.
Operating profit (EBIT) was DKK 12.9m
lower than for Q2 2022 yielding a margin
of 7.4% compared to 9.4% for Q2 2022.
Net financials were negative DKK 34.7m
compared to negative DKK 18.8m for the
same period last year. The main reason for
the increased financial costs was the in-
crease in the interest rate level compared
to the same period last year, which led to
an increase of DKK 14m in interest costs.
PERFORMANCE OVERVIEW Q2CONTINUED
Reported revenue grew 14.4% (constant
15.7%) in Q2 2023 to DKK 1,493.9m, all or-
ganic. Client facing FTEs grew 14.9% and
total FTEs at the end of Q2 2023 amount-
ed to 7,701. Revenue from public clients
increased by 20.6%, whereas revenue from
private clients increased by 3.4% com-
pared to the same period last year.
Gross profit margin was 27%, which was
0.9 percentage point 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 43% high-
er than the same period in 2022 at DKK
13.6m as a result of the generally higher
level of marketing spend realised during
the quarter and in line with the enhanced
“Go-To-Market” approach.
Administrative costs increased by 23.1%
to DKK 244.4m in Q2 2023. Depreciation
accounted for DKK 18m of the total in-
crease of DKK 45.9m, caused by increased
depreciation related to leases. The main
part related to the movement to the new
HQ in Copenhagen including termination
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
5
37
Business Segments Q2
DKK million
Q2 2023
Constant (2022 rate)
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,510.5 693.6 524.1 172.9 88.6 31.4
Gross profit
411.6 236.0 121.0 42.4 10.8 1.4
Gross profit margin
27.3% 34.0% 23.1% 24.5% 12.1% 4.5%
Local admin costs -202.4 -110.6 -45.9 -23.6 -15.1 -7.2
Adjusted EBITDA before allocated cost from HQ
209.2 125.4 75.1 18.9 -4.4 -5.8
Adjusted EBITDA margin before allocated cost from HQ
13.9% 18.1% 14.3% 10.9% -4.9%
-18.4%
Allocated costs from HQ -12.1 -8.4 0.0 -2.1 -1.0 -0.5
Depreciation -50.6 -30.6 -13.5 -2.9 -2.1 -1.5
Amortisation -34.9 -17.3 -10.9 -3.9 -1.9 -1.0
Other operating income / expense 0.4 0.0 0.4 0.0 0.0 0.0
EBIT
112.1 69.1 51.1 10.0 -9.4 -8.8
Client facing FTEs 7,217 2,871 3,204 628 353 161
DKK million
Q2 2022
Reported
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,305.8 678.8 419.1 134.1 55.9 18.0
Gross profit
369.0 251.9 87.4 35.9 -3.5 -2.8
Gross profit margin
28.3% 37.1% 20.9% 26.8% -6.3% -15.5%
Local admin costs -167.1 -92.2 -35.3 -18.2 -13.9 -7.6
Adjusted EBITDA before allocated cost from HQ
201.9 159.8 52.2 17.7 -17.4 -10.3
Adjusted EBITDA margin before allocated cost from HQ
15.5% 23.5% 12.4% 13.2% -31.2%
-57.6%
Allocated costs from HQ -13.1 -9.5 0.0 -2.1 -1.0 -0.5
Depreciation -32.8 -17.2 -9.8 -2.6 -1.8 -1.3
Amortisation -32.7 -19.1 -6.3 -4.2 -2.1 -1.0
Other operating income / expense -0.1 0.0 -0.1 0.0 0.0 0.0
EBIT
123.2 113.9 36.0 8.8 -22.4 -13.1
Client facing FTEs 6,281 2,586 2,784 507 272 133
Revenue, %
NO
DK
UK
NL
Q2 2023
INTRASOFT
Revenue, %
Q2 2022
NO
DK
UK
NL
INTRASOFT
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
6
37
Netcompany Denmark
Revenue growth in the Danish business
unit was 2.2% driven by growth in the
public segment of 9.7%, whereas the pri-
vate segment realised a decline of 7.8% in
revenue growth in the second quarter –
following the same patterns as seen in the
first quarter of the year. Q2 2023 had one
working day less compared to last year
impacting growth negatively by 1.8 per-
centage points. Pipeline continues to de-
velop satisfactorily, however in the private
segment conversion time is prolonged due
to the critical nature of the solutions and
the continued macro economic uncertain-
ty.
As realised in Q1, the changed composi-
tion of employee churn, with a significant-
ly higher proportion of churn being forced
as opposed to voluntary, continued during
Q2 2023. The rightsizing of the pyramid
structure in Denmark is expected to be
finalised during the third quarter.
Adjusted EBITDA margin was 18.1% com-
pared to 23.5 % in Q2 2022. The higher
level of forced churn and costs for the en-
hanced “Go-To-Market” approach were the
main reasons for the lower margin. The
impact of one working day less was nega-
tive 1.4 percentage points in the quarter.
The lower margin in Q2 was in line with
expectations.
Client facing FTEs grew 11% in Q2 com-
pared to 14.4% in Q1, impacted by the
rightsizing of the pyramid structure.
Netcompany-Intrasoft
Revenue in Netcompany-Intrasoft grew
by 25.1% to DKK 524.1m in Q2 2023. The
growth in Q2 was driven by strong perfor-
mance in the public and EU area that grew
25.2% supported by equally strong growth
in the private segment that grew 24.6%.
FTEs grew 15.1% in the second quarter
of 2023. During the second quarter two
contracts were signed that included an
element of software license, related to the
products ERMIS (customs Austria) and
PERSEUS (social security Greece).
Adjusted EBITDA margin was 14.3% in Q2
2023 compared to 12.4% in the same pe-
riod last year. The improved margin was a
result of the contracts signed that includ-
ed software license. In addition, the level
of utilisation remained at the same high
level as realised in Q1 2023, which also im-
pacted margins positively.
Netcompany UK
In the UK, the strong growth momentum
observed during Q1 was continued into
Q2 and revenue grew 28.9% compared to
the same period last year. The growth was
purely generated in the public segment
where revenue grew by 42.9% - in the pri-
vate segment revenue declined 2.1%. The
strong growth in the public segment was
supported by continued strong relation-
ships with clients like NHS, HMRC, Ministry
of Defence and other large public entities
in the UK.
Adjusted EBITDA margin was slightly
lower in Q2 2023 compared to the same
period last year. The lower margin in Q2
2023 was a result of a significant increase
in hours spent on business development
and tender writing – activities that ena-
bled the UK to secure two significant con-
tracts early in Q3 – that will be supporting
continued high growth in the UK for the
years to come. Client facing FTEs grew by
23.9%.
Netcompany Norway
Revenue growth in Netcompany Nor-
way was 58.5% in Q2 2023 compared to
the same period last year. As in previous
quarters, growth was driven by the pri-
vate segment in Norway that grew 83.4%
particularly generated by one larger en-
gagement. Revenue in the public segment
increased by 42% in Q2 2023. A large part
of that growth can be attributed to the
negative impact from project adjustments
that was realised in Q2 2022 in Norway.
Adjusted EBITDA margin was negative
4.9% compared to negative 31.2% in Q2
2022.
Netcompany Netherlands
Revenue in the Dutch business unit grew
74.8% in Q2 2023 – however from a low
absolute level. Growth was – in line with
previous quarters – generated in the pub-
lic segment. Growth was driven by higher
win ratio of new larger projects and better
project pricing as projects that has his-
torically been challenging have now been
completed. Consequently, client facing
FTEs increased 21.5% – significantly lower
than revenue growth.
Adjusted EBITDA was negative 18.4%
compared to negative 57.6% in Q2 2022.
The current project portfolio and the pipe-
line opportunities support continued prof-
itable growth in the Netherlands through-
out the year and in the years to come.
BUSINESS SEGMENTS Q2CONTINUED
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
7
37
YTD 2023 YTD 2023 % change % change
DKK million
(reported) (constant)* YTD 2022 (reported) (constant)* Total 2022
Revenue 3,034.1 3,069.6 2,677.2
13.3% 14.7%
5,544.6
Cost of services -2,191.2 -2,217.0 -1,895.9
15.6% 16.9%
-3,772.2
Gross profit
842.9 852.6 781.3 7.9% 9.1% 1,772.5
Gross profit margin
27.8% 27.8% 29.2% -1.4pp -1.4pp 32.0%
Sales and marketing costs -25.6 -24.9 -18.3
39.8% 36.1%
-41.0
Administrative costs -475.6 -481.7 -380.0
25.2% 26.8%
-763.9
Adjusted EBITA
341.6 346.0 383.0 -10.8% -9.7% 967.6
Adjusted EBITA margin
11.3% 11.3% 14.3% -3.0pp -3.0pp 17.5%
Other operating income / expense 0.6 0.6 0.1
814.2% 813.3%
5.9
EBITA
342.2 346.6 383.1 -10.7% -9.5% 973.5
EBITA margin
11.3% 11.3% 14.3% -3.0pp -3.0pp 17.6%
Amortisation -68.7 -68.7 -65.3
5.2%
5.2% -134.1
Operating profit (EBIT)
273.6 277.9 317.8 -13.9% -12.5% 839.4
Operating profit margin
9.0% 9.1% 11.9% -2.9pp -2.8pp 15.1%
Net financials -64.3 -64.6 -31.1
106.5% 107.5%
-77.8
Income / loss, joint venture / associates -4.5 -4.5 -7.9
-42.9% -42.9%
-5.1
Profit / loss before tax
204.8 208.8 278.8 -26.5% -25.1% 756.5
Ta x -46.3 -46.5 -61.1
-24.3% -23.9%
-153.8
Effective tax rate
22.6% 22.3% 21.9% 0.7pp 0.4pp 20.3%
Net profit / loss
158.5 162.3 217.7 -27.2% -25.4% 602.8
Additional KPIs
Adjusted EBITDA 437.2 442.6 448.4
-2.5% -1.3%
1,106.2
Adjusted EBITDA margin
14.4% 14.4% 16.7% -2.3pp -2.3pp 20.0%
Free cash flow 69.1 N /A 57.9
19.4% N /A
602.7
Cash conversion rate 32.6% N/A 21.5%
11.0pp N/A
85.2%
*Constant currencies measured using average exchange rates for 2022
Performance overview First 6 months
Reported revenue grew 13.3% (constant
14.7%) in the first six months of 2023 to
DKK 3,034.1m, all organic. Client facing
FTEs grew 15% and the average number of
FTEs amounted to 7,599. Revenue in the
public segment grew by 18.8%, while rev-
enue in the private segment grew by 3.6%
compared to the same period last year.
Gross profit margin was 27.8%, which was
1.4 percentage points lower than the same
period in 2022 mainly caused by a lower
margin in the Danish business unit.
Adjusted EBITDA decreased by DKK
11.2m in the first six months of 2023 to
DKK 437.2m. The EBITDA margin was
14.4%, which was 2.3 percentage points
lower than the same period in 2022. The
decrease in EBITDA margin was a conse-
quense of the lower gross profit margin
and increased administrative costs.
Adjusted EBITA decreased by DKK 41.4m
in the first six months of 2023 to DKK
341.6m. The adjusted EBITA margin was
11.3%, which was 3 percentage points low-
er than the same period in 2022.
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
8
37
Business Segments First 6 months
DKK million
YTD 2023
Constant (2022 rate)
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 3,069.6 1,462.8 1,006.2 346.7 188.1 65.7
Gross profit
861.8 509.5 219.2 95.0 29.5 8.4
Gross profit margin
28.1% 34.8% 21.8% 27.4% 15.7% 12.8%
Local admin costs -393.3 -218.3 -88.2 -41.3 -31.8 -13.7
Adjusted EBITDA before allocated cost from HQ
468.5 291.2 131.0 53.7 -2.2 -5.2
Adjusted EBITDA margin before allocated cost from HQ
15.3% 19.9% 13.0% 15.5% -1.2%
-7.9%
Allocated costs from HQ -26.3 -18.6 0.0 -4.4 -2.2 -1.1
Depreciation -96.2 -58.7 -24.1 -6.2 -4.2 -3.0
Amortisation -68.7 -35.0 -20.6 -7.4 -3.8 -1.9
Other operating income / expense 0.6 0.0 0.6 0.0 0.0 0.0
EBIT
277.9 178.9 86.9 35.8 -12.4 -11.2
Client facing FTEs 7,112 2,863 3,155 591 346 158
DKK million
YTD 2022
Reported
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 2,677.2 1,404.1 817.6 275.5 133.9 46.1
Gross profit
793.3 544.1 156.5 78.9 9.8 4.0
Gross profit margin
29.6% 38.8% 19.1% 28.6% 7.3% 8.6%
Local admin costs -317.7 -175.0 -70.3 -32.1 -26.1 -14.2
Adjusted EBITDA before allocated cost from HQ
475.6 369.1 86.2 46.8 -16.3 -10.2
Adjusted EBITDA margin before allocated cost from HQ
17.8% 26.3% 10.5% 17.0% -12.2%
-22.1%
Allocated costs from HQ -27.2 -19.7 0.0 -4.2 -2.3 -1.0
Depreciation -65.4 -34.7 -19.2 -5.2 -3.7 -2.6
Amortisation -65.3 -38.4 -12.2 -8.2 -4.5 -2.0
Other operating income / expense 0.1 0.0 0.1 0.0 0.0 0.0
EBIT
317.8 276.3 54.9 29.2 -26.8 -15.9
Client facing FTEs 6,183 2,541 2,751 483 270 138
Revenue, %
NO
DK
UK
NL
YTD 2023
INTRASOFT
Revenue, %
NO
DK
UK
NL
YTD 2022
INTRASOFT
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
9
37
Netcompany Denmark
Revenue growth in the Danish business
unit was 4.2% driven by growth in the
public segment of 11.5%, whereas the pri-
vate segment realised a decline of 5.4%
in revenue in first six months of 2023. The
private segment in Denmark was nega-
tively impacted by a more cautious ap-
proach in respect of initiation new projects
in the first six months of 2023.
Adjusted EBITDA margin was 19.9% com-
pared to 26.3% in the first six months of
2022. The lower margin was an effect of
higher level of forced churn, lower utilisa-
tion in the private segment, costs related
to movement into the new corporate HQ
in Denmark and costs related to the en-
hanced “Go-To-Market” strategy during
the first half of 2023.
Depreciation increased by DKK 24m to
DKK 58.7m in the first six months of 2023,
due to increased depreciation related to
leases of which some was due to the ter-
mination of the previous HQ at Grønnin-
gen in Copenhagen.
Netcompany-Intrasoft
Revenue in Netcompany-Intrasoft grew
by 23.1% to DKK 1,006.2m in the first six
months of 2023 – all organic.
The growth was driven by strong perfor-
mance in both the public and EU area that
grew 23.6% and in the private segment
that grew 21.5%. Client facing FTEs grew
14.7% in the first six months of 2023.
The pipeline in Netcompany-Intrasoft
continues to build and is supported by
projects in Greece within the RRF-pro-
gramme, the customs project in Europe
and EU projects in general.
Adjusted EBITDA margin was 13% in the
first six months of 2023 compared to
10.5% in the same period last year. The
improvement in margin was a result of
the contracts including a software license
signed and a high level of utilisation in the
first six months of 2023.
Netcompany UK
Revenue in Netcompany UK grew by
25.8% in the first six months of 2023 to
DKK 346.7m.
The strong revenue growth in UK was
driven by the continuing growth in the
public sector in UK that grew 38.7% in the
first half of 2023 compared to the same
period last year.
Adjusted EBITDA margin was 15.5% in the
first six months of 2023, slightly lower
than in the same period the year before.
The reason for the decline in margin, was
due to increased focus on preparation of
tender material and business develop-
ment.
Netcompany Norway
Revenue growth in Netcompany Nor-
way was 40.5% in the first six months of
2023 compared to the same period last
year. The significant growth in revenue
was driven by an increase in the private
segment, that grew 68.7% in the first six
months of 2023. Revenue in the public
segment continued its gradual improve-
ment and increased by 22.4%.
Adjusted EBITDA margin was negative
1.2% compared to negative 12.2% for the
first six months of 2022. Despite that
margins in Norway were still below group
levels, there are clear indications that mar-
gins will continue to improve throughout
2023.
Netcompany Netherlands
Revenue in the Dutch business unit grew
42.6% in the first six months of 2023. The
strong revenue growth in the Dutch busi-
ness unit was solely driven by the public
sector. Growth was driven by increased
utilisation and better pricing.
Adjusted EBITDA was negative 7.9% com-
pared to negative 22.1% in the first six
months of 2022. As in Norway there are
clear indications, that margins in the Neth-
erlands will continue to improve through-
out 2023.
BUSINESS SEGMENTS FIRST 6 MONTHSCONTINUED
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
10
37
Revenue visibility
Netcompany measures revenue visibility
on a 12 months rolling basis, based on two
main input parameters, which are defined
as the total value of committed engage-
ments (which is comprised of fixed price
engagements and service agreements),
and ongoing time and material engage-
ments with a high likelihood of conversion
and/or prolongation, defined as non-con-
tractual committed engagements.
By the beginning of July 2023, revenue
visibility for 2023 amounted to DKK
5,476.3m, of which contractual committed
revenue amounted to DKK 2,289.1m and
non-contractual committed engagements
amounted to DKK 153.1m, while realised
revenue in the first six months of 2023
amounted to DKK 3,034.1m.
Compared to Q2 2022, revenue visibility
improved by 10% from DKK 4,976.7m for
2022 to DKK 5,476.3m for 2023.
Revenue visibility in the public segment
for 2023 amounted to DKK 3,747.7m, of
which contractual committed revenue
amounted to DKK 1,634.8m and non-con-
amounted to DKK 7,508.3m mainly within
EU institutions. Of the total order backlog
for Netcompany-Intrasoft DKK 853.9m
is expected to be released in the last six
month of 2023 and DKK 6,654.4m is ex-
pected to be released in the period from
2024 and 2030.
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
DKK million
tractual committed engagements amount-
ed to DKK 79.3m, while realised revenue
amounted to DKK 2,033.6m in the first six
months.
Revenue visibility in the private segment
for 2023 amounted to DKK 1,728.6m, of
which contractual committed revenue
amounted to DKK 654.4m and non-con-
tractual committed engagements amount-
ed to DKK 73.8m, while realised revenue
amounted to 1,000.4m in the first six
months.
By the beginning of July 2023, the total
order backlog for Netcompany-Intrasoft
Non-
contractual
committed
Non-
contractual
committed
Non-
contractual
committed
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
11
37
Employees
Netcompany employed an average of
7,701 FTEs in Q2 2023, which was an in-
crease of 982 FTEs compared to Q2 2022
(6,719 FTEs).
The number of client facing employees
for the Group increased by 936 from 6,281
in Q2 2022 to 7,217 in Q2 2023, while the
level of non-client facing employees was
6.3% in Q2 2023 compared to 6.5% in Q2
2022.
The attrition rate for the last twelve
months was 17%, which was a decrease
of 7 percentage points compared to the
same period last year. On a sequential ba-
sis the churn rate decreased compared to
Q1 2023 and Q4 2022.
3 months rolling churn rates have overall
been declining during Q2 2023 and have
been significantly lower in the UK, Norway
and Greece. It is expected that churn rates
will normalise throughout the Group dur-
ing the second half of 2023.
Avg. FTEs increased to 7,701 during Q2 2023
YTD
Attrition rate
DK NO UK NL
GR LUBE
LTM JUNE 2022
LTM JUNE 2023
3 MONTHS ROLLING
CHURN JUNE/JULY 2023
YTD
Q
ADMINISTRATION
FREELANCERS
UNITED KINGDOM POLAND
DENMARK
UK CONTRACTORS
VIETNAM
NETHERLANDS
NORWAY
INTRASOFT
Q
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
12
37
Free cash flow and cash conversion rate
The Group generated a negative free cash
flow of DKK 72.5m in Q2 2023, compared
to a positive free cash flow of DKK 7.3m
in Q2 2022. The decrease was driven by
a negative development in working cap-
ital changes in Q2 2023 of DKK 47.1m
compared to Q2 2022. This was primarily
caused by net increase of work in pro-
gress. The tying up of work in progress
mainly related to operations in the public
sector in Netcompany-Intrasoft initiated
under the RRF. Additionally, investments
in fixed assets in connection with the new
HQ in Denmark and Greece impacted the
free cash flow negatively by DKK 32.3m,
while financial expenses paid increased
by DKK 22m – mainly caused by the in-
creased interest rate level.
Normalised for taxes paid on account
1
, the
Group generated a negative free cash flow
of DKK 93m in Q2 2023 compared to neg-
ative DKK 20.5m in Q2 2022.
Cash conversion rate decreased from 6.6%
in Q2 2022 to negative 87.9% in Q2 2023.
Adjusted for taxes paid on account, cash
conversion rate decreased from negative
18.9% in Q2 2022 to negative 112.8% in Q2
2023.
For the first six months, Netcompany
generated a free cash flow of DKK 69.1m
corresponding to an increase of 19.4%
compared to the same period last year,
mainly driven by improved working capital
management.
Cash conversion ratio increased from
21.5% in the first six month of 2022 to
32.6% in the first six month of 2023.
Trade receivables
At the end of Q2 2023, trade receivables
were on level with Q2 2022. Compared to
Q2 2022, trade receivables increased by
1.5% from 1,095,7m to DKK 1,112.3m by the
end of Q2 2023. In the same period reve-
nue increased 14.4%.
The lower increase in trade receivables
compared to revenue was a result of con-
tinued faster collection of receivables. As
a result, days sales outstanding improved
by 9 days from 77 days in Q2 2022 to 68
days in Q2 2023.
The overdue part of trade receivables
improved by 4 percentage points from
39.7% by the end of Q2 2022 to 35.7% by
the end of Q2 2023. However, trade re-
ceivables overdue by more than 90 days
increased by 27.8% from DKK 82.1m to
DKK 104.9m compared to the same pe-
riod last year, mainly due to elections in
Greece postponing payments.
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.
DKK million
Not
overdue
0-30
days
30-60
days
60- 90
days
>90
days
Provi-
sion
Total
Trade receivables, 30 June 2023 726.8 203.6 67.4 26.8 104.9 -17.3 1,112.3
Paid in the following month
295.6 152.6 57.5 11.9 19.2 0.0 536.7
% paid subsequently
40.7% 74.9% 85.3% 44.6% 18.3% 0.0% 48.3%
Trade receivables, 30 June 2022 672.6 209.6 91.6 60.2 82.1 -20.4 1,095.7
Paid in the following month
232.4 180.5 25.6 29.5 8.1 0.0 476.1
% paid subsequently
34.6% 86.1% 27.9% 49.0% 9.8% 0.0% 43.5%
DKK million
Not
overdue
0-30
days
30-60
days
60- 90
days
>90
days
Provi-
sion Total
Trade receivables paid in the following
month amounted to DKK 536.7m in July,
of which DKK 241.2m was overdue end of
June, equal to a repayment of 48.3% of
the total balance compared to 43.5% last
year.
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
13
37
CASH FLOW AND OTHER SIGNIFICANT
FINANCIAL POSITIONS
CONTINUED
runs to 2026. The loan can be prolonged
further by one year.
The combined committed facilities con-
stitute DKK 2,842.5m and an additional
facility of DKK 2,000m, available only for
new acquisitions. At 30 June 2023, DKK
1,622.5m of the committed lines were
utilised on borrowings and DKK 148.9m on
guarantees, leaving a total of DKK 3,071.1m
available in unutilised funding of which
DKK 1,071.1m can be utilised for normal
operations if needed with no additional
costs or covenants. In addition, Netcom-
pany-Intrasoft had utilised DKK 418.9m on
local guarantees, having no impact on the
Group facilities except for leverage.
Including net cash balance as of 30 June
2023 of DKK 36.7m available Group
funding was DKK 1,107.8m.
In Q2 2023, Netcompany repaid DKK
100m of the bank loan. In total, Netcom-
pany repaid DKK 300m of the bank loan
in the first half of 2023.
Work in progress
At 30 June 2023, Netcompany’s work in
progress amounted to DKK 988.4, rep-
resented by contract work in progress of
DKK 1,444.8m and prepayments received
from customers of DKK 456.4m.
Work in progress increased by 28.2% from
DKK 771.2m in Q2 2022 to DKK 988.4m
in Q2 2023. In the same period revenue
increased 14.4%, whereas revenue in the
prevailing 12 months (LTM) increased by
27.5%. As work in progress is typically held
on Netcompany balance sheet for more
than one quarter it is more reasonable
to compare the development in work in
progress with the LTM revenue growth.
In that aspect growth in work in progress
and revenue was balanced.
Funding and liquidity
Originally, the maturity of the Group bank
loan expired in 2025. In April 2023, the
loan was prolonged by one year and now
Work in progress overview (DKK million)
Jun
Q
Q
LTM
WIP
REVENUE
Jun
Q
Q
LTM
Risk management
Please refer to the overview of risk factors
provided by the Group in the Annual Re-
port for 2022.
Capital structure
In Q2 2023, debt ratio was 1.7x compared
to 2.4x in Q2 2022. All covenants are com-
plied with.
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.
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
14
37
Despite negative macro environment
impacts on the Danish private segment,
Netcompany realised a good start to 2023
with revenue growth of 14.7% and adjusted
EBITDA margin of 14.4% for the first six
months - both measured in constant cur-
rencies.
While there are certain indicators sug-
gesting that the macro environment will
stabilise in the second half of 2023, the
prolonged conversion time of pipeline cas-
es in the private segment in Denmark is
expected to prevail during the second half
of 2023 too, and a high level of uncertainty
still exists.
Hence, Netcompany maintains expecta-
tions to 2023 as previously communicated.
A number of risks to our guidance was giv-
en in connection with our Annual Report
for 2022. Those risks still exist and could
impact our performance for the remaining
part of 2023.
Netcompany presented mid-term targets
on 1 June to be achieved by the end of
2026. These targets are as follows:
• Revenue of at least DKK 8.5bn
• Adjusted EBITDA margin of at least
20%.
• Cash redistribution to shareholders of
at least DKK 2bn.
Guidance 2023
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 maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
15
37
Capital
Netcompany’s share capital is DKK 50m
divided into 50m shares. Netcompany
holds 389,494 treasury shares equivalent
to 0.8% of the share capital. The shares
will be used to honor the Group’s com-
mitments under its Long-Term Incentive
programs.
Share-based incentive schemes/restricted
stock units
In total, 400,772
RSUs in relation to the
share-based incentive schemes were
issued at 30 June 2023 of which 101,269
were granted to Executive Management
and
299,503 were granted to Other Key
Management Personnel and Other Em-
ployees.
The fair value of the RSUs at grant was
DKK 139m. The cost related hereto is
expensed over the vesting period. A total
amount of DKK 11.2m was recognised as
personnel costs in the income statement
in Q2 2023.
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.
Acquisition of Netcompany shares related
to the acquisition of Intrasoft International
S.A.
As part of the acquisition of Intrasoft In-
ternational S.A, an agreement was made
for a senior executive to convert the re-
ceived cash element of the purchase price
into Netcompany shares entailing certain
possibilities to sell shares in predefined
tranches at the prevailing share price of
the time of the transaction.
The last option was exercised in relation to
this tranche and executed on 3 July 2023.
Netcompany has in that capacity acquired
44,539 treasury shares directly from the
senior executive.
Compliance Review
The Danish Business Authorities have
completed their compliance review of Net-
company Group A/S’ Annual Reports for
2020 and 2021 as disclosed in the Annual
Report for 2022.
Due to the outcome of the compliance re-
view 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
January 2023 with no changes to compar-
ison figures.
Shareholder information
Financial Calendar
16 August 2023
Interim report for the first 6 months of
2023
3 November 2023
Interim report for the first 9 months of
2023
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
16
37
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
30 June 2023. The Q2 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.
In our opinion, the accounting policies
used are appropriate, and the overall pres-
entation of the interim consolidated finan-
cial statements gives a true and fair view
of the Group’s assets, liabilities and finan-
cial position as at 30 June 2023 and of the
results of the Group’s operations and cash
flows for the period 1 January 2023 to 30
June 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, 16 AUGUST 2023
Executive Management
André Rogaczewski
CEO
Bo Rygaard
Chairman of the Board
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
Åsa Riisberg
Susan Helen Cooklin
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
17
37
CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
18
37
Income statement and Statement
of comprehensive income
DKK million
Note Q2 2023 Q2 2022 YTD 2023 YTD 2022 Total 2022
Income statement
Revenue 1 1,493.9 1,305.8 3,034.1 2,677.2 5,544.6
Cost of services 2 -1,091.1 -941.7 -2,191.2 -1,895.9 -3,772.2
Gross profit
Sales and marketing costs -13.6 -9.5 -25.6 -18.3 -41.0
Administrative costs 3 -244.4 -198.5 -475.6 -380.0 -763.9
Other operating income / expense 0.4 -0.1 0.6 0.1 5.9
EBITA
Amortisation -34.9 -32.7 -68.7 -65.3 -134.1
Operating profit (EBIT)
Financial income 4 5.0 3.5 8.9 8.4 30.3
Financial expenses 4 -39.7 -22.3 -73.2 -39.5 -108.1
Income / loss, joint venture / associates -1.8 -3.8 -4.5 -7.9 -5.1
Profit / loss before tax
Tax on the profit for the period -18.6 -15.6 -46.3 -61.1 -153.8
Net profit / loss for the period
Of which
Non-controlling interest 0.3 0.3 -0.0 -0.4 -0.6
Netcompany Group A/S' share
Earnings per share
Earnings per share (DKK) 5 1.11 1.72 3.20 4.43 12.26
Diluted Earnings per share (DKK) 5 1.10 1.70 3.18 4.38 12.15
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
19
37
Statement of comprehensive income
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 4.9 -3.0 4.7 -1.9 -8.0
Other comprehensive income items that may not be reclassified to profit
or loss:
Actuarial profit / loss on defined benefit plans 0.0 0.0 0.0 -0.0 0.4
Other comprehensive income, net of tax
Of which
Non-controlling interest -0.0 0.2 -0.1 0.4 0.2
Netcompany Group A/S' share
Total comprehensive income / loss
Of which
Non-controlling interest 0.3 0.6 -0.1 -0.0 -0.4
Netcompany Group A/S' share
DKK million
Note Q2 2023 Q2 2022 YTD 2023 YTD 2022 Total 2022
INCOME STATEMENT AND STATEMENT OF COMPREHENSIVE INCOMECONTINUED
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
20
37
Statement of financial position
Equity and liabilities
Share capital 50.0 50.0 50.0
Treasury shares -183.6 -302.9 -313.3
Retained earnings 3,820.7 3,416.1 3,783.6
Other reserves
Equity attributable to Group
Non-controlling interest 6.1 6.6 6.2
Total equity
Borrowings 1,573.9 2,173.8 1,872.4
Lease liabilities 620.0 173.6 180.5
Pension obligations 15.1 17.5 13.8
Other payables 0.0 1.0 0.0
Deferred tax liability 105.1 121.7 111.0
Total non-current liabilities
Borrowings 42.5 51.7 47.3
Lease liabilities 84.7 77.7 85.4
Pension obligations 5.8 1.7 5.8
Prebilled invoices 7 456.4 373.2 433.5
Trade payables 340.2 186.4 265.2
Other payables 8 660.2 696.7 640.6
Provisions 2.5 8.4 11.6
Total current liabilities 1,592.3 1,395.6 1,489.4
Total liabilities
Total equity and liabilities
30 June 30 June 31 December
DKK million
Note 2023 2022 2022
Assets
Intangible assets 3,749.2 3,867.5 3,879.9
Tangible assets 792.9 309.3 332.2
Investment in joint venture 92.9 95.3 97.4
Investment in associates 8.0 7.3 8.0
Other securities and invest-
ments
Other receivables 55.2 30.1 54.9
Deferred tax assets 36.2 26.2 32.7
Total non-current assets
Trade receivables 6 1,112.3 1,095.7 1,112.0
Receivables from joint venture 3.4 7.3 10.0
Receivables from associates 16.4 16.4 16.4
Contract work in progress 7 1,444.8 1,144.3 1,114.5
Other receivables 89.8 46.2 38.3
Prepayments 120.9 110.9 124.4
Tax receivables 40.1 44.5 36.0
Total receivables 2,827.7 2,465.3 2,451.5
Cash 36.7 250.6 336.0
Total current assets
Total assets
30 June 30 June 31 December
DKK million
Note 2023 2022 2022
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
21
37
Cash Flow statement
DKK million
Q2 2023 Q2 2022 YTD 2023 YTD 2022 Total 2022
Operating profit (EBIT) 110.3 123.2 273.6 317.8 839.4
Depreciation and amortisation 85.2 65.5 164.2 130.7 272.7
Non-cash items 14.0 -6.1 21.2 3.6 14.4
Working capital changes -175.4 -128.3 -161.0 -193.0 -59.3
Total
Income taxes paid -6.1 -9.5 -60.9 -132.5 -234.1
Financial income received 1.2 0.9 2.6 3.7 7.3
Financial expenses paid -28.8 -6.8 -49.1 -21.7 -67.3
Cash flow from operating activities
Net cash outflow on acquisition of subsidiaries 0.0 0.0 0.0 0.0 -50.0
Other investments 0.3 -0.2 0.3 4.0 4.4
Capitalisation of intangible assets -28.8 -19.9 -58.6 -36.9 -98.0
Acquisition of intangible assets 0.0 0.0 0.0 0.0 -20.0
Acquisition of fixed assets -44.0 -11.7 -62.9 -13.8 -52.2
Disposals of fixed assets 0.0 0.0 0.0 0.0 0.5
Other receivables (deposits) 6.7 1.9 0.1 -3.9 -28.9
Cash flow from investment activities
-65.8 -30.0 -121.1 -50.6 -244.3
Payment of treasury shares 0.0 -50.7 0.0 -101.0 -131.5
Proceeds from borrowings 0.0 2,182.8 0.5 2,182.8 2,182.8
Repayment of borrowings -102.9 -2,187.9 -305.4 -2,302.9 -2,610.0
Repayment of right of use assets -38.1 -21.3 -62.9 -42.0 -87.3
Cash flow from financing activities
-141.0 -77.0 -367.8 -263.0 -646.0
Net increase in cash and cash equivalents
-206.4 -68.0 -298.3 -205.1 -117.3
Cash and cash equivalents at the beginning 242.2 322.7 336.0 458.8 458.8
Effect of exchange rate changes on the balance cash held in foreign currencies 0.9 -4.1 -1.0 -3.2 -5.4
Cash and cash equivalents at the end 36.7 250.6 36.7 250.6 336.0
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
22
37
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 April 2023
Profit for the period 0.0 0.0 0.0 0.0 0.0 54.9 54.9 0.3 55.2
Other comprehensive income 0.0 0.0 0.0 4.9 0.0 0.0 4.9 -0.0 4.9
Total comprehensive income
Share-based remuneration for the period 0.0 2.9 9.5 0.0 0.0 -1.2 11.2 0.0 11.2
Total transactions with owners
Equity at 30 June 2023
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 0.0 158.5 158.5 -0.0 158.5
Other comprehensive income 0.0 0.0 0.0 4.8 0.0 0.0 4.8 -0.1 4.7
Total comprehensive income
Share-based remuneration for the period 0.0 129.7 -122.8 0.0 0.0 -1.3 5.6 0.0 5.6
Total transactions with owners
Equity at 30 June 2023
Equity at 1 April 2022
Profit for the period 0.0 0.0 0.0 0.0 0.0 84.7 84.7 0.3 85.0
Other comprehensive income 0.0 0.0 0.0 -3.2 0.0 0.0 -3.2 0.2 -3.0
Total comprehensive income
Treasury Shares for the period 0.0 -50.7 0.0 0.0 0.0 0.0 -50.7 0.0 -50.7
Share-based remuneration for the period 0.0 0.0 8.5 0.0 0.0 0.0 8.5 0.0 8.5
Movement of non-controlling interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.2 -0.2
Total transactions with owners
-42.1
-0.2 -42.3
Equity at 30 June 2022
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
23
37
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
STATEMENT OF CHANGES IN EQUITYCONTINUED
Equity at 1 January 2022
Profit for the period 0.0 0.0 0.0 0.0 0.0 218.1 218.1 -0.4 217.7
Other comprehensive income 0.0 0.0 0.0 -2.3 -0.0 0.0 -2.3 0.4 -1.9
Total comprehensive income
Treasury Shares for the period 0.0 -100.8 0.0 0.0 0.0 0.2 -100.6 0.0 -100.6
Share-based remuneration for the period 0.0 39.3 -23.7 0.0 0.0 1.3 16.9 0.0 16.9
Movement of non-controlling interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.2 -0.2
Total transactions with owners
Equity at 30 June 2022
Equity at 1 January 2022
Total comprehensive income
Total transactions with owners
Equity at 31 December 2022
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
24
37
Group Denmark Intrasoft UK Norway Netherlands
DKK million
Q2 2023 Q2 2022 % change Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022
Revenue 1,009.1 836.9
20.6%
423.9 386.4 383.8 307.0 129.1 92.4 41.0 33.5 31.2 17.6
Cost of service -747.5 -633.1
18.1%
-293.0 -262.4 -292.9 -242.9 -99.2 -71.7 -32.5 -35.7 -29.8 -20.4
Gross profit
261.6 203.8
28.4%
130.9 124.0 90.9 64.1 29.8 20.7 8.6 -2.1
1.4 -2.8
Gross profit margin
25.9% 24.4% 1.6pp 30.9% 32.1% 23.7% 20.9% 23.1% 22.4% 20.8% -6.4% 4.5% -16.1%
Allocated costs -163.4 -130.0
25.7%
-84.5 -61.5 -43.0 -34.2 -19.8 -15.5 -7.5 -10.0 -8.6 -8.8
Adjusted EBITA before HQ costs
98.2 73.8
33.1%
46.4 62.5 48.0 29.9 10.0 5.2 1.0 -12.2
-7.2 -11.6
Adjusted EBITA margin before
allocated cost from HQ
9.7% 8.8% 0.9pp 11.0% 16.2% 12.5% 9.7% 7.8% 5.6% 2.5% -36.4% -23.1% -66.0%
Allocated costs from HQ -7.8 -8.3
-5.9%
-5.2 -5.6 0.0 0.0 -1.6 -1.5 -0.5 -0.7 -0.5 -0.5
EBITA
90.4 65.5 38.0% 41.3 56.9 48.0 29.9 8.4 3.7 0.5 -12.9 -7.7 -12.1
EBITA margin
9.0% 7.8% 1.1pp 9.7% 14.7% 12.5% 9.7% 6.5% 4.0% 1.2% -38.4% -24.8% -68.7%
Amortisation -22.9 -21.4
6.7%
-9.6 -11.3 -8.4 -4.7 -3.0 -3.1 -0.9 -1.3 -1.0 -1.0
Operating profit
67.5 44.0 53.2% 31.7 45.5 39.6 25.2 5.4 0.6 -0.4 -14.2 -8.7 -13.0
Operating profit margin
6.7% 5.3% 1.4pp 7.5% 11.8% 10.3% 8.2% 4.2% 0.6% -1.1% -42.4% -27.9% -74.2%
Segment information
Public Q2
NOTE 1
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
25
37
Group Denmark Intrasoft UK Norway Netherlands
DKK million
Q2 2023 Q2 2022 % change Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022
Revenue 484.8 468.9
3.4%
269.6 292.3 139.5 112.1 40.1 41.7 35.4 22.3 0.2 0.4
Cost of service -343.6 -308.6
11.3%
-169.0 -170.0 -109.8 -88.1 -28.3 -26.4 -36.2 -23.7 -0.2 -0.3
Gross profit
141.2 160.3 -11.9% 100.6 122.3 29.7 24.0 11.8 15.3 -0.9 -1.4
-0.0 0.0
Gross profit margin
29.1% 34.2% -5.1pp 37.3% 41.8% 21.3% 21.4% 29.4% 36.6% -2.4% -6.2% -4.7% 11.1%
Allocated costs -82.6 -65.0
27.1%
-52.5 -42.3 -16.2 -11.5 -6.1 -5.4 -7.7 -5.7 -0.0 -0.1
Adjusted EBITA before HQ costs
58.6 95.3 -38.5% 48.1 80.1 13.5 12.4 5.7 9.9 -8.6 -7.1
-0.1 -0.1
Adjusted EBITA margin before
allocated cost from HQ
12.1% 20.3% -8.2pp 17.8% 27.4% 9.7% 11.1% 14.2% 23.7% -24.2% -31.6% -26.4% -17.4%
Allocated costs from HQ -4.2 -4.8
-11.6%
-3.2 -3.9 0.0 0.0 -0.5 -0.5 -0.5 -0.4 -0.0 -0.0
Other operating income / ex-
pense
0.4 -0.1
N/A
0.0 0.0 0.4 -0.1 0.0 0.0 0.0 0.0 0.0 0.0
EBITA
54.8 90.4 -39.3% 44.8 76.2 13.9 12.3 5.2 9.4 -9.1 -7.4 -0.1 -0.1
EBITA margin
11.3% 19.3% -8.0pp 16.6% 26.1% 10.0% 11.0% 13.0% 22.4% -25.7% -33.3% -27.8% -19.0%
Amortisation -12.0 -11.2
7.0%
-7.7 -7.8 -2.5 -1.6 -0.9 -1.1 -1.0 -0.8 -0.0 -0.0
Operating profit
42.8 79.1 -45.9% 37.1 68.4 11.4 10.7 4.3 8.3 -10.0 -8.2 -0.1 -0.1
Operating profit margin
8.8% 16.9% -8.1pp 13.8% 23.4% 8.2% 9.6% 10.8% 19.8% -28.4% -36.7% -30.2% -22.2%
Segment information
Private Q2
CONTINUED
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
26
37
Group Denmark Intrasoft UK Norway Netherlands
DKK million
YTD 2023 YTD 2022 % change YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022
Revenue 2,033.6 1,711.5
18.8%
889.2 797.8 741.8 600.5 249.0 186.5 88.4 81.6 65.3 45.1
Cost of service -1,500.9 -1,274.4
17.8%
-609.9 -533.3 -578.8 -486.7 -185.3 -138.2 -70.0 -75.0 -56.9 -41.2
Gross profit
532.7 437.1 21.9% 279.2 264.5 163.0 113.9 63.7 48.3 18.4 6.6
8.4 3.9
Gross profit margin 26.2% 25.5% 0.7pp 31.4% 33.2% 22.0% 19.0% 25.6% 25.9% 20.8% 8.1% 12.9% 8.6%
Allocated costs -314.4 -246.9
27.3%
-164.7 -117.9 -82.2 -66.5 -34.4 -27.0 -16.5 -19.0 -16.6 -16.5
Adjusted EBITA before HQ costs
218.3 190.2 14.8% 114.5 146.6 80.8 47.3 29.3 21.3 1.9 -12.4
-8.2 -12.6
Adjusted EBITA margin before
allocated cost from HQ
10.7% 11.1% -0.4pp 12.9% 18.4% 10.9% 7.9% 11.8% 11.4% 2.2% -15.2% -12.5% -27.9%
Allocated costs from HQ -17.0 -17.2
-1.4%
-11.4 -11.7 0.0 0.0 -3.3 -3.0 -1.1 -1.5 -1.1 -1.0
EBITA
201.4 173.0 16.4% 103.1 134.9 80.8 47.3 26.1 18.3 0.8 -13.9 -9.3 -13.6
EBITA margin
9.9% 10.1% -0.2pp 11.6% 16.9% 10.9% 7.9% 10.5% 9.8% 0.9% -17.0% -14.2% -30.2%
Amortisation -44.6 -42.6
4.6%
-19.4 -22.9 -15.8 -9.1 -5.6 -5.9 -1.9 -2.9 -1.9 -2.0
Operating profit
156.8 130.4 20.2% 83.7 112.0 65.0 38.3 20.5 12.4 -1.2 -16.7 -11.2 -15.6
Operating profit margin
7.7% 7.6% 0.1pp 9.4% 14.0% 8.8% 6.4% 8.2% 6.7% -1.3% -20.5% -17.2% -34.6%
Segment information
Public First 6 months
CONTINUED
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
27
37
Group Denmark Intrasoft UK Norway Netherlands
DKK million
YTD 2023 YTD 2022 % change YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022
Revenue 1,000.4 965.7
3.6%
573.7 606.3 263.5 217.1 84.8 89.0 77.9 52.3 0.5 1.0
Cost of service -690.3 -621.5
11.1%
-351.7 -338.2 -207.7 -174.8 -57.6 -58.4 -72.9 -49.1 -0.4 -0.9
Gross profit
310.2 344.2 -9.9% 222.0 268.1 55.8 42.2 27.2 30.6 5.0 3.2
0.1 0.1
Gross profit margin
31.0% 35.6% -4.6pp 38.7% 44.2% 21.2% 19.5% 32.1% 34.4% 6.5% 6.1% 13.8% 7.6%
Allocated costs -160.5 -124.2
29.2%
-103.2 -80.3 -29.8 -22.5 -11.5 -10.3 -15.9 -10.8 -0.1 -0.3
Adjusted EBITA before HQ costs
149.6 220.0 -32.0% 118.8 187.8 26.0 19.7 15.7 20.3 -10.9 -7.6
-0.0 -0.2
Adjusted EBITA margin before
allocated cost from HQ
15.0% 22.8% -7.8pp 20.7% 31.0% 9.9% 9.1% 18.5% 22.8% -14.0% -14.5% -4.1% -22.4%
Allocated costs from HQ -9.4 -10.0
-6.1%
-7.2 -8.0 0.0 0.0 -1.1 -1.2 -1.1 -0.8 -0.0 -0.0
Other operating income / ex-
pense
0.6 0.1
814.2%
0.0 0.0 0.6 0.1 0.0 0.0 0.0 0.0 0.0 0.0
EBITA
140.9 210.0 -32.9% 111.6 179.8 26.6 19.8 14.6 19.1 -12.0 -8.4 -0.0 -0.2
EBITA margin
14.1% 21.7% -7.7pp 19.5% 29.7% 10.1% 9.1% 17.2% 21.4% -15.4% -16.1% -5.4% -24.3%
Amortisation -24.1 -22.7
6.2%
-15.6 -15.5 -4.8 -3.2 -1.9 -2.3 -1.9 -1.6 -0.0 -0.0
Operating profit
116.8 187.4 -37.7% 96.0 164.3 21.9 16.6 12.7 16.8 -13.8 -10.0 -0.0 -0.3
Operating profit margin
11.7% 19.4% -7.7pp 16.7% 27.1% 8.3% 7.7% 15.0% 18.8% -17.7% -19.2% -7.4% -28.2%
Segment information
Private First 6 months
CONTINUED
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
28
37
Segment information related to geographical areas
Q2 2023
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 704.6 197.9 176.3 168.6 77.5 59.7 36.4 72.7 1,493.9
Q2 2022
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 682.6 140.3 136.8 192.8 56.1 33.5 18.7 45.0 1,305.8
CONTINUED
YTD 2023
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 1,484.1 372.7 346.0 317.2 168.1 142.1 75.2 128.6 3,034.1
YTD 2022
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 1,414.0 266.9 280.0 394.3 134.6 37.8 47.5 102.2 2,677.2
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
Geographical 6 months and full year
Segment information related to geographical areas
Segment information
Geographical
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
29
37
Administrative costs
Cost of services
NOTE 2
NOTE 3
DKK million
Q2 2023 Q2 2022 YTD 2023 YTD 2022 Total 2022
Cost of services -279.8 -240.2 -549.1 -461.0 -983.2
Salaries -806.8 -696.6 -1,632.9 -1,423.0 -2,764.9
Depreciation -4.4 -4.9 -9.2 -12.0 -24.1
Cost of services total
-1,091.1 -941.7 -2,191.2 -1,895.9 -3,772.2
DKK million
Q2 2023 Q2 2022 YTD 2023 YTD 2022 Total 2022
Administrative costs -113.0 -94.9 -216.4 -176.8 -369.4
Salaries -85.5 -75.8 -172.8 -149.7 -280.0
Depreciation -45.9 -27.9 -86.4 -53.4 -114.5
Administrative costs total
-244.4 -198.5 -475.6 -380.0 -763.9
Financial income and expenses
NOTE 4
DKK million
Q2 2023 Q2 2022 YTD 2023 YTD 2022 Total 2022
Financial Income
Exchange rate adjustments 4.4 3.3 7.7 6.7 27.3
Other financial income 0.6 0.3 1.2 1.7 3.0
Financial income total
5.0 3.5 8.9 8.4 30.3
Financial expenses
Interest expense, bank loan -20.7 -6.7 -40.1 -13.3 -41.8
Interest expense, leasing -6.0 -1.6 -8.3 -3.0 -7.1
Exchange rate adjustments -8.0 -6.5 -17.1 -11.7 -34.7
Other financial expenses -5.0 -7.6 -7.7 -11.6 -16.6
Fair value adj. of contingent consideration 0.0 0.0 0.0 0.0 -7.9
Financial expenses total
-39.7 -22.3 -73.2 -39.5 -108.1
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
30
37
Earnings per share
NOTE 5
DKK million
Q2 2023 Q2 2022 YTD 2023 YTD 2022 Total 2022
Earnings per share - EPS (DKK) 1.11 1.72 3.20 4.43 12.26
Diluted earnings per share - EPS-D (DKK) 1.10 1.70 3.18 4.38 12.15
Profit
54.9 84.7 158.5 218.1 603.4
Average number of shares 50.0 50.0 50.0 50.0 50.0
Average number of treasury shares 0.4 0.7 0.5 0.7 0.8
Average number of shares in circulation 49.6 49.3 49.5 49.3 49.2
Average number of outstanding restricted stock units 0.3 0.5 0.3 0.5 0.5
Average number of diluted shares in circulation 49.9 49.7 49.8 49.7 49.7
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 30 June 2023, the
Group recognised a provision for expect-
ed credit losses of DKK 17.3m (30 June
2022: DKK 20.4m), and no credit losses
have incurred during Q2 2023.
The credit quality of trade receivables at
30 June 2023, is considered satisfactory.
Trade receivables
NOTE 6
30 June 30 June 31 December
DKK million
2023 2022 2022
Not overdue 726.8 672.6 746.5
0-30 days overdue 203.6 209.6 224.0
31-60 days overdue 67.4 91.6 61.4
61-90 days overdue 26.8 60.2 33.4
Over 90 days overdue 104.9 82.1 63.2
Total trade receivables excl. expected credit loss
1,129.6 1,116.1 1,128.5
Expected credit loss -17.3 -20.4 -16.6
Total trade receivables
1,112.3 1,095.7 1,112.0
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
31
37
Contract work in progress
NOTE 7
30 June 30 June 31 December
DKK million
2023 2022 2022
Selling price of work performed on fixed price projects 3,822.9 3,928.7 3,811.9
Invoiced amount on fixed price projects -2,834.4 -3,157.5 -3,130.9
Total contract work in progress
988.4 771.2 681.0
Net value – stated on a contract-per-contract basis – is presented in the statement of
financial position as follows:
Contract work in progress 1,444.8 1,144.3 1,114.5
Prebilled invoices -456.4 -373.2 -433.5
Total contract work in progress
988.4 771.2 681.0
Based on the current project portfolio
including monitoring of deliveries on
projects, the Group has recognised a
provision of DKK 2.5m, covering legal
claims and project related risk (DKK
6.9m).
For further details on contingent purchase
price and earn out, please refer Annual
Report 2022 note 29.
Other costs include accruals for fee, ad-
ministration, sales and other items. Other
accruals liabilities have a remaining term
of up to one year.
Other payables
NOTE 8
30 June 30 June 31 December
DKK million
2023 2022 2022
Wages and salaries, payroll taxes, social security costs, etc. payable 98.6 77.2 87.4
Holiday pay obligation 187.4 160.5 97.0
VAT and duties 93.8 95.6 111.0
Contingent purchase price & earn out 0.0 93.4 101.3
Holdback 10.2 60.8 10.2
Other costs payable 270.2 210.1 233.7
Total other payables
660.2 697.7 640.6
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
32
37
Income Statement classified by function
DKK million
Q2 2023 Q2 2022 YTD 2023 YTD 2022 Total 2022
Income statement
Revenue 1,493.9 1,305.8 3,034.1 2,677.2 5,544.6
Cost of services, incl. depreciation and amortisation -1,103.6 -948.0 -2,215.2 -1,908.1 -3,803.3
Gross profit
390.3 357.8 818.9 769.1 1,741.3
Sales and marketing costs -13.6 -9.5 -25.6 -18.3 -41.0
Administrative costs, incl. depreciation, amortisation and special items -266.7 -224.9 -520.3 -433.1 -866.8
Other operating income / expense 0.4 -0.1 0.6 0.1 5.9
Operating profit (EBIT)
110.3 123.2 273.6 317.8 839.4
Financial income 5.0 3.5 8.9 8.4 30.3
Financial expenses -39.7 -22.3 -73.2 -39.5 -108.1
Income / loss from joint venture / associates -1.8 -3.8 -4.5 -7.9 -5.1
Profit / loss before tax
73.8 100.6 204.8 278.8 756.5
Tax on the profit for the period
-18.6 -15.6 -46.3 -61.1 -153.8
Net profit / loss for the period
55.2 85.0 158.5 217.7 602.8
Depreciation and Amortisation have been presented as follows in
the income statement:
Cost of services -17.0 -11.2 -33.1 -24.2 -55.3
Administrative costs -68.2 -54.3 -131.1 -106.5 -217.4
Depreciation and amortisation -85.2 -65.5 -164.2 -130.7 -272.7
NOTE 9
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
33
37
As a part of the contract commitments
with customers, the Group has through its
banks provided performance guarantees
of DKK 567.8m (DKK 483.3m).
In Q2 2023, Netcompany recognised
revenue from Smarter Airports A/S of
DKK 9.1m (DKK 21.8m).
There are no collaterals provided for
the Group’s bank loan.
Related party transactions
Collateral provided and contingent liabilities
NOTE 10
NOTE 11
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 Q2
2023 financial report have 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 for Net-
Accounting policies
NOTE 12
company Group A/S, except for amended
interpretation of IFRS 3 section B55(a)
which state that earn-out payments sub-
ject to the selling shareholders continued
employment during a specified period of
time is expensed as remuneration over
the period in accordance with the out-
come of the compliance review of Net-
company Group A/S’ Annual Reports for
2020 and 2021 by the Danish Business
Authorities.
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
34
37
Financial figures and highlights
NOTE 13
% change % change
DKK million
Q2 2023 Q2 2022 Q2 YTD 2023 YTD 2022 YTD
Income statement
Public revenue 1,009.1 836.9
20.6%
2,033.6 1,711.5
18.8%
Private revenue 484.8 468.9
3.4%
1,000.4 965.7
3.6%
Revenue by segments, total
1,493.9 1,305.8 14.4% 3,034.1 2,677.2 13.3%
Development revenue 521.2 604.2
-13.7%
1,145.5 1,259.0
-9.0%
Maintenance revenue 938.2 698.9
34.2%
1,850.9 1,412.9
31.0%
License revenue 34.4 2.6
1220.1%
37.6 5.3
606.0%
Revenue by types, total
1,493.9 1,305.8 14.4% 3,034.1 2,677.2 13.3%
Organic revenue 1,493.9 886.7
14.4%
3,034.1 1,859.6
13.3%
Non-organic revenue 0.0 419.1
N/A
0.0 817.6
N/A
Revenue by growth, total
1,493.9 1,305.8 14.4% 3,034.1 2,677.2 13.3%
Adjusted EBITDA 195.1 188.8
3.3%
437.2 448.4
-2.5%
EBITDA 195.5 188.7
3.6%
437.8 448.5
-2.4%
Adjusted EBITA 144.8 156.0
-7.2%
341.6 383.0
-10.8%
EBITA 145.2 155.8
-6.8%
342.2 383.1
-10.7%
Operating profit (EBIT) 110.3 123.2
-10.5%
273.6 317.8
-13.9%
Net financials -34.7 -18.8
85.0%
-64.3 -31.1
106.5%
Net profit / loss 55.2 85.0
-35.1%
158.5 217.7
-27.2%
Financial position
Capex -72.9 -31.6
130.3%
-121.5 -50.7
139.7%
Total assets 7,600.0 7,052.9
7.8%
7,600.0 7,052.9
7.8%
Equity 3,693.6 3,169.7
16.5%
3,693.6 3,169.7
16.5%
Net increase in cash and cash equivalents -206.4 -68.0
203.5%
-298.3 -205.1
45.5%
Free cash flow -72.5 7.3
-1086.5%
69.1 57.9
19.4%
Free cash flow (tax normalised) -93.0 -20.5
1.0%
73.6 106.3
-30.8%
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
35
37
Earnings per share
Earnings per share (DKK) 1.11 1.72
-35.6%
3.20 4.43
-27.6%
Diluted earnings per share (DKK) 1.10 1.70
-35.4%
3.18 4.38
-27.4%
Employees
Average number of full-time employees 7,701 6,719
14.6%
7,599 6,616
14.9%
FINANCIAL FIGURES AND HIGHLIGHTS
CONTINUED
Financial ratios
Revenue growth 14.4% 58.0%
-43.5pp
13.3% 59.2%
-45.9pp
Gross profit margin 27.0% 27.9%
-0.9pp
27.8% 29.2%
-1.4pp
Adjusted EBITDA margin 13.1% 14.5%
-1.4pp
14.4% 16.7%
-2.3pp
EBITDA margin 13.1% 14.4%
-1.4pp
14.4% 16.8%
-2.3pp
Adjusted EBITA margin 9.7% 11.9%
-2.3pp
11.3% 14.3%
-3.0pp
EBITA margin 9.7% 11.9%
-2.2pp
11.3% 14.3%
-3.0pp
Operating profit margin 7.4% 9.4%
-2.1pp
9.0% 11.9%
-2.9pp
Effective tax rate 25.2% 15.5%
9.6pp
22.6% 21.9%
0.7pp
Return on equity 1.6% 2.9%
-1.3pp
4.6% 7.5%
-2.8pp
Solvency ratio 48.6% 44.9%
3.7pp
48.6% 44.9%
3.7pp
ROIC 1.1% 2.0%
-1.0pp
3.0% 5.2%
-2.2pp
ROIC (Adjusted for Goodwill) 2.9% 6.2%
-3.3pp
8.4% 16.0%
-7.6pp
Cash conversion ratio -87.9% 6.6%
-94.6pp
32.6% 21.5%
11.0pp
Cash conversion ratio (tax normalised) -112.8% -18.5%
-94.3pp
34.7% 39.6%
-4.9pp
% change % change
DKK million
Q2 2023 Q2 2022 Q2 YTD 2023 YTD 2022 YTD
Netcompany maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
36
37
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 maintained momentum through Q2 and grew topline by 15.7%. Expectations for full year maintained
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 10/2023
16 August 2023
37
37
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.
Disclaimer