digital future
Annual
Report
2022
Creating a
sustainable
In this report
Message from the CEO
André Rogaczewski comments on
2022 from a business point of view
Watch the video
https://www.netcompany.com/int/Inves-
tor-Relations/Annual-Report
Message from the Chairman
Bo Rygaard comments on 2022
from a strategic point of view
Watch the video
https://www.netcompany.com/int/Inves-
tor-Relations/Annual-Report
Message from the CFO
Thomas Johansen comments on the
financial performance of 2022
Watch the video
https://www.netcompany.com/int/Inves-
tor-Relations/Annual-Report
At a glance
Netcompany in numbers 5
Letter from the Chairman 7
Letter from the CEO 10
Financial highlights and key figures 16
Our business
Netcompany ambition 18
Netcompany DNA 20
Product suite 24
People and talents 27
Netcompany-Intrasoft 31
Key trends 32
Performance review
Outlook 35
Financial overview 38
Operating entities 42
Revenue visibility 47
Capital 48
ESG 49
Shareholder information 51
Governance
Corporate governance 55
Board of Directors 59
Executive Management 61
Remuneration 62
Risk management 64
Financial statements
Consolidated financial statement 70
Parent company financial statement 125
Board of Directors and Executive
Management statements 140
Independent auditor’s report 141
Formulas 146
Company information 147
Other statutory reports
As part of annual report-
ing Netcompany have also
released the following
Remuneration report
https://www.netcompany.com/int/
Investor-Relations/Governance
ESG report
https://www.netcompany.com/
int/ESG
2,839
Revenue
52.7%
DKKm
5,545
2021
2022 5,545
2020
3,632
EBITDA
31.9%
DKKm
1,112
809
2021
2022 1,112
2020
843
Employees at year end
Headcounts
7,566
16.3%
3,134
2021
2022 7,566
2020
6,505
Netcompany
in numbers
Financial highlights
Netcompany continued to grow in
revenue, adjusted EBITDA and employees.
In 2022, revenue grew 52.7%, while deliv-
ering an adjusted EBITDA margin of 20%
and a tax normalised cash conversion of
90.9%. End of year headcounts grew to
more than 7,500 employees.
20.0%
Adjusted EBITDA margin
90.9%
Normalised cash conversion
5
At a glance ANNUAL REPORT 2022Our business Performance review Governance Financial statements
Netcompany
in numbers
Non-Financial highlights
Netcompany's talented employees make it
possible by moving forward sustainable
innovation, one solution at a time.
89%
Renewable energy share
26%
Gender diversity (26% female)
+33
Employee satisfaction (eNPS)
6
At a glance ANNUAL REPORT 2022Our business Performance review Governance Financial statements
Watch the video
from our Chairman
https://www.netcompany.com/int/
Investor-Relations/Annual-Report
Continuing growth
in a challenging
environment
Letter from the Chairman
In 2022, our focus in Netcompany has been two-
fold. We have accelerated our work related to
realising business benefits with Netcompany-
Intrasoft, and we have prioritised completion of
ongoing integration efforts in existing markets.
Chairman of the
Board of Directors
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At a glance ANNUAL REPORT 2022Our business Performance review Governance Financial statements
"Despite all the challenges we have
seen in 2022 we have managed to
deliver results in line with original
guidance set out in January 2022."
Coming out of 2021 and entering 2022, the
initial expectation for the year was, to a cer-
tain extent, that 2022 would be far less
extraordinary than the previous couple of
years. This turned out not to be the case –
far from it. With the increased geopolitical
unrest in the eastern part of Europe,
increased inflation and most recently the
likely beginning of a period of recession,
2022 turned out to be as challenging and
complex to navigate as 2021.
In 2022, we have been pleased with the
performance of our latest acquisition,
Netcompany-Intrasoft and have acceler-
ated the ongoing projects to recap business
benefits faster than originally planned. As a
result, we won a significant number of large
contracts both in the EU and in Greece,
including contracts under the EU Resilience
and Recovery Facility. We are excited to see
the enthusiasm of our new colleagues from
Netcompany-Intrasoft and the added busi-
ness benefits the acquisition already offer
our customers. With the acquisition of
Netcompany-Intrasoft in 2021 and the exist-
ing markets entered into through previous
acquisitions, we are keen to deliver value to
our shareholders through these rather than
making yet another acquisition. In addition,
our home-base in Denmark continues to be
an important market for the Group, where
we believe growth opportunities still exist,
which require our attention and focus.
We are of the firm belief that the adjust-
ments made to the organisations in Norway
and in the Netherlands, combined with the
project cleanups made in the middle of the
year, were the right actions to take despite
the temporarily dilutive impact on earnings
they had. Both in Norway and in the
Netherlands we stand on a significantly
improved platform with highly dedicated
employees and strategically interesting pro-
jects that will pave the way for our contin-
ued growth ambitions in these countries.
Our operation in the UK has shown signifi-
cant improvement during 2022. The growth
opportunity for Netcompany in the UK
remains significant, despite the gloomy
macro-economic outlook for the UK. As a
consequence we continue to focus on deliv-
ering highly complex solutions within key
parts of the public administration.
Despite all the challenges we have seen in
2022, we have managed to deliver results in
line with the original guidance set out in
January 2022 realising revenue growth of
52.7% and an adjusted EBITDA margin of
20%. A significant part of the revenue
growth was attributed to the acquisition of
Netcompany-Intrasoft in 2021 that
accounted for 37.8 percentage points of the
growth, leaving organic revenue growth at
14.9% for the year.
Irrespective of our strong offering and posi-
tioning in the market we are looking into a
recession for 2023 that will affect most
companies including Netcompany. In that
aspect we expect to grow organically
between 8 % and 12% in 2023 and we
expect to generate an adjusted EBITDA
margin between 15% and 18%.
Our communication with stakeholders
We pride ourselves on being open, direct
and transparent in all we do – both in rela-
tion to customers, employees, shareholders
and other stakeholders. We noted that
some of our communication with share-
holders and the stock market participants
in general could be improved and thus, we
have introduced structured summary mem-
orandums of all publicly available and previ-
ously communicated information and we
have conducted a large and extensive
8
At a glance ANNUAL REPORT 2022Our business Performance review Governance Financial statements
Bo Rygaard
Chairman of the Board of Directors
perception study to gain more insight into
potential improvements in our communica-
tion with shareholders.
During 2022, we were nominated as one of
three C25 companies in Denmark to receive
the "Annual Report Award 2022"
(“Årsrapportprisen 2022”) based on our
Annual Report last year. While we ended as
the runner up, I am proud of the recognition
of the good work we put into making a
comprehensive and detailed annual report
that gives the reader a good and relevant
overview of our business and performance.
Our work as Board of Directors
During the year, we have engaged in dis-
cussions and prioritisations of the strategic
direction and the financial performance, risk
management and general governance with
Executive Management. As a result of these
discussions we have worked with Executive
Management in the articulation and
enhancement of the "Go-To-Market" strat-
egy based on a set of verticals that we
expect will enable and support continued
growth and lead to efficiency gains – not
only for Netcompany – but also for our cus-
tomers.
We have also performed an evaluation of
our work as Board of Directors, particularly
related to our ability to fulfil our fiduciary
duties as a collective body. Our conclusion
is that we believe that we collectively pos-
sess adequate and relevant competences
and experiences to ensure proper oversight
of Netcompany. We further concluded that
our level of engagement with Executive
Management was highly satisfactory.
Capital Structure
During the year, we executed two share
buyback programmes with a total value of
DKK 100m and repaid DKK 350m of the
company’s debt bringing leverage from 2.7
times at the beginning of the year to 1.6
times at the end of 2022. We expect cash
flow to be stronger in 2023 and will primar-
ily use free cash flow generated to bring
our debt further down.
"During 2022, we were
nominated as one of three C25
companies in Denmark to receive
the “Annual Report Award 2022”
based on our 2021 Annual Report."
"Based on continued
strong cash flow we
expect to deleverage
significantly in 2023”
9
At a glance ANNUAL REPORT 2022Our business Performance review Governance Financial statements
Staying the course
of becoming a
European leader
Letter from the CEO
Despite yet another challenging year for Netcompany -
and Europe for that matter, with significantly increased
geopolitical uncertainty, high inflation and a glooming
recession awaiting in 2023, we delivered strong results,
and grew 52.7% and realised a margin of more than 20%
- in line with our guidance set out back in January 2022.
Once again, I am deeply amazed by the performance
our world class employees deliver together with our
customers that bring industry leading solutions to life.
André Rogaczewski
CEO and Co-Founder
Watch the video
from our CEO
https://www.netcompany.com/int/
Investor-Relations/Annual-Report
10
At a glance ANNUAL REPORT 2022Our business Performance review Governance Financial statements
Unlike in 2021, where we made a large
transformational acquisition of Intrasoft,
our focus for 2022 has to a much higher
degree been on advancing and accelerating
our existing businesses – not only in
Denmark but also in Norway, the UK and
the Netherlands, and naturally to increase
the existence of joint projects between
Netcompany-Intrasoft and the rest of the
Netcompany Group.
At the end of 2022, we were more than
7,500 talented employees in Netcompany
with skills to drive digitalisation further in
Europe – not only in the short term but also
with a longer perspective. We strongly
believe in our focus on digitalisation to be
the very foundation to enable Europe in its
continuous development of wealth and
prosperity, while continuing to be a free
and strong democracy. With the solutions
and platforms that we have developed in
Netcompany, we see ourselves as stewards
of the continued European digitalisation.
In 2021, we structured our Govtech
Framework and flexible platform engineer-
ing approach, and with the additional plat-
forms and products from Intrasoft now
being part of our total offering, we are
ready to enhance our platforms even fur-
ther with a new and more structured
“Go-To-Market” approach, focusing on a
high degree of re-usability in the initial
sales approach and in the subsequent
implementation effort. We will focus on
eight initial industries – both in the public
and the private segment across all of our
operations in Europe. This is a significant
investment for the company that is also
reflected in our expectations for margin in
2023. However, we remain fully convinced
that the “Go-To-Market” approach, target-
ing industries and utilising already existing
platforms and products, will be a strategic
advantage to Netcompany. These offerings
help governments and businesses across
markets, pave the way for a successful and
sustainable business model in the future,
leading to better scalability and efficiency
gains.
Accelerating digital
transformation of societies
During the year, Netcompany has been a
key driver of continued digitalisation – both
in the public and the private sector. In the
public sector the continued challenging
development in the demographics of socie-
ties paired with the increased insecure
geopolitical situation has underpinned the
need for effective and robust digital trans-
formation projects.
We have worked with a number of tax
administrations in different European
countries to ensure that the basis for a
well-functioning welfare system is upheld
through continued renewal of system infra-
structure and solutions. This is often build-
ing on relationships and solutions already
sold by Intrasoft in previous years. The
same goes for our focus into the customs
area, where all EU member states have to
comply with the EU Unified Customs Code
regulation, some by the end of 2023 and
others by 2025.
Our presence within the private segment is
to a large degree still rooted in our Danish
operation based on strong and long rela-
tionships with leading enterprises such as
Novo Nordisk, TopDanmark and
Copenhagen Airport to mention a few.
The common denominator for the projects
embarked on in the private sector has been
reduction of Opex via an initial investment
in Capex. In simple terms this means that
the only way many large enterprises can
optimise the running of their operation is
through investment into new digital solu-
tions and platforms unlocking value and
potential. In a recession scenario such
investments will become even more acute
as they will be defining which enterprises
prevail and which will go out of business.
"At the end of 2022 we were more
than 7,500 talented employees in
Netcompany with skills to drive
digitalisation further in Europe –
not only in the near term but also
with a longer perspective."
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At a glance ANNUAL REPORT 2022Our business Performance review Governance Financial statements
André Rogaczewski
CEO and Co-Founder
"Our reputation as a leading IT
company with exceptional career
opportunities for IT professionals
supports our high demand for new
recruits – not only in Denmark but
throughout the entire Group."
Intrasoft have strengthened during the
year.
IT people leading IT people - in a
structured "Go-To-Market" approach
- the core of our future success
IT people leading IT people is a guiding
principle in Netcompany and constitutes a
unique differentiator creating high value for
our customers.
To ensure that we can meaningfully scale
this approach throughout Europe we are
excited about our significant investment
into the new “Go-To-Market” approach as
we believe this will bring additional new
customers to Netcompany, enhance our
footprint with existing customers and at the
same time impose a more efficient opera-
tion – to the benefit of both Netcompany
and our customers.
To realise that potential, we are dependent
on attracting new talent. It continues to
make me proud that so many great people
share our vision and pursue a career in
Netcompany. In times of increased uncer-
tainty and a recession in the horizon
Netcompany will still be a natural place for
outstanding talents with IT competences to
seek into in order to fulfil their ambitions. I
am therefore pleased to have welcomed
more than 2,400 new employees to
Netcompany during the year throughout
the Group. Our reputation as a leading IT
company with exceptional career opportu-
nities to IT professionals supports our high
demand for new recruits – not only in
Denmark but throughout the entire Group.
I am also pleased to see the eagerness and
motivation from both the Danish part of
Netcompany and the new colleagues from
Netcompany-Intrasoft, when working
together on joint projects, especially within
the customs area. This will be transforma-
tional – not only for Netcompany but also
for the customers we serve.
We will continue to invest significantly in
our people, our training activities, and
social company events to always stay
among the best places to work for IT pro-
fessionals.
I am enthusiastic about the future and con-
fident in our vision to become a European
leader.
We are recognised and positioned as a
highly valued partner in delivering complex
technology transformation to support both
private and public businesses throughout
Europe, which, in the uncertain times ahead
of us, gives me a belief in our ability to pre-
vail as a winner on the other side of the
uncertainty.
Optimising performance
throughout the Group
We have focused our efforts on ensuring
strong operational capabilities in both the
Norwegian and Dutch operations and we
are confident that these will yield noticea-
ble results in 2023. We have further
expanded our footprint in the UK market
and delivered strong growth during the
year. We expect the UK to be a significant
growth driver for the Group in the near
term given the sheer magnitude of the mar-
ket and our strong references based on
impeccably well executed project deliveries
during the year.
Performance in Netcompany-Intrasoft has
been strong and we have seen an increased
exchange of ideas and knowledge between
employees throughout the entire Group
based on the platforms and products
already developed. Further, our offerings
towards the EU, other EU countries and the
Greek home market of Netcompany-
12
At a glance ANNUAL REPORT 2022Our business Performance review Governance Financial statements
Netcompany ambition
Netcompany DNA
At a glance At a glance
Netcompany’s ambition is to become a
market leader within IT services in Europe
Netcompany's DNA is driven by the purpose to
help customers become successful and sustainable
Three main pillars have been defined
to realise the Netcompany ambition
The Netcompany DNA is com-
posed of three unique strings
Land and
expand
in Europe
Utilise
platforms and
products
Export and
implement our
business model
Read more
page 18
Read more
page 20
Unique delivery
capability
Unique domain
insight
Unique technical
foundations and platforms
with high level of
reusability
13
At a glance ANNUAL REPORT 2022Our business Performance review Governance Financial statements
On-the-job
training
AcademyPeer to peer
Product suite
At a glance
Netcompany product suite aims to accelerate deliveries to
industries within both the private and public segment
Read more
page 24
Tax & Customs
Public safety
Healthcare
Transportation
and logistics
Telecoms
Finance
Energy and Utilities
Public segmentPrivate segment
Target Industries
People & talents
At a glance
The backbone of Netcompany is and has always been
the employees and the talent they possess
Read more
page 27
Netcompany takes a threefold
ap proach to the employee learning
environment
Global Mobility
Netcompany offers the
opportunity for employees
to work abroad
Netcompany's Centres of
Excellence are at the very
core of the organisation
and is where best practices
and solutions are shared
Centres of Excellence
Digital Government
14
At a glance ANNUAL REPORT 2022Our business Performance review Governance Financial statements
Netcompany
Methodology
Key trends
External Internal
At a glance
In a challenging year for Europe, Netcompany have
remained focused and agile to accommodate
customer needs
Digitalisation and
standardisation
Green projects
Inflation
War In
Europe
Go-To-Market
approach
Tax compliance
Superior IT leadership
Integration-Methodology
Read more
page 32
Netcompany-Intrasoft
At a glance
Update on the largest acquisition in
Netcompany's history
Read more
page 31
Joint projects will gradually transform
Netcompany-Intrasoft into Netcompany
Core by implementing the
Netcompany Methodology
Netcompany Expand entails
Netcompany-Intrasoft
acquired in October 2021
Netcompany Core entails
Netcompany Denmark
Netcompany Norway
Netcompany UK and
Netcompany Netherlands
15
At a glance ANNUAL REPORT 2022Our business Performance review Governance Financial statements
DKK million 2022 2021 2020 2019 2018
Income statement
Public revenue 3,594.9 2,210.4 1,777.7 1,455.5 1,152.1
Private revenue 1,949.7 1,421.6 1,060.9 998.3 901.1
Revenue by segments, total 5,544.6 3,632.0 2,838.6 2,453.9 2,053.2
Development revenue 2,640.2 2,302.4 1,517.0 1,257.7 1,005.4
Maintenance revenue 2,876.1 1,328.0 1,321.6 1,196.1 1,047.8
License revenue 28.3 1.5 0 0 0
Revenue by type, total 5,544.6 3,632.0 2,838.6 2,453.9 2,053.2
Organic revenue 4,172.8 3,346.4 2,812.4 2,416.5 1,777.5
Non-organic revenue 1,371.9 285.6 26.2 37.4 275.7
Revenue by growth, total 5,544.6 3,632.0 2,838.6 2,453.9 2,053.2
Special items 0.0 -37.7 0.0 -4.4 -34.5
Adjusted EBITDA 1,106.2 880.9 809.4 673.6 554.6
EBITDA 1,112.1 843.0 809.4 669.2 520.1
Adjusted EBITA 967.6 793.2 744.4 617.4 514.2
EBITA 973.5 755.3 744.4 613.0 479.7
Operating profit (EBIT) 839.4 703.8 644.9 511.3 364.3
Net financials -69.9 -33.4 -47.0 -14.0 -108.7
Net profit 602.8 574.3 321.9 388.5 181.2
Financial position
Investments in tangible assets 52.2 46.2 23.9 24.6 22.9
Investments in intangible assets 118.0 11.3 0 0 0
Total assets 7,193.9 7,021.1 4,039.4 3,727.6 3,485.4
Equity 3,526.9 3,037.9 2,428.6 2,071.7 1,806.3
Dividends paid 0.0 49.1 0 0 0
Net increase in cash and cash
equivalents -117.3 93.5 233.6 23.6 -85.3
Above figures have been calculated in accordance with formulas on page 146.
DKK million 2022 2021 2020 2019 2018
Cash flow figures
Cash flow from operating activities 773.0 465.6 580.9 460.3 186.4
Cash flow from investing activities -244.3 -1,254.5 -101.6 -73.3 -27.2
Cash flow from financing activities -646.0 882.4 -245.7 -363.4 -244.6
Free cash flow 602.7 408.0 557.0 435.8 163.6
Net increase in cash and cash
equivalents -117.3 93.5 233.6 23.6 -85.3
Earnings per share
Earnings per share (DKK) 12.27 11.73
6.56 7.91 3.65
Diluted Earnings per share (DKK) 12.15 11.59 6.53 7.89 3.65
Employees
Average number of full-time
employees 6,906 3,787 2,768 2,293 1,861
Financial ratios
Revenue growth 52.7% 27.9% 15.7% 19.5% 45.0%
Gross profit margin 32.0% 36.7% 40.7% 40.6% 39.8%
Adjusted EBITDA margin 20.0% 24.3% 28.5% 27.5% 27.0%
EBITDA margin 20.1% 23.2% 28.5% 27.3% 25.3%
Adjusted EBITA margin 17.5% 21.8% 26.2% 25.2% 25.0%
EBITA margin 17.6% 20.8% 26.2% 25.0% 23.4%
Operating profit margin 15.1% 19.4% 22.7% 20.8% 17.7%
Effective tax rate 20.3% 21.1% 28.7% 21.9% 29.1%
Return on equity 18.4% 21.0% 14.3% 20.0% 10.5%
Solvency ratio 49.0% 43.3% 60.1% 55.6% 51.8%
ROIC 12.0% 14.8% 11.2% 13.6% 6.6%
ROIC (Adjusted for Goodwill) 36.6% 54.1% 53.7% 58.4% 27.9%
Cash conversion ratio 85.2% 66.4% 139.4% 93.2% 60.3%
Financial highlights and key figures
At a glance ANNUAL REPORT 2022Our business Performance review Governance Financial statements
16
Land and expand in Europe
Netcompany will focus on expanding
market share and enter new countries
in Europe, either by larger acquisitions
where scale is instantly achieved
based on existing products and cus-
tomers or through organic build up
based on specific new customer wins
that will yield significant projects at
establishment in a given new country.
At the same time Netcompany will
continue to focus on attracting the
best talent, educating them rigorously,
ensuring quality “side by side” training
with more experienced colleagues and
optimising sourcing of talent
throughout the Group.
Utilise platforms and products
A key part of the Netcompany delivery
model is to use common tools and
methodologies for developing and
documenting new solutions, which
have secured a wide portfolio of plat-
forms that are possible to utilise
across different sectors.
Netcompany will be able to present
flexible, well proven and relevant solu-
tions that comes with pre-defined
logic and capabilities, which will signif-
icantly reduce time to market, and in
turn reduce customers total cost of
ownership. Netcompany firmly believe
this to be a differentiating factor yield-
ing a real and tangible advantage
when competing for new projects in
both public and private segment.
Export and implement
our business model
The way Netcompany operates, devel-
ops and implements complex solu-
tions is unique and difficult to emulate
– if at all possible. The Netcompany
methodology is implemented
throughout a large part of the Group
and in larger acquisitions the
methodology will be applied on new
joint projects won between
Netcompany and the acquired
company, thereby gradually transi-
tioning the methodology to that of
Netcompany.
Establishment into smaller markets
will be greenfield whereas
transformational acquisitions are only
expected if they add products/plat-
forms and customers that will
accelerate growth in both the new
and existing larger markets.
In special cases, smaller “bolt-on”
acquisitions, based on getting access
to specific products and technologies,
in existing markets, could be relevant.
Netcompany
ambition
Netcompany's ambition is
to become a market leader
within IT services in Europe
by 2030. To succeed, Net-
company focus on the
following main pillars:
Our business
18
ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
Spearheading innovation by
protecting intellectual property rights
Intellectual property rights are fundamental for businesses to innovate
and thrive. And they strongly benefit the European economy, as the
industries involved play a crucial role in the prosperity of EU member
countries.
Case story
The European Union Intellectual
Property Office (EUIPO) helps busi-
nesses across Europe and the world
protect their innovations and inven-
tions through design registrations and
trademarks. If their unique designs and
trademarks are not protected in all
regions where they operate, businesses
risk their ideas being stolen or misused.
Similarly, businesses also need to know
that their own inventions are unique
and have not already been trade-
marked or registered by someone else.
The EUIPO is the organisation that
safeguards both. Every year, the
organisation registers close to
200,000 trademarks. This is made
possible by the best-in-class platforms,
tools and services that enable the pub-
lic to check for or register trademarks
and designs at both a European and
international level.
Netcompany supports the EUIPO with
IT services that use the latest technol-
ogies to enable their day-to-day oper-
ations. Netcompany is also supporting
the implementation of EUIPO's 2025
Strategic Plan for an intellectual prop-
erty excellence hub that will assist
European businesses to become more
competitive in an ever more global and
digital environment.
Every year, the organisation
registers close to 200,000
trademarks. This is made
possible by the best-in-class
platforms, tools and
services.
Our business
19
ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
Netcompany DNA
In a challenging time with high inflation, energy
crisis and war, Netcompany maintains focus on the
long term ambition to help build strong sustainable
societies and successful companies and ultimately
create better lives for everyone.
In the past two decades Netcompany has
gained a large and unique knowledge in
several industries, while realising high
growth, based on a solution oriented work
model with a strong proof of client suc-
cesses and a superior talent model with IT
leaderships.
Over time, Netcompany has become a
trusted advisor to governments across
existing markets, and proven its ability to
deliver across markets. That trust have
been mirrored with large private enterprises
particularly in Denmark. In addition,
Netcompany also built a wide portfolio of
platforms and technical foundations, which
combined with strong delivery expertise lay
the fundament for the future success of
Netcompany.
The Netcompany
DNA is composed
of three unique
strings
Unique delivery capability
From home markets, Netcompany bring a unique way of
working and a track record of delivering on time, on budget
and with high quality
Unique industry insight
The focus will be on sectors with a digital ambition,
understanding their business domain and all relevant new
technology adoption
Unique technical foundations and platforms
With a constant desire to reuse, Netcompany has built
a strong library of technical platforms, accelerators and
components to lower risk and ensure efficient and
reliable implementation
Netcompany has over
time built a large part
of the Danish critical IT
infrastructure across
public industries, and
remains focused to
improve and ensure
that the Danish public
infrastructure is best
in class.
Our business
20
ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
Tax & Customs
Public Safety
Healthcare
Digital Government
Transportation
and logistics
Telecoms
Finance
Energy and Utilities
Public segmentPrivate segment
Target Industries
"Go-To-Market" approach
Based on domain insight, Netcompany has
structured a "Go-To-Market" approach
driven by the purpose to help governments
and businesses across markets to become
successful and sustainable. The purpose is
key in the way Netcompany do business
and support additional industry focus
through Industry Leads.
Industry Leads – globally and locally – are
dedicated to sharing knowledge within the
industry, across markets and between cus-
tomers, hence Netcompany, in collaboration
with customers and industries, seek to be
part of the innovation and enhancement of
the entire industry and thereby also
become the “partner of choice” for custom-
ers.
This is a result of 20+ years of knowledge
and several large complex deliveries within
selected industries, which have given
Netcompany the possibility to build a wide
portfolio of foundations and platforms and
further enriched Netcompany with the
knowledge and insight into several indus-
tries/domains.
Netcompany's outside/in focus is essential
to identify tenders and projects early in the
process and enable a strong dialogue with
customers. This will also contribute to gain
further knowledge about customers within
targeted industries, and at the same time
make it feasible to build a strong purpose in
each target industry and utilise the right
people to innovate on technologies and
platforms as soon as a possible demand
becomes apparent.
Unique platforms, combined with strong
references, embassy partnerships, world
class events and costumer to costumer
meetings organised internally, has posi-
tioned Netcompany with the ability to
retain, renew and expand customers and
increase share of wallet.
Industry insight
Netcompany has carefully selected 4+4
industries (4 in public and 4 in private)
through market segmentation by spend,
fit-of-offerings and existing relationships
combined with market maturity assess-
ments. The selected target industries will
be our main focus areas for growth, while a
general opportunistic sales approach is
maintained.
Core libraries of codebase and operational
guidelines in the foundations as well as
technologies and platforms such as
Govtech, Digital Post, Digital Wallet, Ermis,
Icarus, E-Hospital, Profits, DX4B, Airhart
and Pulse will work as accelerators for
growth in these selected industries.
To ensure focus on targeted industries,
Netcompany has reorganised and intro-
duced new roles and will be adding addi-
tional experienced industry leaders to push
and support sales across markets, assets,
and platforms to accelerate growth.
While Netcompany is already at an
advanced stage given the platforms devel-
oped so far, the introduction of an industry
focus will require investments in 2023 - and
beyond - to fully realise the expected bene-
fits.
Our business
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ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
Composable
platforms
Netcompany has in the last couple of years
introduced composable platforms such as the
Govtech platform, Composable Enterprises
and with the acquisition of Netcompany-In-
trasoft expanded the portfolio of platforms to
reuse and work as a foundation.
This modular design of composable platforms
enables customers to “recompose” when
needed, increasing competitiveness while
strengthening resilience to changing business
environments.
The structure of composable platforms and
the building blocks for more standardised
product offerings is based on common foun-
dations.
Rapid innovation
Build, test and release more
rapidly. Fluid configuration
and frequent releases replace
big bang releases.
Flexibility
Pick and choose from the
modules you want to create
unique system verticals.
Best-of-need
Reduce complexity and pay
only for what your business
truly needs.
Independence
Avoid monoliths, legacy
build-up and vendor lock-in.
Easier to attract new IT talent.
Business-IT continuum
Stronger alignment between
business and IT, resulting in
more cohesive applications.
The key benefits from composability are:
Our business
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ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
Foundations
To scale the Netcompany delivery mecha-
nism, Foundations have been introduced.
These are reusable core libraries that will be
the foundation of all new customer solu-
tions going forward. Foundations are to be
implemented on all Netcompany deliveries
during the coming years.
The Netcompany Foundation will work as a
solid common starting point for all new
projects and not only include a production
proven codebase, but also include support/
guidelines for technical functionality includ-
ing transactions, logging, security, configu-
ration etc.
The foundations are well documented
architecture, built, tested and operated by a
central team dedicated to maintaining and
constantly improve and ensure that the
technologies and operational guidelines are
updated to best practice. In addition, deliv-
ery quality assurance processes ensures
that Netcompany methodology is applied
effectively across all projects and technolo-
gies as well.
By using a standardised “starter kit” for
customer solutions Netcompany will accel-
erate deliveries, and customers will stand
on the shoulders of solutions already
delivered and in production. This will give
Netcompany the opportunity to focus on
the customer needs, not blurred by tech-
nology and allow long term efficiency
growth.
The foundations will also improve the inter-
nal delivery culture in Netcompany, hence
terminology will become more clear, and
pop up courses and “Centres of Excellence”
will be used to a higher extent than previ-
ously.
Focus on customer needs
- not technology
Correct focus
Production ready code
Proven architecture
Performance tested
Security tested
Scalable
Stable and reliable code
Reference application
Risk mitigation
Get off to a quick start
Improved delivery time-
scales
Re-use across solutions
The right choices have
already been made
Prebuild done
Detailed design
Programming guidelines
Installation guide
Maintenance guide
Technical infrastructure
Software architecture
Documentation
Clear terminology
Pop-up courses
Integrated in CES & TPS
Established activeCoE
Delivery culture
Our business ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
23
Product suite
By delivering large complex projects to
public and private customers in different
European markets over the last 20+ years,
Netcompany has build a wide knowledge
base and portfolio when it comes to IT
solutions. The domain know-how, and tech-
nologies developed, covers many indus-
tries, some more complex than others.
Platforms and technologies
In recent years, Netcompany has allocated
resources to develop and maintain plat-
forms and technologies that have been
delivered and proven to customers in both
the public and private sector.
In 2022, Netcompany has intensified focus
on target industries selected on the basis
of market capacity, maturity assessments
and internal know-how, technologies and
relations.
By continuously adding functionality, and
by standardising the platform offering to
the extent possible, Netcompany is able to
deliver both society critical IT solutions
embarking on the digital transformation
and innovative and unique solutions that
comes with predefined logic and capabili-
ties.
These solutions are faster to implement and
flexible enough to scale and adapt, which
will reduce time to market and have the
characteristic of standardised products and
platforms.
The domain know-how and product suite
will work as accelerators and assists stake-
holders to improve the digital agenda
within each industry.
Netcompany product suite will accelerate deliveries and will
constantly be updated and maintained to meet the demand in
target industries.
Centre of
Excellence ensures
that the product
suite is up to date
and in accordance
with the best
practice.
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ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
Netcompany industries
and current product suite
offering
Healthcare
Netcompany has during
the pandemic assisted
governments in several
markets developing the
corona passports and
furthermore taken part
in digitising hospitals
with focus on home
hospitalisation and
modernising hospital
operations in a matter
that changes the entire
way of operating a hos-
pital.
Digital
Government
The Group have a
highly configurable
functionally complete
Digital Government
product suite with the
Govtech framework,
Digital Post platform,
"Mit.dk", Social security
platform, "PERSEUS"
and knowledge from
many large complex
deliveries for critical IT
infrastructure.
Tax and
Customs
Netcompany-Intrasoft
have more than 20
years of know-how in
the EU institutions
(TAXUD) and WCO pol-
icy frames and offer the
“ERMIS” and “Proteus”
platforms configured
and adapted to use in
Customs authorities
system landscape. In
addition, the
"Netcompany Tax"
platform covers taxa-
tion with an integrated
solution to manage rev-
enue collection and tax-
payer compliance,
social securities and
pensions.
Public
Safety
Netcompany solutions
support citizens and
public safety officers at
border controls, pris-
ons, patrol cars and
immigration authorities
in safeguarding com-
munities. Netcompany’s
products and platforms
enable authorities to
perform important
tasks such as registra-
tion of immigrants and
immediate response to
urgent events like ter-
rorism.
Telecoms
The Group have exten-
sive know-how com-
bined with scalable
platforms and solutions
ready to assist
European telecom
operators with digitally
transforming their BSS/
OSS ecosystems.
Offerings are based on
executing multiyear
framework contracts
with major European
telecom operators.
Transportation
and logistics
Netcompany has
together with
Copenhagen Airport
entered a joint venture
in developing a digital
airport. This platform,
"Airhart", has after-
wards been adapted to
also support the digital
transport and logistic
across other industries
than airports.
Finance
Based on deep banking
experience and the
robust core banking
platform “PROFITS”,
Netcompany-Intrasoft
has developed “DX4B”;
a standardised, future
proof, cloud-based
banking & finance sys-
tem used to provide
modern solutions for
Electronic Money
Institutions, Neobanks
& Fintechs, Credit
Services, etc. The digi-
tal platform "Mit.dk" is
also to be utilised within
Finance.
Energy and
utilities
Based on deep knowl-
edge, Netcompany par-
ticipates in the current
digitalisation and green
transformation of the
power sector and pro-
vides a range of proven
utility platforms to sup-
port core processes
such as "Netcompany
Billing" and "Pulse" as
the heart of data pro-
cessing and support the
energy consumers with
self-service portal and
market leading cus-
tomer journeys using
"Mit.dk".
Level of reusability
Level of reusability
Level of reusability
Level of reusability
Level of reusability
Level of reusability
Level of reusability
Level of reusability
Our business
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ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
Digitalising customs procedures to
pave the way for other EU countries
Netcompany has successfully delivered a new customs procedure system
for Toldstyrelsen, the Danish Customs Agency, well ahead of the 2025 EU
deadline.
Case story
Toldstyrelsen’s task is to make it easy
for citizens and businesses to pay the
correct customs duty and to safeguard
Denmark against the import of illegal
and harmful goods. Historically, this
meant people had to follow complex,
paper-based procedures. Toldstyrelsen
needed a modern and efficient digital-
ised system to simplify Danish customs
procedures and comply with new EU
rules.
Drawing on 20+ years of experience
working with customs authorities and
the EU, Netcompany helped
Toldstyrelsen deliver before the dead-
line set by the European Union
Customs Code, requiring all customs
procedures to be made digital by 2025.
The new Declaration Management
System supports Toldstyrelsen’s vision
of ensuring correct settlement, easy
trade and effective control of goods. It
is built using flexible and future-proof
architecture, which allows for scalabil-
ity and full performance and accom-
modates the anticipated increase in
annual customs declarations. The sys-
tem also enables the biggest postal
and carrier suppliers to be quickly
onboarded, so they can manage their
customs declarations more effectively
than the old solutions.
Apart from building the procedure sys-
tem, Netcompany has also trained
Toldstyrelsen’s Customs Officers in its
use – to make sure that the skills and
expertise are there to make the transi-
tion from paper-based to digital pro-
cedures as smooth as possible.
Drawing on 20+ years of
experience working with cus-
toms authorities and the EU,
Netcompany helped Told-
styrelsen deliver before the
deadline set by the European
Union Customs Code, requir-
ing all customs procedures to
be made digital by 2025.
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ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
People and talent of
Netcompany
The backbone of Netcompany is and has always been the
employees and the talents they possess. The complexity of
delivering best-in-class IT-solutions requires the top IT-talent
available and a continuing development of employees.
Talents
It is not only the individual employee’s
responsibility to utilise and develop their
talents, it is also up to Netcompany to cre-
ate an environment that allows each
employee, regardless of personal circum-
stances, (cultural background, ethnicity,
gender, sexual orientation etc), to thrive
and unfold their talent.
Creating the optimal environment for
employee’s talent utilisation is beneficial,
both to the company and for the individual
employee. Maximum talent utilisation con-
tributes to Netcompany’s primary goals –
“On time, budget and scope”.
Simultaneously, maximum talent utilisation
benefits the individual employee aiding
their personal development and growth and
building a strong platform for current and
future career and life.
Being a people and knowledge based com-
pany, the ability to retain talent is a key
objective. Therefore, Netcompany has built
a company culture that combines personal
growth, wellbeing, and the sense of belong-
ing with a best-in- class learning environ-
ment and a strong performance culture.
Netcompany
Academy is a well
structured merit
based career
development
programme
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ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
On-the-job
training
AcademyPeer to peer
Learning environment
Netcompany takes a threefold ap proach to
the employee learning environment.
On-the-job training
Utilising the knowledge and talent of
Netcompany employees and enabling them
to pass this on to new talents in
Netcompany, is an important strategic tool
to ensure a quick onboarding process and
minimising the time it takes before an
employee is ready to contribute to the
deliverance of the Group’s complex
IT-projects.
Netcompany has faith in new employees
and trust them to contribute from the
beginning, but no one is on their own in
Netcompany. Under the guidance of one of
the many masters in Netcompany, both new
and more senior employees will be learning
on the projects and continuing to develop
their IT skills and talents. As the knowledge
and skills of the employees develops, the
corresponding tasks, area of responsibility
etc. continuously changes to match the skill
level and to challenge employees to reach
the next level. This process is ongoing
throughout every employee’s career.
Peer to peer
Netcompany makes use of direct career
coaching from senior peers or managers.
Every employee is assigned a mentor, that
will support the mentee in their career
development and will make sure that the
mentee continuously improves and pre-
pares for the next career step.
The mentor provides a real-life visualisation
of the career opportunities in Netcompany
and through that provides career inspira-
tion for the mentee. The mentor will also
provide the mentee with a long-term
relationship with a senior colleague, that
can act as an anchor in a fast-paced and
continuingly expanding organisation.
Academy
The peer-to-peer and on the job training
does not stand alone. All Netcompany
employees are enrolled into the
Netcompany Academy. The purpose of the
Netcompany Academy is to support the
continuous development and progress
within the group and ensure that every
employee's IT-toolbox is equipped with the
necessary tools to solve every complex task
of the next generation IT-solutions.
Netcompany Academy is comprised of sev-
eral different learning modules. These
learning modules are designed in a way, so
that time and content are tailored to the
individual employee’s career progression
and are linked to the Netcompany career
models, career paths and specific roles.
Netcompany Academy plays a key role in
ensuring continuous career development
and progression for employees. The aim is
to align the academy progress to each indi-
vidual employees preferred pace, personal
interest and aspiration.
Centers of Excellence
Sharing of knowledge is something
Netcompany care about.
The Centres of Excellence are at the
very core of the organisation and
are professional communities where
best practices and solutions are
shared within a wide range of tech-
nologies, platforms and disciplines
with each other – across business
areas, projects and geographical
borders.
These knowledge sharing communi-
ties bring together different exper-
tise and know-how and functions as
a strategically important tool, that
strengthen cooperation and help to
propagate and shape the
Netcompany way.
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ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
Netcompany Culture
IT people leading IT people
At Netcompany, IT people lead IT people.
This unique aspect has been the root of
Netcompany's success and is something
that Netcompany is proud of. Netcompany
believe that people with an IT background
are the most qualified to steer IT projects
and ensure that the customers are satisfied
with the result.
Netcompany office location
Netcompany strongly believe in the value of
a modern and inclusive office location to
create a strong and inspiring working envi-
ronment. While also embracing a hybrid
working model including virtual teams,
Netcompany believe in the value of the
office location as an accelerator to build a
solid company culture.
Award high performers
Netcompany believe in awarding high per-
formers. If an employee makes a substantial
contribution to the deliverance of a project
and continuously show a high degree of
motivation, skill, ambition, and overall
embrace the Netcompany way and culture,
the employee should be awarded in
accordance with their contribution to the
Group.
Awarding high performers acts as motiva-
tion towards new and current employees,
by displaying that dedicated work pays off
and simultaneously functions as a retention
tool towards employees, since it is living
proof that dedicated work and achieve-
ments will be adequately rewarded.
Netcompany After Dark
It is Netcompany's belief that getting to
know each other outside of work will create
a better work environment with improved
cooperation and a high level of job satisfac-
tion.
Netcompany After Dark is the social clubs
of Netcompany. After Dark offers a wide
variety of clubs, that are created and run by
employees and Netcompany encourages
participation and creation of new clubs if
anyone is holding on to a bright idea.
People across departments get together to
play their favourite sport or plan and host
social event and parties, all the while creat-
ing long lasting connections and friend-
ships.
Employee Resource Groups
During 2022, Netcompany introduced
Employee Resource Groups (ERG). These
are voluntary, employee-led groups of
employees who share characteristics or life
experience – or are valued allies.
Netcompany aspires to drive inclusion and
belonging in the workplace, which was the
main reason for the creation of the ERG ini-
tiative.
This initiative will aid in the creation of a
more inclusive work environment by identi-
fying and addressing blind spots and areas
of improvement related to an inclusive
workplace. Each individual ERG is focused
on one specific area where a diversity and
inclusion perspective is applicable. This sin-
gle focus ensures that no areas are
neglected, and the adequate resources are
allocated to tackle any potential diversity
and inclusion concern, or improvement
identified by the ERG.
Global Mobility
Netcompany offer the opportunity
for employees to work abroad for
an extended period of time, while
fulfilling potential dreams of living
and working in a different country
and experiencing a new and excit-
ing culture.
While working abroad, employees
play a vital role in the Integration of
new acquisitions and the “integra-
tion” of the Netcompany way, thus
strengthening the cooperation
beyond borders in the Netcompany
Group.
With the acquisition of Intrasoft,
new territories were added to
Netcompany, and global mobility
plays a vital part in the integration
of these.
Our business
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ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
Building a greener future: DuboCalc calculates and
reduces the environmental impact of construction projects
Smarter solutions are a must for a greener tomorrow. To ensure more transparency and pave the
way for more sustainable solutions in construction projects, Netcompany is working with Rijkswa-
terstaat to manage, maintain and host DuboCalc: a tool used to calculate the impact of materials
and methods used in the construction lifecycle – from extraction to demolition and recycling.
Case story
Gerben Jimmick,
Business Information Manager,
Rijkswaterstaat
Rijkswaterstaat, the implementing
organisation of the Dutch Ministry of
Infrastructure and Water Management,
are responsible for the design, con-
struction, management and mainte-
nance of the Netherlands’ main infra-
structure facilities, including water,
roads and the environment.
Rijkswaterstaat is committed to sup-
porting a more sustainable living envi-
ronment – for a greener tomorrow. To
ensure more transparency and pave
“We look forward to our
continued collaboration with
Netcompany as they manage,
maintain and create further
developments of DuboCalc
– enabling users to evaluate
the sustainability and environ-
mental costs and choose the
most sustainable solutions.”
the way for more sustainable solutions
in construction projects, they have
developed DuboCalc: a software tool
that calculates the environmental
impact of material, a construction or
construction method. It calculates all
effects of material and energy from
cradle to grave.
Rijkswaterstaat uses DuboCalc as one
of the instruments for fulfilling the
BPKV sustainability criterion.
Rijkswaterstaat’s challenge is to make
sure the Environmental Cost Indicator
(MKI) calculations can be reproduced
accurately over the next 10 to 15 years,
no matter which version of DuboCalc
is used to generate them.
Over the next three years,
Netcompany will help Rijkswaterstaat
future-proof DuboCalc, by managing,
maintaining and hosting all the differ-
ent versions and advising on how to
build a new and improved platform.
Our business
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ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
In October 2021, Netcompany
acquired Intrasoft, having more
than 2,800 employees working
from 13 different countries with
Greece, Belgium and Luxembourg
as main markets.
Netcompany-Intrasoft in short
Netcompany-Intrasoft
A strong foothold for digitalisation to accelerate in Europe
Update on the largest acquisition in Netcompany Group
Strategic update
The strategic rationale behind the acqusi-
tion of Netcompany-Intrasoft remains
intact. During 2022, this has been demon-
strated through better opportunities to
enter/win tenders, even in markets with no
foothold. The improved joint competences
and capabilities have strengthened the
Groups market position and will over time
work as an accelerator to improve the
financial performance for the Group.
In 2022, the Group took advantage of the
expected sales synergies and entered large
EU projects, which would not have been
possible without the combined knowledge.
Joint projects
One of the strategic priorities in the
post-acquisition integration, is the engage-
ment into new joint projects between
Netcompany Core and Netcompany-
Intrasoft, and during 2022, several joint
projects between Netcompany Core and
Netcompany-Intrasoft were initiated. These
projects covers both private, public and EU
segments, some based on the product suite
described on page 25.
Platforms
With the inclusion of Netcompany-Intrasoft
additional platforms were introduced to the
Group. While Netcompany-Intrasoft contin-
ued utilising the platforms on their engage-
ments with existing customers,
Netcompany Core joined some of the teams
in further development of existing plat-
forms. Development of platforms is care-
fully chosen based on the overall Group tar-
get verticals and sales approach and driven
by the demand seen in the market.
Business practices
Working together on joint projects or tech-
nologies also presents opportunities for
improving business practices. During the
development and deliverance of
Netcompany’s best-in-class IT-solutions the
immense knowledge and best practices from
Netcompany-Intrasoft’s highly skilled
IT-people will be adopted and integrated into
the already established business practices of
Netcompany.
Netcompany-Intrasoft is well established in
delivering complex IT-Solutions within sev-
eral European markets, including the
European Union. This market position
needs, at the very least, to be maintained,
by utilising what is already working, while
the Netcompany Methodology is mainly
implemented on joint projects.
Update on the EU Recovery and
Resilience Facility (RRF)
With 25 out of 27 Member States recov-
ery and resilience plans endorsed by the
EU Commission and the Council, the
digital expenditure is estimated at 26%
of the total recovery and resilience facil-
ity (RRF). Hence the original target was
20% of the total RRF of EUR 723.8bn,
the actual plans add another EUR 40+bn
equal to DKK 300+bn to the digital
transformation to be spent between
2021 and 2026. Digital projects under
the RRF thereby increased from around
DKK 1,100bn to DKK 1,400bn.
In Greece, around DKK 20bn is sched-
uled to boost the digital transformation
of the public sector and close to DKK
2.8bn for digitalisation of businesses
over a five-year period. During 2022,
Netcompany has entered several con-
tracts under the RRF.
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Key trends
External
2022 was a challenging year for Europe with war
in Ukraine, energy supply constraints and high
inflation, all prompting an increased desire to
digitalise.
Digitisation and standardisation Green projectsInflationWar in Europe
Inflation in Europe has reached the
highest levels in decades as a result
of the pandemic and broken supply
chains. War in Ukraine has further-
more accelerated the global inflation-
ary pressure on energy and commod-
ity prices affecting all the markets
Netcompany is present in.
Increased consumer and energy
prices have not had any material
impact on Netcompany directly until
now. Looking into a recession in 2023
it is to be expected that both public
and private customers will reduce
spend to some degree at the same
time salaries and costs in general are
expected to be at elevated levels.
As the amount of data has "exploded"
in the past decade customers across
all industries are keen to make their
business more digitised to gain a bet-
ter insight into their own business and
customers. This has accelerated the
transition into more digitised indus-
tries seeking standardised and at the
same time flexible and scalable solu-
tions.
Netcompany accommodates the
demand with agile solutions and a
wide portfolio of plug and play solu-
tions in the Govtech Framework,
Composable Enterprise Framework
and further rapidly adaptable plat-
forms and products.
The dependency on energy and the
consequence when supply is reduced,
have accelerated the green transition,
which have increased the interest in
IT-projects and digitalisation. In addi-
tion, some customers require their
business partners or projects to be
“green”- either in a matter of more
energy efficient solutions or actual
ISO certifications.
Netcompany has always been looking
into the most energy efficient solu-
tions. In 2022, Netcompany entered a
sustainable linked loan tied up to ESG
KPIs and more than 80% of energy
spent was renewable. Currently,
Netcompany Denmark is in the pro-
cess of getting ISO 14001 certified.
The geopolitical tensions have
created the need for a trustworthy
European leader within IT services,
Netcompany is not represented in
Ukraine or Russia and thereby not
directly exposed to the invasion of
Ukraine, Netcompany has instead
been engaged in providing tangible
support to Ukrainian refugees fleeing
to Poland. Netcompany supported
HumanDoc in developing a case man-
agement system assisting specific
needs for refugees such as legalisa-
tion of stay, legal consulting, medical
support, social security, work permit
registration etc.
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Key trends
Internal
In 2022, Netcompany focused on completing the
integration of Netcompany Norway and UK, and
the continued turnaround of Netcompany Nether-
lands. In addition, focus on joint projects with Net-
company-Intrasoft accelerated during the year.
Go-To-Market approach Tax complianceSuperior IT leadershipIntegration methodology
IT people leading IT people is a guid-
ing principle in Netcompany and con-
stitutes a unique differentiator creat-
ing high value for customers. Skilled
and dedicated IT professionals are a
vital factor for Netcompany's contin-
uous ability to deliver high quality
solutions on time and on budget for
the operating markets.
Netcompany aims to become a stra-
tegic business partner for customers
by having skilled and dedicated IT
professionals leading the projects,
understanding the project both from
a technology and business perspec-
tive.
To ensure that Netcompany can scale
the delivery driven business model
and continuously fulfil high growth
expectations, Netcompany has initi-
ated the implementation on a new a
Go-To-Market approach.
With this approach Netcompany will
introduce target industries selected in
respect of the capacity and scalabil-
ity in each market and drive growth
through these.
Netcompany will reuse platforms and
products to the extent possible which
will facilitate scaling and lead to effi-
ciency gains.
Netcompany has an ambition to pro-
vide transparent information on our
tax approach and positions as taxes
are considered an important part of
our corporate social responsibility.
Netcompany strive to comply with
both global and local tax legislation
and act as a "Good Corporate Citizen"
from a tax payment perspective.
Implementation of the Netcompany
methodology is a prerequisite for the
success in Netcompany Core. By
cross utilising talents from the home
market into acquired entities,
Netcompany ensures that the career
development model, integrated sales
and decentralised management
approach and agile delivery driven
methodology will become the prime
way of doing business.
The methodology is also applied to
joint projects between Netcompany
Core entities and Netcompany
Expand.
Our business
33
ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
Outlook
2022 financial performance and 2023 guidance.
Financial performance against
guidance for 2022
With the acquisition of Intrasoft
International S.A in October 2021 a range of
detailed performance metrics were intro-
duced for 2022, with the ambition to create
full transparency of the performance of
Netcompany-Intrasoft as a standalone busi-
ness. During the year, more business than
anticipated was done as joint projects shift-
ing revenue and margins from Netcompany
Core to Netcompany-Intrasoft, making it
less relevant to view performance against
individual targets but rather focus on tar-
gets for the Group all together.
Financial metrics in constant currencies
Target
2023
Actual
performance
2022
Updated
target
Q3
Original
target
2022
Organic revenue growth in Netcompany Core
- 13.7% 14-16% 14-19%
Group organic revenue growth - 14.7% 14-16% 13-18%
Non-organic revenue growth - 37.8% 37-39% 35-38%
Group revenue growth 8-12% 52.5% 50-52% 48-56%
Adjusted EBITA margin from Netcompany Core - 21.1% 21-23% >23%
Adjusted EBITDA margin from Netcompany Core - 23.7% 23-25% >25%
Adjusted EBITDA margin in Netcompany-Intrasoft - 11.9% 9-11% >9%
Group adjusted EBITDA margin 15-18% 20.0% >20% >20%
Netcompany
reiterated guidance
in connection with
Q3 2022 report, well
within original
guidance.
52.5%
Revenue growth
in constant currencies
Group revenue grew by 52.5% in constant
currencies in 2022 – well within the guided
range of 48% and 56% as set out in the
beginning of the year, and slightly above
the narrowed guidance range between 50%
and 52% as communicated in connection
with the Q3 2022 report.
Group adjusted EBITDA margin in constant
currencies was slightly above 20% - also in
line with the original guided target of
above 20% as set out in the beginning of
the year and reiterated in connection with
the Q3 2022 report.
35
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
2023 EBITDA
guidance
Increase o
f
remuneration
2023
New HQ in
Copenha-
gen
New HQ in
Athens and
investment
into IT
platform
Fewer
working days
in 2023 in
DK, NO and
UK
New
"Go-To-Market"
approach -
resources and
marketing
2023 EBITDA
guidance
based on
2022 "like for
like"
2022 realised
EBITDA
margin
15-18%
1.5%
0.5%
0.5%
0.5%
0.5% 18.5-21.5%
20%
Expected margin for 2023 compared to realised 2022 margin
Guidance for 2023
The financial guidance for the Group for
2023 is based on an assumption that
Europe will be in a recession for part of the
year. While it is expected that the demand
for continued digitalisation of both societies
and enterprises will continue to be present
it is inherently difficult to predict timing of
new projects in a recession scenario, which
is reflected in our expectations for 2023.
It is also anticipated that the recession will
lead to more "wait and see" situations
related to decisions on when to initiate new
projects with our customers, which poten-
tially will have negative impact on revenue
growth and margin. It is further anticipated
that price adjustments will be lower than
underlying CPIs as a recessionary market
makes large 1:1 CPI-based price increases
difficult.
The Group does not expect any non-or-
ganic contribution to revenue growth or
margin for 2023.
Fewer working days in Denmark, Norway
and UK will have a negative impact on mar-
gin of around 0.5 percentage point.
Salary costs are expected to increase more
than normal as a combination of regular
salary increases and increase of variable
8-12%
Expected
revenue growth
remuneration. This will impact margin by
around 1.5 percentage points.
The move to a new corporate headquarter
in Copenhagen is expected to have a dilu-
tive impact on margin of around 0.5 per-
centage point.
The introduction of the new "Go-To-Market"
approach requires investments in 2023 and
is expected to impact margin negatively by
around 0.5 percentage point.
Investments into new office facilities for
Netcompany-Intrasoft and investment into
a common administrative IT infrastructure
for Netcompany-Intrasoft is expected to
impact margins negatively by around 0.5
percentage point.
Expected discontinuation of Netcompany-
Intrasoft in Africa and the Middle East is of
minor impact and is included in the guid-
ance.
For 2023, Netcompany expects to grow
revenue in constant currencies by between
8% and 12% and expect adjusted EBITDA
margin to be between 15% and 18%.
Free cash flow from operations is expected
to increase in absolute terms from the level
of 2022. Free cash flow will for all material
matters be used to deleverage the debt
ratio of 1.6x end of 2022 significantly.
The Group does not expect to initiate any
share buyback programmes or to pay out
dividends during 2023.
Netcompany's expectations for 2023
reflects an unprecedented uncertainty in
Europe, not only related to macroeconomic
factors but also to continued high uncer-
tainty regarding the geopolitical environ-
ment in Europe as well as globally, which
might have even further negative spillover
effects on Europe.
36
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
Switching energy suppliers smoothly:
enabling a more efficient and competitive
energy market in Britain
Case story
Angus Flett,
CEO of the
Data Communications Company
Switching energy suppliers has, for
many years, been a complex and slow
process in Britain. That is why Ofgem,
the independent energy regulator,
partnered with the Data
Communications Company to deliver
the Faster and More Reliable Switching
Programme, designed to make the
switching process quicker and more
consistent for consumers.
The Data Communications Company
appointed Netcompany as the Faster
Switching Programme’s SI in February
2019. The energy industry is complex,
with many stakeholders, and each has
its own challenges and objectives,
including different systems and ways
of handling data. We recognised early
on that the Faster Switching
Programme was not in itself overly
complex. However, the number of par-
ties involved created complexity.
Netcompany has helped to make sure
that all needs were considered, all
design and data issues were overcome
and ensured that solutions were work-
able.
Together with Ofgem and the Data
Communications Company,
Netcompany has created a solution that
ensures a more efficient switching of
suppliers, to the benefit of consumers.
The result is a fast-switching ecosystem
that has the potential to transform
Britain’s energy industry and put users
in control of their choice of supply.
“Next-day switching will
put consumers in the
driving seat whilst supporting
the digitisation of Britain’s
energy sector and helping the
country achieve its Net Zero
ambitions.”
Switching energy suppliers in Britain used to be a complex process. It often led to delays,
errors, frustrations and failure – which cost people money and led to a lack of trust.
Netcompany has helped transform the nation’s energy industry, making it faster and more
efficient to switch energy suppliers to the benefit of every household in the country.
Our business
37
ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
Performance overview DKK million
2022
(reported)
2022
(constant) 2021
Change
(reported)
Non-organic impact
from Netcompany-
Intrasoft S.A.
Change
(constant)
Revenue
5,544.6 5,538.9 3,632.0 52.7% 37.8pp 52.5%
Cost of service -3,772.2 -3,764.9 -2,298.7 64.1% 48.4pp 63.8%
Gross profit 1,772.5 1,774.0 1,333.3 32.9% 19.5pp 33.1%
Gross profit margin 32.0% 32.0% 36.7% -4.7pp -4.3pp -4.7pp
Sales and marketing costs -41.0 -41.0 -36.7 11.7% 13.4pp 11.7%
Administrative costs -763.9 -761.2 -503.4 51.7% 28.6pp 51.2%
Adjusted EBITA 967.6 971.8 793.2 22.0% 13.6pp 22.5%
Adjusted EBITA margin 17.5% 17.5% 21.8% -4.4pp -3.2pp -4.3pp
Special items 0.0 0.0 -37.7 -100.0% 0.0pp -100.0%
Other operating income 5.9 5.9 -0.2 -33.0pp -33.0pp 169.9pp
EBITA 973.5 977.7 755.3 28.9% 14.8pp 29.5%
EBITA margin 17.6% 17.7% 20.8% -3.2pp -3.1pp -3.1pp
Amortisation -134.1 -134.1 -51.4 160.7% 44.0pp 160.7%
Operating profit (EBIT) 839.4 843.7 703.8 19.3% 12.7pp 19.9%
Operating profit margin 15.1% 15.2% 19.4% -4.2pp -2.8pp -4.1pp
Net financials -69.9 -69.9 -33.4 109.4% 48.9pp 109.2%
Fair value adjustments of contingent
consideration -7.9 -7.9 78.9 -110.0% 0.0pp -110.0%
Income / loss from investment in joint
venture -5.9 -5.9 -21.7 -73.0% 0.0pp -73.0%
Income / loss, investment in associates 0.8 0.8 0.0 N/A 0.0pp N/A
Profit before tax 756.5 760.8 727.6 4.0% 10.1pp 4.6%
Ta x -153.8 -153.7 -153.3 0.3% 16.0pp 0.2%
Effective tax rate 20.3% 20.2% 21.1% -0.7pp 1.4pp -0.9pp
Profit 602.8 607.2 574.3 5.0% 8.5pp 5.7%
Netcompany-Intrasoft, acquired at 31 October 2021, is not fully included in the reported figures for 2021 and the impact from Netcompany-Intrasoft for the period 1 January 2022 until 31 October 2022 is shown in the table as
non-organic impact from Netcompany-Intrasoft, whereas impact from 1 November 2022 and onwards will be seen as organic impact.
Organically,
Netcompany
realised revenue
growth of 14.9%
and an adjusted
EBITDA margin of
20%
Financial overview
38
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
impacted by a number of events – some
externally driven and some internally driven
that all had a dilutive impact on both reve-
nue and margins. Irrespectively,
Netcompany recorded a 20% adjusted
EBITDA margin – also in line with initial
expectation set out for 2022.
Continued strong demand for digitalisation
services laid the foundation for continued
growth in the public segment across all
business areas, particularly in the UK, and
continued growth in the private segment,
particularly in Denmark.
Despite a challenging macroeconomic envi-
ronment for most of 2022 – driven by a
highly insecure geopolitical environment in
Europe throughout most of the year as well
as increased inflation with increased wor-
ries about recession in the second half of
the year, the demand for digitalisation pro-
jects has remained intact in broad terms.
Netcompany attracted more than 2,400
new employees to the Group in a labour
market that has seen a significantly
changed mood during the year. In the
beginning of the year employee churn was
high driven by a heated labour market,
which changed drastically in the second
half of the year leading to significantly
lower churn rates.
At the end of 2022 the Netcompany Group
totalled more than 7,500 highly talented
and skilled employees.
Gross profit margin for the year was 32%
compared to 36.7% realised in 2021. The
dilutive impact on gross profit margin from
Netcompany-Intrasoft was 4.3 percentage
points in 2022, as Netcompany-Intrasoft
has had a full year dilutive impact on Group
numbers in 2022 compared to only two
months for 2021. The remaining dilutive
impact on gross profit margin of 0.4 per-
centage point was driven by a combination
of employee benefits introduced in
Denmark and lower utilisation particularly in
Denmark and Norway compared to 2021,
whereas the performance in the UK to
some degree counteracted that impact. The
performance of the Dutch operation did not
have a material impact on gross profit mar-
gin for 2022.
Reduced variable remuneration for partners
and principals in Denmark, Netherlands and
Norway reduced cost and impacted margin
positively.
Sales and marketing costs increased by
11.7% to DKK 41m. The inclusion of
Netcompany-Intrasoft accounted for 13.4
percentage point of the increase, why sales
and marketing spend in Netcompany Core
decreased, which was more a result of cer-
tain one-off costs realised in 2021 than a
sustained lower spend going forward. The
increased spend was a result of the acceler-
ated awareness building of the Netcompany
brand throughout Europe and the increased
focus on the renewed "Go-To-Market" strat-
egy based on platforms focused on - and
targeting specific industries.
Administrative costs increased by 51.7% to
DKK 763.9m, of which the inclusion of
Netcompany-Intrasoft accounted for 28.6
percentage points. The remaining increase
was related to general underlying costs
driven by increased FTE's across Netcom-
pany Core. The reduction of variable remu-
neration for local management in Denmark,
Norway, Netherlands and Poland impacted
administrative costs positively (meaning
lower costs) in 2022.
Adjusted EBITDA margin was 20% for the
year compared to 24.3% in 2021. The lower
adjusted EBITDA margin was driven by the
inclusion of Netcompany-Intrasoft that had
a dilutive impact on margin of 3.1 percent-
age point and lower margin in Netcompany
Core for the remaining 1.2 percentage
points.
Depreciation was DKK 138.6m – an increase
of 57.9% compared to 2021. The inclusion of
20.0%
Adjusted
EBITDA margin
Netcompany Group
Revenue grew by 52.7% in 2022 (constant
52.5%) to DKK 5,544.6m. Organic revenue
growth was 14.9% and non-organic revenue
growth was 37.8% - in line with initial expec-
tations for 2022 of total revenue growth of
between 48% and 56%. The year was
39
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
Netcompany-Intrasoft accounted for DKK
38.9m of the increase. In addition, the relo-
cation to new corporate headquarters in
Copenhagen during 2023 resulted in a total
of DKK 30m in costs related to termination
and refurbishment of current head quarter,
which are to be depreciated over the termi-
nation period of six months, of which the
first DKK 5m was depreciated in December
2022.
Amortisation was DKK 134.1m compared to
DKK 51.4m in 2021. The amortisation of the
purchase price allocated to intangible
assets related to the acquisition of Intrasoft
International S.A in 2021 accounted for DKK
88.5m total amortisation in 2022.
Net financial costs for the year was DKK
69.9m compared to DKK 33.4m in 2021.
The increase was driven by higher interest
costs on the debt related to the acquisition
of Intrasoft International S.A for a full year
compared to only two months in 2021. In
addition, the interest rate on the debt
increased by 243bps end of 2022 compared
to end of 2021 driven by the increased
interest rate level during 2022.
A fair value adjustment of DKK 7.9m
impacted earnings negatively and reflected
an increase in the final purchase price of the
Dutch entity acquired in 2019.
Tax on profit for the year was DKK 153.8m
equivalent to an effective tax rate of 20.3%
compared to 21.1% for 2021.
Net profit for the year was DKK 602.8m
compared to DKK 574.3m for 2021, or an
increase of 5%.
Parent Company
The Parent company’s objective is as a
holding company to hold, directly or indi-
rectly shares. The assessment of the perfor-
mance within the Parents investments was
satisfying and in accordance with expecta-
tions. The Parent’s income statement for
the year ended 31 December 2022 resulted
in a loss of DKK 40.1m compared to a loss
of DKK 18.9m in 2021. The financial position
at 31 December 2022 showed an equity of
DKK 1,269.7m and total assets of DKK
5,242.8m compared to DKK 1,415.8m and
DKK 4,929m last year.
During 2021 and 2022, The Danish Business
Authority commenced a compliance review
of Netcompany Groups A/S' Annual
Reports for 2020 and 2021, please refer to
Note 1 for further information.
40
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
Future-proofing Denmark’s democracy
with a secure election process platform
Strong, stable societies are built on democratic foundations. Without this,
citizens cannot benefit from the fair and equitable practices that enable them
to participate fully in society. Netcompany is helping to secure Denmark’s
democratic future with a new election process platform.
Case story
Søren Kromann,
COO, KOMBIT
1 Denmark is ranked in the top three in the Electoral
Integrity Global Report 2019-2021
Danish democracy is among the high-
est rated in the world, with trust in free
and fair elections being particularly
high
1
. But Danish elections rely on an IT
platform that is almost 50 years old. To
maintain the outstanding standard of
democracy and ensure citizens’ trust, a
new modern and secure solution to
govern the electoral process was com-
missioned.
“Delivering and implementing
a new election system sup-
ports the Danish democracy
as it is a fundamental building
block of civil liberty. Stability,
transparency, and security are
of utmost importance. That is
why we have remarkably high
expectations for the quality of
the new system that Netcom-
pany is building.”
Netcompany is working closely with
KOMBIT and municipality users, to
build a new platform to provide secure,
transparent and efficient election pro-
cess support – from handling voter
lists and candidates to tabulating and
announcing results. The project will
also include an offline solution to be
installed at Denmark’s 1,500 polling
stations, which will enable a secure
voting process.
Netcompany will be testing the solu-
tion extensively in 2022-2023 before
rolling it out in 2024 across all 98
municipalities, five regions, the Ministry
of the Interior and Housing, and the
National Social Appeals Board.
Netcompany’s simple, secure and
robust solution for a new selection
platform will be used at the next
municipal and regional election in 2025
and beyond –securing Danish democ-
racy for years to come.
Our business
41
ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
Operating entities
Denmark
Norway United Kingdom Netherlands
Intrasoft
31.7%
Revenue growth
8.9%
Revenue growth
11.1%
Revenue growth
25.1%
Revenue growth
12.4%
Revenue growth (proforma)
29.3%
Gross profit margin
14.4%
Gross profit margin
42.8%
Gross profit margin
16.3%
Gross profit margin
20.3%
Gross profit margin
18.0%
Adj. EBITDA margin
-4.2%
Adj. EBITDA margin
30.2%
Adj. EBITDA margin
-11.3%
Adj. EBITDA margin
11.9%
Adj. EBITDA margin
505
Client facing FTEs
297
Client facing FTEs
2,659
Client facing FTEs
137
Client facing FTEs
2,856
Client facing FTEs
Netcompany Denmark grew
11.1%, negatively impacted by
sickness and allocating of
resources internationally.
Netcompany Norway grew by
8.9%, negatively impacted by
sickness and adjustments
made to three projects.
Netcompany UK grew by 31.7%
driven by the public sector, while
margin improved significantly due
to increased utilisation and activity.
Netcompany Netherlands grew
revenue by 25.1% solely driven
by the public sector, and
improved margin.
Netcompany-Intrasoft delivered
above expectations and
increased revenue by 12.4% (pro-
forma), and improved margin
42
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
Netcompany Denmark
Revenue in the Danish business unit grew
by 11.1% in 2022 to DKK 2,877.2m. Growth
was driven by both the public and private
segment that grew 9.7% and 13%, respec-
tively. Demand for Netcompany services
remain high and during the year new cus-
tomers were added whilst existing custom-
ers continued to increase their relationship
with Netcompany.
During the first half of 2022, Netcompany
experienced elevated levels of sickness and
churn rates higher than normal, which
impacted revenue growth negatively. Both
measures were improved though in the sec-
ond half of the year with sickness levels
coming down gradually, however still at an
elevated level, whereas churn rates have
dropped steeply as the uncertainty in the
macro-economic environment continues to
increase.
As in previous years a number of the Danish
resources work on international projects –
including the work related to establishing
an adequate pipeline in Sweden to support
opening of a Swedish office during 2023.
During the year the number of client facing
employees increased by 16.2% to 2,659.
2022 in constant currencies DKK million Denmark Norway
United
Kingdom
Nether-
lands Intrasoft Total
Revenue from external customers
2,877.2 291.0 535.4 102.7 1,732.7 5,538.9
Gross profit 1,231.4 41.8 156.9 16.7 351.3 1,798.2
Gross profit margin 42.8% 14.4% 29.3% 16.3% 20.3% 32.5%
Local admin costs -362.5 -54.1 -60.8 -28.4 -145.3 -651.3
Adjusted EBITDA before allocated cost
from HQ 868.9 -12.3 96.2 -11.6 206.0 1,147.0
Adjusted EBITDA margin before allocated
cost from HQ 30.2% -4.2% 18.0% -11.3% 11.9% 20.7%
Allocated costs from HQ -27.0 -3.0 -5.8 -1.4 0.0 -37.3
Special items, allocated 0.0 0.0 0.0 0.0 0.0 0.0
Depreciation -75.4 -7.3 -10.8 -5.5 -38.9 -137.8
Amortisation -77.4 -8.5 -15.6 -4.0 -28.6 -134.1
Other operating income 0.0 0.0 0.0 0.0 5.9 5.9
EBIT 689.0 -31.2 63.9 -22.6 144.4 843.7
Client facing FTEs. 2,659 297 505 137 2,856 6,453
2021 in reported currencies DKK million Denmark Norway
United
Kingdom
Nether-
lands Intrasoft Total
Revenue from external customers
2,590.4 267.3 406.7 82.1 285.6 3,632.0
Gross profit 1,126.2 65.3 105.9 9.9 55.3 1,362.5
Gross profit margin 43.5% 24.4% 26.0% 12.0% 19.4% 37.5%
Local admin costs -297.3 -40.2 -54.2 -23.9 -27.6 -443.3
Adjusted EBITDA before allocated cost from
HQ 828.8 25.1 51.7 -14.0 27. 6 919.2
Adjusted EBITDA margin before allocated cost
from HQ 32.0% 9.4% 12.7% -17.1% 9.7% 25.3%
Allocated costs from HQ -28.2 -3.4 -5.2 -1.5 0.0 -38.3
Special items, allocated -28.3 -3.5 -4.5 -1.5 0.0 -37.7
Depreciation -61.6 -6.0 -8.7 -5.2 -6.3 -87.8
Amortisation -37.5 -4.6 -6.7 -2.1 -0.5 -51.4
Other operating income 0.0 0.0 0.0 0.0 -0.2 -0.2
EBIT 673.3 7.7 26.6 -24.4 20.6 703.8
Client facing FTEs. 2,289 266 408 142 449 3,553
Figures in constant
currencies is meas-
ured by using the
monthly average
exchange rates for
2021.
Figures for
Netcompany-Intrasoft
only includes
performance in
November and
December 2021, as
Netcompany-Intrasoft
was acquired on
31 October 2021.
43
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
Gross profit margin for the Danish business
unit was slightly lower at 42.8% compared
to 43.5% in 2021. The elevated level of sick-
ness, and the employee benefits introduced
at the beginning of the year impacted gross
profit margins negatively. This was some-
what offset by the impact that the reduc-
tion in variable remuneration to partners
and principals had on salaries.
Adjusted EBITDA margin was 30.2% com-
pared to 32% in 2021. The lower gross profit
impacted naturally adjusted EBITDA mar-
gin, however the negative impact was to
some extent offset by the impact from the
reduced variable remuneration to local
management.
Netcompany Norway
In the Norwegian business unit revenue
grew 8.9% to DKK 291m in 2022. Revenue
growth was solely driven by growth in the
private segment, while growth in the public
segment was flat compared to 2021. As in
Denmark, the Norwegian business also
observed elevated levels of sickness
impacting revenue growth negatively par-
ticular in the first half of 2022. However, the
adjustment made to three projects in the
Norwegian project portfolio in Q2 was the
main factor for the lower than anticipated
growth in Norway.
During the year client facing employees
increased by 11.6% to 297.
Gross profit margin was 14.4% compared to
24.4% in 2021. The lower gross profit mar-
gin was mainly a result of the project
adjustments made in Q2. In addition, the
onboarding of 70 new employees during
Q3 had a dilutive impact on utilisation lead-
ing to lower margin.
Adjusted EBITDA margin was negative by
4.2% compared to 9.4% positive last year. In
addition to the gross profit impact, lower
variable remuneration impacted adjusted
EBITDA positively. However, these positive
impacts were offset by increased costs for
rent as a new headquarter and an office in
Trondheim was used for the full year.
Furthermore, redundancy costs impacted
adjusted EBITDA negatively in 2022.
Netcompany United Kingdom
Revenue in the UK business unit grew by
31.7% in 2022 to DKK 535.4m with underly-
ing growth of around 60% in the public
segment offset by negative growth in the
private segment. The growth in the UK
public segment was a result of continued
focus on getting a larger footprint with
fewer public segment customers and a
clear and conscious decision to
decommission some relationships in the pri-
vate segment that were not of strategic
importance to Netcompany.
Better pricing and higher utilisation sup-
ported the high growth that was further
accelerated by the increase in client facing
employees of 23.8% bringing the staff
count to 505 at the end of 2022.
Gross profit margin increased by 3.3 per-
centage points to 29.3% compared to 26%
in 2021. A high level of business develop-
ment in the UK business unit towards the
end of the year impacted gross profit mar-
gin negatively in the second half of 2022
compared to the first half of the year.
Adjusted EBITDA margin increased by 5.2
percentage points to 18% compared to
12.7% in 2021 – both as a result of the
improved gross profit but also as a conse-
quence of a high proportion of employees
working from home during the year post-
poning the need for a third office location.
Netcompany Netherlands
In the Dutch business unit revenue grew
25.1% to DKK 102.7m in 2022. All growth
was associated to the public segment as
that is the only segment currently served in
Netcompany Netherlands.
44
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
Gross profit margin improved by 4.3 per-
centage points from 12% in 2021 to 16.3% in
2022 driven by better utilisation and better
rates on projects.
Adjusted EBITDA also improved signifi-
cantly in 2022 from negative 17.1% in 2021 to
negative 11.3% in 2022. The improved gross
margin impacted EBITDA. Some of that
improvement was offset by redundancy
costs in the year.
Netcompany-Intrasoft
Revenue for Netcompany-Intrasoft grew by
12.4% in 2022 to DKK 1,732.7m compared to
DKK 1,542m (proforma). For the 2 months
of November and December organic reve-
nue growth was 26.3%. Revenue growth
was driven by the public segment including
the EU driven by continued strong demand
both in Greece and a number of institutions
within the EU. The business conducted in
the Middle East and Africa declined in vol-
ume during the year as a logical conse-
quence of the decision to divest this region
based on lack of strategic fit to the
Netcompany Group strategy.
While the total funding under the Resilience
and Recovery Facility for digitisation pro-
jects in Greece remain intact the timing of
getting projects approved has turned out
to be more cumbersome than expected.
However, during the second half of the year
and in particular towards the end of the
year projects have been approved and
awarded to Netcompany-Intrasoft, but with
a delay compared to initial expectations.
In addition, Netcompany-Intrasoft acceler-
ated revenue growth towards the end of the
year recognising income from software
licenses sold and from "pass-through" reve-
nue for equipment for one specific project.
Gross profit margin was 20.3% in 2022. The
delay in project awards under the RRF
impacted gross profit margin negatively in
2022, but was offset by better gross profit
margins in both the EU and private seg-
ment.
Adjusted EBITDA margin was 11.9% com-
pared to 9.4% in 2021 (proforma) driven by
an improved gross profit.
45
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
Transforming the world of mobility
from A to Z at record-winning pace
Netcompany is helping the largest importer and dealer of cars in Norway,
Sweden and the Baltics replace its 40-year-old system and launch their
digital transformation.
Case story
Møller Mobility Group (MMG) is the larg-
est and most successful importer and
dealer of Audi, VW, Skoda, Seat and
Cupra cars in Norway, Sweden and the
Baltics. They operate in five countries,
have 140+ dealerships, 4,000+ employ-
ees, 7,000+ IT users – and import more
than 53,400 cars each year.
But their business is being challenged.
New and existing mobility brands are
revolutionising the industry at an
increasing pace, and the race towards
the future of mobility is well underway.
MMG relies on a complex network of
legacy applications and mainframe sys-
tems. So, they’ve embarked on an ambi-
tious journey to transform their busi-
ness model, organisation and IT
platform to meet the demands of a
more digital and environmentally
friendly future.
As a strategic partner, Netcompany is
supporting them in all steps of DRIVe –
their programme for transformation and
are working at pace to decommission
their 40-year-old mainframe systems
and move MMG to a new, future-proof
system. The new platform will connect
and organise all data to give MMG bet-
ter customer insights; help MMG to dig-
itise and optimise internal processes;
enable fast onboarding of new, innova-
tive mobility service products and expe-
riences; and allow them to provide a
best-in-class customer experience.
“Netcompany is working at
pace to help Møller Mobility
Group in their digital trans-
formation, creating a modern
platform that will enable them
to provide a best-in-class
digitalisation streamlining
and automating their work
processes.”
Our business
46
ANNUAL REPORT 2022At a glance Performance review Governance Financial statements
Contractual
committed -
Netcompany Core
Contractual
committed -
Netcompany-Intrasoft
Non-contractual
commited
Total
2,890.1
1,414.0
1,256.6
219.5
7.6%
43.5%
48.9%
Public segment
(DKKm)
Private segment
(DKKm)
791.6
207.3
1,289.7
16.0%
22.6%
61.4%
290.9
Contractual
committed -
Netcompany Core
Contractual
committed -
Netcompany-Intrasoft
Non-contractual
commited
Total
Total segment
(DKKm)
2,205.6
426.8
4,179.9
10.2%
37.0%
52.8%
1,547.5
Contractual
committed -
Netcompany Core
Contractual
committed -
Netcompany-Intrasoft
Non-contractual
commited
Total
Order Backlog for Netcompany-Intrasoft
(DKKm)
To be realised
after 2023
To be realised
in 2023
Total
7,671.2
6,124.7
1,547.5
Revenue visibility
Revenue visibility improved by 9.3% from DKK 3,824.8m for
2022 to DKK 4,179.9m for 2023.
Netcompany measures revenue visibility on
a 12-month rolling basis, based on two main
input parameters, defined as total value of
committed engagements, which comprise
of fixed price engagements and service
agreements, and ongoing time and material
engagements with a high likelihood of con-
version and/or prolongation, defined as
total value of planned continued engage-
ments.
Revenue visibility for 2023 amounts to DKK
4,179.9m, of which contractual committed
revenue amounts to DKK 3,753.1m and
non-contractual committed engagements
amounts to DKK 426.8m.
Revenue visibility improved by 9.3% from
DKK 3,824.8m for 2022 to DKK 4,179.9m
for 2023.
The main part of
order backlog in
Netcompany-
Intrasoft relates to
EU framework
agreements and
runs up to 7 years
Revenue visibility for 2023 in the public
segment amounts to DKK 2,890.1m, of
which contractual committed revenue
amounts to DKK 2,670.6m and non-con-
tractual committed engagements amounts
to DKK 219.5m.
Revenue visibility for 2023 in the private
segment amounts to DKK 1,289.7m, of
which contractual committed revenue
amounts to DKK 1,082.5m and non-con-
tractual committed engagements amounts
to DKK 207.3m.
In 2023, DKK 1,547.5m is expected to be
released from the Netcompany-Intrasoft
order backlog, mainly within EU institutions.
Of the total order backlog for Netcompany-
Intrasoft DKK 6,123.7m is expected to be
released in the period from 2024 to 2029.
47
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
Cash flow development in 2021
(DKK’000)
Cash
primo
Operating
activities
Investing
activities
Financing
activities
Exchange
rates
Cash
ultimo
465.6
359.0
-1,254.5
882.4
6.3
458.8
Cash flow development in 2022
(DKK’000)
Cash
primo
Operating
activities
Investing
activities
Financing
activities
Exchange
rates
Cash
ultimo
773.0
458.8
-244.3
-646.0
-5.4
336.0
In 2022,
Netcompany
completed the
scheduled
refinancing of the
Group loan facilities
In 2021, Netcompany
acquired Netcompany-
Intrasoft and entered
into an additional loan
agreement to facilitate
the acquisition
Capital
Working capital
The combined value of work in progress,
prebilled invoices and trade receivables
increased by 5.4% compared to revenue
growth of 52.7% in 2022 and organic reve-
nue growth of 14.9%. As a percentage of
revenue, the combined work in progress,
prebilled invoices and trade receivables
decreased from 46.8% in 2021 to 32.3% in
2022, which was on same level as
Netcompany Core in 2021. Days sales out-
standing decreased from 103.7 days in 2021
to 73.2 days in 2022, which was also on
level with Netcompany Core in 2021.
Free cash flow and cash conversion
Netcompany generated a free cash flow of
DKK 602.7m, which led to a cash conver-
sion ratio normalised for tax payments and
fair value adjustment of 89.8% slightly
below the normalised cash conversion rate
in 2021 of 94.3%.
Investments and capitalisation
In 2022, the main part of the remaining
consideration for Netcompany-Intrasoft
was settled and Netcompany only have a
minor outstanding consideration in regard
to the acquisition.
In 2022, the Group capitalised cost of DKK
98m as internally developed software and
acquired rights and a full copy of the code
base of Airhart for DKK 20m from Smarter
Airports to be used in other industries.
Funding and capital structure
During 2022, Netcompany completed the
scheduled refinancing of current Group
debt to banks. The terms and margins
within the signed Group facility agreement
were slightly improved and also includes
ESG measures. The new Group facility
agreement consist of committed facilities of
DKK 2,800m and an additional facility of
DKK 2,000m, available only for new acqui-
sitions, the maturity for the loan run to 2025
and can be prolonged twice by one year.
As of 31 December 2022, DKK 1,880m of
the Group facility were utilised on borrow-
ings and DKK 148.9m on guarantees, leav-
ing a total of DKK 771.1m available in unuti-
lised funding for normal operation if needed
with no additional costs or covenants.
In addition, Netcompany-Intrasoft have
local facilities of DKK 47.3m and utilised
DKK 342.2m on local guarantees.
Debt ratio decreased during 2022 from 2.7x
at the end of 2021 to 1.6x end of 2022. The
peak in debt ratio last year was caused by
the acquisition of Intrasoft and have been
improved during the year due to the strong
cash flow.
48
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
The table below shows ESG key figures and
targets for Netcompany Group.
49
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
ESG report 2022
Read more about the ESG at
Netcompany here:
Link to ESG report
www.netcompany.com/int/ESG/Reports
50
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
December December December December DecemberJune
2018
June
2019
June
2020
June
2021
June
2022
Monthly turnover mDKK
OMXC25 (rebased)Netcompany
Monthly
turnover
mDKK
0
500
1.000
1.500
2.000
2.500
0
200
400
600
800
900
700
500
300
100
Per
share
of mDKK
Shareholder
information
In 2022, Netcompany redistributed DKK 100m in cash to
its shareholders through two share buyback programmes
of around DKK 50m each.
Netcompany share price development since IPO
The share
Netcompany shares were priced at DKK
294.2 (DKK 704.5) per share at 31
December 2022, equal to a market capitali-
sation of DKK 14,710m (DKK 35,225m). The
share price decreased by 58.2% during
2022, compared to the Nasdaq
Copenhagen blue chip index (OMXC25
CAP) which decreased by 13.5%.
Netcompany share price decreased despite
Netcompany delivering results in 2022
within guided expectations for the year.
Share related keys figures 2022 2021
Share price
Price at year-end (DKK) 294 705
Price high (DKK) 730 862
Price low (DKK) 279 519
Market value at year-end (DKKm) 14,710 35,225
No. of shares at year-end (m) 50.0 50.0
No. of circulating shares at year-end (m) 49.1 49.2
Distribution to shareholders
Dividend paid per share (DKK)
0 1
Total dividend paid ex, treasury shares (DKKm)
0.0 49.1
Buyback of shares (DKKm)
100.8 100.0
Total distribution to shareholders (DKKm) 100.8
149.1
Shareholder return at year-end
Share price change (%)
-58.2 13.2
Dividend return (%)
0.0 0.1
Total shareholder return (%) -58.2 13.2
Share valuation at year-end
Equity per share (DKK)
70.5 60.8
Price/book value (times)
4.2 11.6
51
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
56%
7%
13%
6%
6%
7%
5%
Shareholder structure
by geography
Denmark
US
Ireland
Luxembourg
Sweden
France
Rest of the world
21%
40%
25%
15%
Netcompany management
Pension funds
Other
Companies
Shareholder structure
by category
Share capital & treasury shares
Netcompany's share capital is DKK 50m
divided into 50 million shares. At the begin-
ning of 2022, Netcompany held 827,110
treasury shares. Throughout 2022
Netcompany executed two share buyback
programmes and bought 242,650 treasury
shares. 212,151 treasury shares were used to
remunerate Partners & Principals, as the
second Long Term Incentive Programme
vested in January 2022, and the final treas-
ury shares related to the acquisition of
Intrasoft in October 2021 was transferred
during 2022 as well.
As part of the acquisition of Intrasoft
International S.A, an agreement was made
for a senior executive to convert the
received cash element of the purchase price
into Netcompany shares with a four year
timely lock up period not related to employ-
ment, entailing certain possibilities to sell
shares in predefined tranches from 2022 to
2025 at the prevailing share price of the time
of the transaction. This option was exercised
in relation to the first tranche and executed
on 1 November 2022. Netcompany has in
that capacity acquired 44,539 treasury
shares directly from the senior executive.
At 31 December 2022, Netcompany holds a
total of 901,359 treasury shares equivalent
to 1.8% of the share capital. The treasury
shares will continuously be used to remu-
nerate Partners & Principals through the
Long Term Incentive Plan or in connection
with M&A transactions where applicable.
Additional information on the holdings of
Netcompany shares and restricted stock
units by the members of the Board of
Directors and Executive Management is dis-
closed in the Remuneration report and in
note 7 of the financial statements.
Increase of share capital
In the period until 21 May 2023, the Board
of Directors is authorised to increase the
company’s share capital with pre-emption
rights for the company’s existing sharehold-
ers by up to a nominal amount of DKK 10m.
However, the Board of Directors may not
exercise this authorisation for an amount
higher than 20% of the outstanding share
capital at the time of exercise of the author-
isation. The capital increase shall take place
at market price and shall be affected by
cash payment, by contribution in kind or by
debt conversion.
In the period until 21 May 2023, the Board
of Directors is also authorised to increase
the company’s share capital without
pre-emption rights for the company’s exist-
ing shareholders by up to a nominal amount
of DKK 5m. However, the Board of Directors
Shareholder Structure
by geography
Shareholder Structure
by category
may not exercise this authorisation for an
amount higher than 10% of the outstanding
share capital at the time of exercise of the
authorisation. The capital increase may take
place at a subscription price set by the
Board of Directors, including a potential
favourable price. Any new shares shall have
the same rights as the existing shares of the
company.
Shareholder structure
At 31 December 2022, Netcompany had
close to 25,000 (15,798) registered share-
holders. Around 44% (60%) of the regis-
tered share capital was held by sharehold-
ers based outside Denmark and around 10%
(10%) of the company’s share capital was
held by the company’s Executive
Management. Netcompany estimates that
52
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
pension funds held some 40% (53%) of the
company’s shares. In pursuance of section
55 of the Danish Companies Act the follow-
ing investors have reported holdings of
more than 5% of Netcompany’s share capi-
tal at 31 December 2022:
• AC NC Holding ApS: 10.3%
• Danske Bank A/S: 5.1%
Share-based incentive schemes/
restricted stock units
In total, 211,754 (351,170) RSUs in relation to
the share-based incentive schemes were
issued at 31 December 2022, of which
54,313 (83,053) were granted to Executive
Management and 157,441 (268,117) were
granted to Other Key Management
Personnel and Other employees. The fair
value of the RSUs at grant was DKK 98.3m
(DKK 102.7m). The cost related hereto is
expensed over the vesting period. A total
amount of DKK 24.9m (DKK 32.2m) was
recognised as staff costs in the income
statement in 2022.
Contingent purchase price/
restricted stock units
In connection with the acquisition of 100%
of the shares of QDelft B.V. (now
Netcompany Netherlands) in 2019, a total of
305,068 RSUs have been granted, which
Stock exchange Nasdaq Copenhagen A/S
Index OMXC25
Sector Technology
ISIN code DK0060952919
Short code NETC
Share capital DKK 50.000.000
Nominal size DKK 1
Number of shares No. 50.000.000
Restriction in voting rights No
18 January 2023
Deadline for shareholders to submit proposals for the
agenda of the Annual General Meeting 2023
25 January 2023 Annual Report for the financial year 2022
4 May 2023 Interim report for the first 3 months of 2023
16 August 2023 Interim report for the first 6 months of 2023
2 November 2023 Interim report for the first 9 months of 2023
Financial
calendar 2023
Share data
Recommendations on Corporate Governance:
https://www.netcompany.com/int/Investor-Relations
/Announcements
will vest in February 2023. Further 194,352
RSUs will be granted and vest in February
2023 as a result of the performance in the
period 2020-2022.
Dividends and share buyback
In 2022, Netcompany redistributed DKK
100m in cash to its shareholders by means
of two share buyback programmes of
around DKK 50m each. To maintain a satis-
factory debt level ratio no dividends are
currently proposed for the year 2022. In
2023, Netcompany expects to utilise free
cashflow to deleverage and hence have no
plans for proposing dividends or initiate
additional share buyback programs.
Investor relations
Netcompany seeks full transparency and an
open dialogue with all investors and ana-
lysts about the company’s business and
financial performance. Netcompany aims to
ensure equal, timely and adequate informa-
tion for all investors by publishing all infor-
mation on Netcompany's homepage, where
users can subscribe to Netcompany’s
announcement service.
53
ANNUAL REPORT 2022At a glance Our business Performance review Governance Financial statements
55
ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
In March 2022, Susan Cooklin
joined the Board of Directors,
which means Netcompany
has an equal distribution of
genders on the Board.
New board member in 2022
56
ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
Recommendations on Corporate
Governance:
www.netcompany.com/int/Investor-Relations/
Governance
57
ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
Read more
www.netcompany.com/int/Investor-Relations/Governance
58
ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
Board of
Directors
Bo Rygaard
Chairman
First elected 2016
1
Term 2022
Born (year) 1965
Nationality Danish
Independent Yes
Committee memberships
Nomination Committee and Remuneration
Committee
Executive positions
Executive officer in Margot og Thorvald
Dreyers Fond,
Bo Rygaard Consulting and NC ShareCo 4
ApS
Non-executive positions
Skamol A/S (c), Kavi Invest A/S (m), Margot
og Thorvald Dreyers Fond,
Ejendomsaktieselskabet Vest (m), Statens
Ejendomssalg A/S (vc), Fondenes
Videnscenter (m), Krista og Viggo
Petersens Fond (c), Marie & M.B. Richters
Fond (m), KFI Erhvervsdrivende Fond (c),
HusCompagniet A/S (m), KGH ApS (m),
WEXØE A/S (m), WEXØE Holding A/S (m),
and Sovino Brands ApS (c).
Special competencies
Strategy, general business management
and M&A
Educational background(s)
M.Sc. Economics, Copenhagen Business
School
Board meetings attended
9 out of 9
Committee meetings attended
4 out of 4
Juha Christen Christensen
Vice Chairman
First elected 2016
2
Term 2022
Born (year) 1964
Nationality Danish
Independent Yes
Committee memberships
Nomination Committee and Remuneration
Committee
Executive positions
CEO of Truly ApS
Non-executive positions
Cloud Made Ltd (c), Star Inc (c), Bang &
Olufsen A/S (c), Friday PM (c).
Special competencies
Consulting, technology market insight,
strategy, and M&A
Educational background(s)
Studied Business Administration, London
Business School
Board meetings attended
9 out of 9
Committee meetings attended
4 out of 4
1
Bo Rygaard has been a member
of the Board
of Directors of NC TopCo A/S
since November 2016
2
Juha Christensen has been a
member of the Board
of Directors of NC TopCo A/S
since November 2016
Hege Skryseth
First elected 2020
Term 2022
Born (year) 1967
Nationality Norwegian
Independent Yes
Committee memberships
Remuneration Committee
Executive positions
Executive Vice President of Equinor
Non-executive positions
Tomra Systems ASA (m), AutoStore (m)
Special competencies
Hege has extensive strategic and com-
mercial knowledge, general business
management and governance. Further,
Hege has deep knowledge about the
Norwegian market
Educational background(s)
Executive MBA, NHH Norwegian School
of Economics & Business Administration,
Norway. BA, Management, BI Norwegian
School of Management, Norway
Board meetings attended
7 out of 9
Committee meetings attended
0 out of 1
59
ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
Susan Cooklin
First elected 2022
Term 2022
Born (year) 1960
Nationality British
Independent Yes
Committee memberships
Audit Committee
Executive positions
None
Non-executive positions
Electricity North West Ltd, NorteGas ES,
Houses of Parliament Restoration and
Renewal Programme (UK).
Special competencies
Extensive C-suite executive experience at
FTSE 30 equivalent companies. Deep
knowledge and delivery of technology
strategies and operational delivery of com-
plex services. Experience of both private
and public sectors in the UK. Owned enter-
prise cyber risk for the UK rail infrastruc-
ture operation in her last executive posi-
tion.
Educational background(s)
BSc Economics and Accounting
Board meetings attended
8 out of 8
Committee meetings attended
4 out of 4
Board of
Directors
Åsa Riisberg
First elected 2020
Term 2022
Born (year) 1974
Nationality Swedish
Independent Yes
Committee memberships
Audit Committee
Executive positions
None
Non-executive positions
Bonnier News AB (m), Dagens Nyheter (m),
Bonnier Group (m), Chiesi Farmaceutici
S.p.A (m), Atlas Antibodies AB (c)
Internetmedicin AB (m), Patricia Industries
(m)
Special competencies
Åsa has extensive knowledge and experi-
ence in overseeing accounting and auditing,
financing, refinancing, M&A, private equity,
and healthcare
Educational background(s)
MSc, Finance & Accounting and Finance,
Stockholm School of Economics, Sweden.
International Business, Hautes Etudes
Commerciales HEC, France
Board meetings attended
8 out of 9
Committee meetings attended
6 out of 6
Scanes Bentley
First elected 2019
Term 2022
Born (year) 1957
Nationality British
Independent Yes
Committee memberships
Audit Committee and
Remuneration Committee
Executive positions
Managing Director, Scanes Bentley &
Associates (own portfolio management
company)
Non-executive positions
Twizzletwig Ltd (c), Northrow Ltd. (m)
Special competencies
Strategic and commercial knowledge,
technology market insight
Educational background(s)
B.Sc., Political Science, University of Bristol
Board meetings attended
9 out of 9
Committee meetings attended
6 out of 7
60
ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
Executive
Management
André Rogaczewski
CEO
Nationality Danish
Born (year) 1968
Executive positions:
André Rogaczewski Holding II ApS,
AR Creative ApS
Non-executive position:
Secury Payment Holding A/S (m), Smarter Airports
A/S (c)
1
, and Spar Nord Bank A/S (m)
Other positions:
The Danish ICT and Electronics Federation (c), the
Danish Disruption Council (m), Think Tank EUROPA
(m), the Technology Pact (c), the Danish
Foundation for Entrepreneurship (c), Confederation
of the Danish Industry (m), the Danish Ministry of
Finance’s Social Investment Fund (m), the
University of Aalborg (m), Health Tech Hub
Copenhagen (m), the Danish Government’s
Digitization Partnership (m)
Thomas Johansen
CFO
Nationality Danish
Born (year) 1970
Thomas Johansen is Chief Financial Officer in
Netcompany, a position he has held since he joined
the company in 2017. Thomas holds a M.Sc.
Auditing and Business Economics, and several
management degrees incl. MBA from Rotterdam
School of Management.
Claus Bo Jørgensen
COO
Nationality Danish
Born (year) 1967
Executive positions:
Holdingselskabet Claus Jørgensen II ApS, CJ CCP
Holding I ApS, and CJ CCP Holding II ApS (own
holding companies), and AC NC Holding ApS (joint
holding company between André Rogaczewski and
Claus Jørgensen)
Claus Jørgensen is a co-founder of Netcompany
and Chief Operating Officer since 2000. He holds a
M.Sc. Economics from the University of Southern
Denmark
1
Smarter Airports A/S
is the Joint-Venture
between Netcompany
and Copenhagen
Airports
61
ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
Remuneration
Netcompany’s remuneration package and
structure have been assessed as appropriate
and complying with Netcompany’s ambition.
The Remuneration Policy of Netcompany
aims to set market-based salary levels for
the Board of Directors (BoD) as well as
Executive Management (EM) with a clear
link to the creation of long term shareholder
value. The current remuneration packages
were adopted by the Annual General
Meeting on 2 March 2022.
The remuneration package consists of the
elements shown on the right.
Remuneration assessment
The Remuneration Committee performed
an assessment of management remunera-
tion, and concluded that the Remuneration
Package and Policy complies with the
Corporate Governance recommendations
updated on 2 December 2020. The remu-
neration awarded was furthermore in line
with the remuneration policy.
Read the Remuneration Report
https://www.netcompany.com/int/
Investor-Relations/Governance
Remuneration BoD EM Comments
Fixed fee / Fixed base salary
Fee for committee work
Fee for Audit Committee, Remuneration Committee and
Nomination Committee work
Short Term Incentive Plan
Up to 60% of fixed base salary against defined objectives and
target
Long Term Incentive Plan
Up to 80% of fixed base salary measured at the time of grant
Travel allowances and other expenses
Travel expenses are reimbursed
Benefits
Company car, phone etc. comprising up to 10% of fixed base
salary
Severance pay
In accordance with the employment contract, the Executive
Management cannot request a severance payment
Ekstraordinary Remuneration (MSP)
The Board of Directors may extraordinarily
grant mathcing shares
Remuneration Report 2022
Read more about the examined
Remuneration of Netcompany
Both the
Remuneration Policy
and the remunera-
tion packages for
the Board of
Directors were
approved by the
Annual General
Meeting in March
2022.
The approved
remuneration
package consists of
the elements shown
on the right.
62
ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
Board of Directors
The base fee for board members was
changed to DKK 450k in 2022, which was
an increase of 28%.
When comparing the increased remunera-
tion for the Board of Directors with the
average remuneration for Board of Director
in the C25 benchmark, the base fee as well
as committee fees level for Board members,
Chairman and Vice-Chairman was in the
same range as the average remuneration of
the C25 companies and hence, the board
fee's are suggested to remain unchanged.
Executive Management
Total salary levels for Executive Mangement
is in the lower end of the C25 benchmark.
Compared to other C25 companies, a larger
part of the remuneration to the Executive
Management is variable and part of an
incentive plan. This relates to both short
and long term incentive plans. At the same
time the fixed absolute annual remuneration
is amongst the lowest in the C25 bench-
mark.
Total remuneration for the Executive
Management was significantly lower in
2022 as the variable part of the remunera-
tion was reduced to nil regarding STIP and
the payout of the already granted LTIP was
reduced significantly too.
5 year key figures DKK '000 2022 2021 2020 2019 2018
Remuneration of Board of Directors
Bo Rygaard, Chairman 1,372 1,050
1,051 661 438
Juha Christensen, Vice Chairman 979 788
763 624 502
Scanes Bentley 730 438
489 394 -
Hege Skryseth 565 350
128 - -
Åsa Riisberg 779 525
199 - -
Susan Cooklin 525 -
- - -
Robbert Kuppens
1
- -
296 168 -
Pernille Fabricius
1
- -
179 855 546
Pekka Ala-Pietilä
1
- -
- 730 1,057
Thomas Broe-Andersen
1
- -
- 0 0
Carsten Gomard
1
- - - 637 1,000
Remuneration of Executive Management
André Rogaczewski, CEO
8,242 11,188
10,760 10,632 7,778
Claus Jørgensen, COO
8,265 11,247
10,929 10,502 7,990
Thomas Johansen, CFO 4,535 6,415 6,002 5,920 5,793
Financial Measures, Netcompany Group
Revenue
5,544,646 3,631,971
2,838,590 2,453,853 2,053,216
Organic Revenue
4,172,773 3,346,387
2,812,433 2,416,493 1,777,506
Adjusted EBITDA margin
20.0% 24.3%
28.5% 27.5% 27.0%
Adjusted EBITA margin
17.5% 21.8%
26.2% 25.2% 25.0%
Average FTEs in Group
6,906 3,787
2,768 2,293 1,861
Average pay for company employees
2
454 548
561 533 510
CEO pay ratio 1:18 1:20 1:19 1:20 1:15
1
Retired from the Board of Directors
2
Average pay excluding Board of Directors and Executive Management
63
ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
Risk Management
Risk management is anchored locally under
the guidelines and methodology set out by
the Board of Directors.
Risk management has always been an inte-
gral part of doing business in Netcompany.
Whether it be entering new business lines,
onboarding new customers, embracing new
technologies or ensuring new employees
understand and adhere to the Groups risk
management, the philosophy has always
been to anchor responsibility locally with
the operational units based on methodol-
ogy and processes defined centrally.
With expansion into new business areas and
with increased business complexity the nat-
ural inherent risk in the Group has increased
during the past years. Entering into mul-
ti-year development contracts, running mis-
sion-critical infrastructure and expanding
coverage to new countries, naturally
increases the need for a more comprehen-
sive Risk Management Framework.
Netcompany continuously improves the
Risk Management Framework with the aim
of strengthening management of risks
across the Group.
Risk Management Framework
The overall process for the risk
reporting can be illustrated as below:
Projects, Services
and Operations
• A list of top risks on
projects, services
and operations are
identified based on
input from Managing
Partners
• Top list is approved
by Management
• The top risk projects
are assessed and
documented quarterly
in the risk report
Information
security
• A list of top risks on
information assets
and technologies are
identified based on
input from the Chief
Information Officer
• Top list is approved
by Management
• The top risk projects
are assessed and
documented quarterly
in the risk report
Shared
services
• A list of top risks
related to shared
services are identified
across support
functions, based on
interviews and
consolidation of risks
from the head of
Finance, Legal, HR, IT
and M&A
• Top list is approved by
Management
• The top risk projects
are assessed and doc-
umented quarterly in
the risk report
Credit, cash manage-
ment and interests
• A list of top risk
concerning financial
risks are identified
across all countries
based on input from
Finance and external
banks
• Top list is approved by
Management
• The top risk projects
are assessed and
documented quarterly
in the risk report
Projects, Services
and Operations
• A list of top political
and reputational risks
are identified based
on interviews with
executive
management
• The top risk projects
are assessed and
documented quarterly
in the risk report
RISK REPORT
64
ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
Probability of occurence
Severity of impact
Not able to attract and retain talent
1
1
Growth through acquisitions
2
Loss of existing clients
3
Unable to generate new business
4
Cyberattack
5
General dataprotection regulation
6
2 3
4 5
6
Overview of top risks after mitigations
The framework consists of a Risk
Governance structure, defining the overall
roles and mandates across Netcompany.
Each quarter, the main risks and accompa-
nying mitigating actions are presented to
the Audit Committee and Board of
Directors, who discuss the overall risk level
for the Group and ensures that Executive
Management implements mitigating
actions, if required, and continuously over-
sees the net risk exposure of the Group.
The number of main risks within the Group,
assessed quarterly by the Audit Committee
and Board of Directors, vary but is gener-
ally between 25 and 35. These risks all fall
within the main areas as described above.
The following pages give an overview of
Netcompany’s key risks, including root
causes and mitigation actions taken
throughout the Group in 2022.
Not able to
attract
and retain talent
Growth through
acquisitions
Loss of
existing clients
Unable to
generate new
business
Cyberattack
General data
protection
regulation
Lack of quality in deliveries
Competitive landscape
Political landscape
Market changes/global economic trends
Hacking/cybercrime
Complex contract regimes
Mitigating actions
Heatmap of top risks
The heatmap is used in the
quarterly risk assesment
65
ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
Root cause
Netcompany is built on talent and as an IT
services company, future growth is directly
linked to the ability to continuously attract,
develop and retain talent.
Failure to continue to grow the employee
base will limit the growth opportunities.
Further, the progression of newly hired
consultants to become managers, princi-
pals and eventually partners represents an
equally high risk, as the continued develop-
ment of the hierarchy is also a prerequisite
for future growth.
Risk
Losing the close relationship with universi-
ties and other institutions may lead to a less
favourable perception of Netcompany
among graduates, thereby reducing the
applicant pool for new hires.
A discontinuation of the Netcompany
Academy may lead to fewer new applicants
wanting to apply as career progression
would be perceived as limited.
Further, the lack of ongoing development
of talented people may lead to loss of more
experienced consultants, which in turn will
have a negative impact on Netcompany’s
ability to hire new graduates, as the senior
consultant and manager level in the career
pyramid is crucial for continued growth.
Mitigating actions
Continued building and maintaining rela-
tionships with leading universities in all
countries where Netcompany is repre-
sented.
Continued funding for the Netcompany
Academy. In case of potential short term
declines in revenues, the Academy will be
one of the last resorts for spending cuts as
it is a key pillar for continued growth.
Established presence in other countries
with large pools of available relevant IT pro-
fessionals.
Introduction of improved employment ben-
efits including a significant improvement to
the parental leave benefits.
Root cause
A key part of Netcompany´s growth strat-
egy is to expand into new countries
through acquisitions.
Risk
Integration of acquired companies into the
Netcompany Core delivery model may be
delayed leading to sub optimal perfor-
mance. The integration projects are typi-
cally extensive and lengthy and may lead to
project fatigue leading to increased
employee dissatisfaction.
Larger acquisitions – like Intrasoft – may
introduce new risks into the Group and/or
accelerated risk taking in the acquired
company in general.
Further, the decision taken not to integrate
an acquired company fully into the
Netcompany Core delivery model may lead
to continued risk taking in the acquired
company.
For both types of acquisitions, a general
risk is that of losing key customers, key
employees, exposure towards litigation and
loss of reputation following bad projects.
Further the ongoing operation of Intrasoft’s
current business as a ”stand alone” could
lead to increased exposure on larger
projects where the Group would not be
able to support in crisis situations as those
projects are delivered using different deliv-
ery models.
Mitigating actions
In any acquisition detailed due diligence
will be conducted. When applicable, the
transaction will be insured. Also, payment
of substantial parts of the valuation will be
based on future performance and paid only
when such performance is met.
Continuous focus on achieving the goals of
the integration through a structured pro-
cess, including allocating Netcompany
resources into external projects and inter-
nal process during the integration.
In addition, Netcompany and Intrasoft
already had a long standing working rela-
tionship and have delivered projects
together which has added valuable knowl-
edge about the Intrasoft organisation into
Netcompany.
Not able to attract
and retain talent
Growth through
acquisitions
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ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
Root cause
More than 90% of Netcompany’s business
is generated from existing customers at the
beginning of the year. Maintaining the cur-
rent level of repeat customer revenue is
thus a prerequisite for the continued
growth of Netcompany.
Risk
Failing to meet the target of being ”on time,
on budget and in scope” may lead to loss of
both reputation and repeat business with
existing clients. Further, some contracts –
particular in the public segment – include
terms whereby the potential liability related
to a project or ongoing maintenance of a
solution developed is uncapped, which
could lead to significant financial losses for
Netcompany.
Mitigating actions
Ensuring that projects are monitored and
assessed on an ongoing basis so that
potential issues and problems are identified
before they escalate.
The Netcompany project methodology
ensures that no new solution is taken into
production without written approval of the
solution and test from the client. This also
applies to upgrades, change request and
changes to the solution taken into produc-
tion in general. These mitigating factors
ensures that while contracts from time to
time have uncapped liabilities as part of the
terms, the mitigated risk exposure is limited
and of theoretical substance only.
Root cause
New customers in new segments and new
markets are an integrated part of
Netcompany´s growth strategy, and a lack
of new business being added continuously
would impact Netcompany´s longer term
growth trajectory.
Risk
Failing to meet the target of being “on time,
on budget and in scope” may lead to loss of
reputation in the market hindering
Netcompany’s ability to generate new busi-
ness.
Inability to answer tenders and business
requests due to resource constraints may
lead to a perception in the market that
Netcompany is not able to deliver on the
committed obligations.
Mitigating actions
Ensuring that projects are monitored and
assessed on an ongoing basis so that
potential issues and problems are identified
before they escalate.
Continued allocation of sufficient time for
senior staff to conduct “business develop-
ment” and allowing time to be used for
answering tenders and business requests
to ensure that a healthy pipeline is main-
tained at all time.
Loss of
existing clients
Unable to generate
new business
67
ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
Root cause
As Netcompany is hosting solutions for
customers, cyberattacks will always be a
potential risk, which Netcompany has the
responsibility to ensure adequate protec-
tion against. The customer base and the
types of services delivered are rising in crit-
icality and exposure, which may lead to an
increase in the risk of cyberattacks.
Risk
Cyberattacks, including unauthorised
access to network and data, could poten-
tially damage the reputational image.
System down time also includes attacks
due to a breach or leak at the external sup-
plier. Unexpected down time for a system
could result in data breach, loss of custom-
ers and increased costs for Netcompany
and its customers.
Mitigating actions
Netcompany has various controls imple-
mented to handle both internal and exter-
nal risks, including storage platforms with
georedundant mirroring capabilities as well
as established backup procedures for inter-
nal system failure.
External suppliers to Netcompany are
obliged to deliver an ISAE 3402 Type II
audit statement to Netcompany annually to
ensure compliance for the external suppli-
ers.
Netcompany continuously access the level
of security in both its solutions and internal
IT environments.
Root cause
The general data protection regulation
(GDPR) was implemented in May 2018 with
the purpose of protecting EU citizens' pri-
vacy. The regulation sets forth the require-
ments for processing personal data.
Netcompany provides IT solutions to both
private and public customers, which
involves personal and sensitive data.
Risk
Netcompany must at all times be compliant
with all requirements, and it is crucial that
no information leak or breach can occur.
If Netcompany is unable to demonstrate
compliance with GDPR or in the unlikely
event, that there is a breach of personal
data, Netcompany could potentially be
fined and will suffer reputational damage.
Mitigating actions
At the beginning of 2018, Netcompany
implemented and communicated an inter-
nal data privacy policy including a method-
ology framework. Furthermore, security
policies including security technology, to
ensure effective protection, has been
implemented.
In 2020, Netcompany adopted a data eth-
ics policy to further ensure the interface of
handling all data in all matters.
Cyberattack General data
protection regulation
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ANNUAL REPORT 2022At a glance Our business Performance review Financial statementsGovernance
Financial statements – Group
Notes to the consolidated financial statements
Note Accountingpolicies
Note Effectofthechangeinaccountingpolicies
Note Tradereceivables
Note Contractworkinprogress
Note Cashandcashequivalents
Note Sharecapital
Note Earningspershare
Note Borrowings
Note Pensionobligations
Note Otherpayables
Note Provisions
Note NonCashitems
Note Workingcapitalchanges
Note Financialrisksandfinancialinstruments
Note Financialliabilities-maturityanalysis
Note Fairvaluehierarchy
Note FeetotheGroupauditor
Note Relatedparties
Note Collateralprovidedandcontingentliabilities
Note AdoptionoftheAnnualReportforpublication
Note Eventsafterthebalancesheetdate
Note Segmentinformation
Note Costofservices
Note Salesandmarketingcosts
Note Administrativecosts
Note Staffcostsandremuneration
Note Specialitems
Note Otheroperatingincomeloss
Note Depreciationandamortisation
Note Financialincomeandexpenses
Note Tax
Note Incomestatementclassifiedbyfunction
Note Goodwill
Note Otherintangibleassets
Note Businesscombinations
Note Investmentproperties
Note Othertangibleassets
Note Investmentinjointventure
Note Financialassetsatfairvaluethroughother
comprehensiveincome
Note Assetheldforsale
Content
Statement of comprehensive income 71
Statement of financial position 72
Statement of changes in equity 73
Cash flow statement 74
ParentCompanyfinancialstatements
Managementstatement
Independentauditorsreport
Section 4: Working capital & Capital structure
Section 5: Other disclosures
Section 1: Basis of preparation
Section 2: Result for the year
Section 3: Invested capital
70
Financial statements ANNUAL REPORT 2022At a glance Our business Performance review Governance
Statement of comprehensive income for the Group for 2022
DKK’000 Notes 2022 2021
Revenue 3 5,544,646 3,631,971
Cost of services 4 -3,772,174 -2,298,687
Gross profit 1,772,472 1,333,284
Sales and marketing costs 5 -41,008 -36,715
Administrative costs 6 -763,881 -503,399
Special items 8 5 -37,729
Other operating income / loss 9 5,903 -184
EBITA (non-IFRS) 973,491 755,256
Amortisation 10 -134,073 -51,424
Operating profit (EBIT) 839,417 703,833
Financial income 11 30,341 10,259
Financial expenses 11 -100,261 -43,648
Fair value adjustment of contingent consideration 16 -7,874 78,906
Income / loss from investment in joint venture 19 -5,873 -21,732
Income / loss from investment in associates 790 0
Profit before tax 756,541 727,618
Tax on profit for the year 12 -153,790 -153,316
Profit for the year 602,752 574,302
Of which
Non-controlling interest -617 -1,840
Netcompany Group A/S’ share 603,369 576,142
Earnings per share (DKK) 26 12.27 11.73
Diluted earnings per share (DKK) 26 12.15 11.59
DKK’000 Notes 2022 2021
Other comprehensive income Items that may be reclassified subsequently to profit or loss:
Exchange rate adjustments on translating foreign subsidiaries -8,011 10,792
Income / loss from financial assets recognised at fair value 20 0 0
Other comprehensive income Items that may not be reclassified to profit or loss:
Actuarial profit / loss on defined benefit plans 28 410 0
Other comprehensive income / loss -7,602 10,792
Of which
Non-controlling interest 208 415
Netcompany Group A/S’ share -7,810 10,378
Comprehensive income for the year 595,150 585,095
Of which
Non-controlling interest -409 -1,425
Netcompany Group A/S’ share 595,559 586,520
71
Financial statements ANNUAL REPORT 2022At a glance Our business Performance review Governance
Statement of financial position of the Group at 31 December 2022
DKK’000 Notes 2022 2021
Goodwill 14, 16 3,372,453 3,372,453
Other intangible assets 15, 16 507,410 523,746
Intangible assets 3,879,863 3,896,198
Investment properties 17 2,477 2,477
Other tangible assets 18 329,680 314,418
Tangible assets 332,158 316,895
Investment in joint venture 19 97,360 103,233
Investment in associates 8,001 7,211
Other securities and investments 20 1,324 2,102
Other receivables 54,932 26,225
Deferred tax assets 12 32,742 17,391
Financial assets 194,359 156,162
Non-current assets 4,406,380 4,369,255
Trade receivables 22 1,111,954 1,031,880
Receivables from joint venture 9,984 7,311
Receivables from associates 16,369 16,369
Contract work in progress 23 1,114,527 1,019,974
Other receivables 38,276 39,557
Prepayments 124,410 74,900
Tax receivable 12 35,964 0
Receivables 2,451,483 2,189,992
Cash 24 336,048 458,779
Current assets 2,787,531 2,648,771
Assets classified as held for sale 21 0 3,123
Assets 7,193,911 7,021,150
DKK’000 Notes 2022 2021
Share capital 25 50,000 50,000
Treasury shares -313,287 -241,409
Share-based remuneration 54,226 70,177
Exchange rate adjustments on translating subsidiaries -1,635 6,584
Retained earnings 3,730,977 3,145,769
Other reserves 410 0
Equity attributable to Netcompany Group A/S 3,520,691 3,031,121
Non-controlling interests 6,180 6,796
Equity 3,526,870 3,037,918
Borrowings 27 1,872,372 2,275,788
Pension obligations 28 13,772 18,198
Lease liability 180,514 147,979
Other payables 29 0 94,498
Deferred tax liability 12 110,992 134,255
Non-current liabilities 2,177,650 2,670,719
Borrowings 27 47,314 74,497
Pension obligations 28 5,829 0
Lease liability 85,420 98,645
Prebilled invoices 23 433,498 350,880
Trade payables 265,196 328,496
Other payables 29 640,582 446,006
Provisions 30 11,550 8,839
Income tax payable 12 0 5,150
Current liabilities
Liabilities associated with assets classified as held for sale 21 0 0
Liabilities 3,667,040 3,983,233
Equity and liabilities 7,193,911 7,021,150
72
Financial statements ANNUAL REPORT 2022At a glance Our business Performance review Governance
Statement of changes in equity for the Group for 2022
DKK’000
Share
capital
Treasury
shares
Share-based
remuneration
Exchange rate
adjustments on
translating
subsidiaries
Retained
earnings
Other
reserves
Total equity,
Netcompany
Group A/S
Non-
controlling
interests
Total
equity
Equity at 1 January 2022 50,000 -241,409 70,177 6,584 3,145,769 0 3,031,121 6,796 3,037,918
Profit for the year 0 0 0 0 603,369 0 603,369 -617 602,752
Other comprehensive income / loss for the year 0 0 0 -8,219 0 410 -7,810 208 -7,602
Total comprehensive income 0 0 0 -8,219 603,369 410 595,559 -409 595,150
Treasury shares acquired in the year 0 -111,472 0 0 -20,016 0 -131,487 0 -131,487
Treasury shares used in business combinations 0 171 0 0 388 0 559 0 559
Share-based remuneration for the year (note 7) 0 39,423 -15,952 0 1,411 0 24,882 0 24,882
Movement of non-controlling interest 0 0 0 0 0 0 0 -207 -207
Total transactions with owners 0 -71,878 -15,952 0 -18,217 0 -106,046 -207 -106,254
Equity at 31 December 2022 50,000 -313,287 54,226 -1,635 3,730,977 410 3,520,691 6,180 3,526,870
Equity at 1 January 2021 50,000 -175,000 42,478 -3,793 2,514,936 0 2,428,621 0 2,428,621
Profit for the year 0 0 0 0 576,142 0 576,142 -1,840 574,302
Other comprehensive income / loss for the year 0 0 0 10,378 0 0 10,378 415 10,792
Total comprehensive income 0 0 0 10,378 576,142 0 586,520 -1,425 585,095
Treasury shares acquired in the year 0 -99,993 0 0 0 0 -99,993 0 -99,993
Treasury shares used in business combinations 0 29,091 0 0 103,791 0 132,882 0 132,882
Share-based remuneration for the year (note 7) 0 4,493 27,699 0 0 0 32,192 0 32,192
Dividend paid 0 0 0 0 -50,000 0 -50,000 0 -50,000
Dividend on treasury shares 0 0 0 0 900 0 900 0 900
Addition of non-controlling interest (note 16) 0 0 0 0 0 0 0 8,221 8,221
Total transactions with owners 0 -66,409 27,699 0 54,691 0 15,981 8,221 24,203
Equity at 31 December 2021 50,000 -241,409 70,177 6,584 3,145,769 0 3,031,121 6,796 3,037,918
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Cash flow statement for the Group for 2022
DKK’000 Notes 2022 2021
Operating profit (EBIT) 839,417 703,833
Depreciation and amortisation 10 272,653 139,201
Non-cash 31 14,382 43,685
Working capital changes 32 -59,320 -189,249
Income taxes paid -234,084 -197,489
Financial income received 7,285 2,914
Financial expenses paid -67,328 -37,298
Cash flows from operating activities 773,005 465,597
Cash outflow on acquisition of subsidiaries 16 -50,011 -1,270,938
Cash and cash equivalents at acquisition date of subsidiaries 16 0 132,415
Investment in joint venture 19 0 -55,000
Capitalisation of intangible assets -98,046 -11,304
Acquisition of intangible assets 37 -20,000 0
Acquisition of fixed assets -52,211 -46,246
Disposals of fixed assets 477 2,321
Other receivables (deposits) -28,927 -5,731
Other investments/divestment 4,432 0
Cash flows from investing activities -244,286 -1,254,484
Dividends paid 0 -49,100
Payments of treasury shares -131,487 -99,993
Proceeds from borrowings 2,182,836 1,700,545
Repayment of borrowings -2,610,033 -612,076
Repayment of leasing debt -87,332 -56,988
Cash flows from financing activities -646,017 882,388
Increase in cash and cash equivalents -117,298 93,501
Cash and cash equivalents at 1 January 458,779 358,996
Effect of exchange rate changes on the balance of cash held
in foreign currencies -5,433 6,281
Cash and cash equivalents at 31 December 24 336,048 458,779
Reconciliation of liabilities arising from
financing activities
(DKK’000)
Borrowings
(note 27) Leasing Total
Opening balance 1 January 2022 2,350,286 246,624 2,596,910
Leasing (non-cash) 0 106,643 106,643
Proceeds from borrowings 2,182,836 0 2,182,836
Repayments -2,610,033 -87,332 -2,697,366
Loan costs on refinancing -9,469 0 -9,469
Amortisation of loan costs (non-cash) 6,053 0 6,053
Exchange rate adjustments 13 0 13
Closing balance 31 December 2022 1,919,686 265,934 2,185,620
Reconciliation of liabilities arising from
financing activities
(DKK’000)
Borrowings
(note 27) Leasing Total
Opening balance 1 January 2021 760,556 92,769 853,325
Leasing (non-cash) 0 127,382 127,382
Acquired entities 500,453 0 500,453
Acquired entities (non-cash) 0 83,461 83,461
Proceeds from borrowings 1,700,545 0 1,700,545
Repayments -612,076 -56,988 -669,064
Amortisation of loan costs (non-cash) 414 0 414
Exchange rate adjustments 394 0 394
Closing balance 31 December 2021 2,350,286 246,624 2,596,910
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Financial statements ANNUAL REPORT 2022At a glance Our business Performance review Governance
Basis of
preparation
This section introduces the Group’s accounting policies
and significant judgements, estimates and assumptions
and any effect of changes within. Netcompany aims to
provide transparency on disclosed amounts and describes
accounting policy and significant judgements, estimates
and assumptions where relevant. A detailed specifica-
tion of the Group’s accounting policies is presented in
relevant notes.
Section 1
Note 2 Effect of the change in
accounting policies
Note 1 Accounting policies
In this section
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Financial statements ANNUAL REPORT 2022At a glance Our business Performance review Governance
Note 1
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Note 1
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Note 1
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Note 2
Significantjudgements
Note 1
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Revenue
52.7%
DKKm
5,544.6
2022
5,544.6
2021
3,632.0
Adjusted EBITDA (non-IFRS)
25.6%
DKKm
1,106.2
2022 1,106.2
2021
880.9
Section 2
Note 3 Segment information
Note 9 Other operating income / loss
Note 6 Administrative costs
Note 12 Tax
Note 4 Cost of services
Note 10 Depreciation and amortisation
Note 7 Staff costs and remuneration
Note 13 Income statement classified
by function
Note 5 Sales and marketing costs
Note 11 Financial income and expenses
Note 8 Special items
In this section
Result for the year
This section covers notes related to the performance for the financial year,
including segment information showing operating entities revenue and
EBITDA-margin for operational entities.
80
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Netcompany home market Netcompany main markets Netcompany sourcing centres
Note 3
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Note 3
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Note 3
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Note 3
84
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Note 3
85
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Note 3
86
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Note 4 Note 5
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Note 6 Note 7
Average number of employees 6,906 3,787
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Note 7
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Note 7
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Note 8 Note 9
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Note 10 Note 11
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Note 12
Read more
www.netcompany.com/int/Investor-Relations/Governance
Read more about ESG
https://www.netcompany.com/int/ESG
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Note 12
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Note 12
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Note 12
Note 13
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Invested
capital
This section comprises tangible and intangible
assets, showing in which assets Netcompany
has invested capital.
Section 3
Note 14 Goodwill
Note 20 Financial assets at fair value through
other comprehensive income
Note 17 Investment properties
Note 15 Other Intangible assets
Note 21 Asset held for sale
Note 18 Other tangible assets
Note 16 Business combination
Note 19 Investment in joint venture
In this section
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Note 14
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Note 14
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Note 15
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Note 15 Note 16
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Note 16
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Note 16
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Note 18
Note 17
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Note 18
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Note 19
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Note 20 Note 21
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Trade receivables Work in progress
* Percentages is based on full year revenue,
also for acquired companies
2021
*
2022
20.1%
21.1%
12.3%
13.7%
Trade receivables Work in progress
* Percentages is based on full year revenue,
also for acquired companies
2021
*
2022
20.1%
21.1%
12.3%
13.7%
Trade receivables Work in progress
* Percentages is based on full year revenue,
also for acquired companies
2021
*
2022
20.1%
21.1%
12.3%
13.7%
Trade receivables Work in progress
* Percentages is based on full year revenue,
also for acquired companies
2021
*
2022
20.1%
21.1%
12.3%
13.7%
Trade receivables and work in progress compared to revenue
(%)
Working capital &
Capital structure
This section comprises notes related to Netcompany’s
working capital and capital structure.
Section 4
Note 22 Trade receivables
Note 28 Pension obligations
Note 25 Share capital
Note 31 Non cash items
Note 32 Working capital changes
Note 23 Contract work in progress
Note 29 Other payables
Note 26 Earnings per share
Note 33 Financial risks and financial
instruments
Note 24 Cash and cash equivalents
Note 30 Provisions
Note 27 Borrowings
Note 34 Financial instruments –
maturity analysis
Note 35 Fair value hierarchy
In this section
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Note 22
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Note 23
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Note 23
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Note 24 Note 25
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Note 26 Note 27
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Note 27 Note 28
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Note 28 Note 29
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Note 30
Note 32
Note 31
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Note 33
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Note 33
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Note 34
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Note 35
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Other
disclosures
This section covers other statutory notes,
which are of secondary importance to the
understanding of the financial performance
of Netcompany.
Section 5
Note 36 Fee to the Group auditor
Note 39 Adoption of the Annual Report
for publication
Note 37 Related parties
Note 40 Events after the balance
sheet date
Note 38 Collateral provided and
contingent liabilities
In this section
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Note 36 Note 37
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Note 37
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Note 37 Note 38
Note 39
Note 40
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Parent company financial statement
Notes to the consolidated financial statements
Note Acountingpolicies Note Cashandcashequivalents
Note Sharecapital
Note Borrowings
Note Otherpayables
Note Workingcapitalchanges
Note Financialrisksandfinancialinstruments
Note FeetoGroupauditor
Note Relatedparties
Note Collateralprovidedandcontingentliabilities
Note Jointtaxation
Note Eventsafterthebalancesheetdate
Note Administrativecosts
Note Staffcostsandremuneration
Note Depreciation
Note Financialincomeandexpenses
Note Tax
Note Rightofuseassets
Note Investmentsinsubsidiaries
Section 1: Basis of preparation Section 4: Working capital & Capital structure
Section 5: Other disclosures
Section 2: Result for the year
Section 3: Invested capital
Content
Statement of comprehensive income 126
Statement of financial position 127
Statement of changes in equity 128
Cash flow statement 129
Managementstatement
Independentauditor’sreport
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Statement of comprehensive income for the Parent for 2022
DKK’000 Notes 2022 2021
Revenue 30,000 30,000
Gross profit 30,000 30,000
Sales and marketing costs -2,767 -1,253
Administrative costs 2 -34,293 -40,859
Operating profit / loss (EBIT) -7,060 -12,112
Financial income 5 37,746 20,987
Financial expenses 5 -81,946 -32,998
Profit / loss before tax -51,261 -24,123
Tax on profit / loss for the year 6 11,156 5,205
Profit / loss for the year -40,104 -18,918
Other comprehensive income / loss 0 0
Comprehensive income for the year / loss -40,104 -18,918
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Statement of financial position of the Parent at 31 December 2022
DKK’000 Notes 2022 2021
Right of use assets 617 1,168
Tangible assets 617 1,168
Investment in subsidiary 8 3,041,509 3,017,516
Other receivables 246 326
Deferred tax 2,324 3,820
Financial assets 3,044,080 3,021,663
Non-current assets 3,044,696 3,022,831
Receivables from Group entities 2,008,306 1,752,501
Tax receivables 184,796 145,322
Other receivables 0 0
Prepayments 3,226 1,157
Receivables 2,196,328 1,898,980
Cash 9 1,785 7,152
Current assets 2,198,113 1,906,132
Assets 5,242,810 4,928,963
DKK’000 Notes 2022 2021
Share capital 10 50,000 50,000
Treasury shares -313,287 -241,409
Share-based remuneration 54,226 70,177
Retained earnings 1,478,757 1,537,078
Equity 1,269,696 1,415,846
Borrowings 11 1,872,372 2,275,788
Lease liability 115 584
Non-current liabilities
1,872,487 2,276,372
Lease liability 504 586
Trade payables 463 429
Payables to Group entities 2,086,504 1,164,975
Other payables 12 13,157 70,755
Current liabilities 2,100,627 1,236,745
Liabilities 3,973,115 3,513,117
Equity and liabilities 5,242,810 4,928,963
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Statement of changes in equity for the Parent for 2022
DKK’000
Share
capital
Treasury
shares
Share-based
remuneration
Retained
earnings Total
Equity at 1 January 2022 50,000 -241,409 70,177 1,537,078 1,415,846
Profit / loss for the year 0 0 0 -40,104 -40,104
Total comprehensive income 0 0 0 -40,104 -40,104
Treasury shares acquired in the year 0 -111,472 0 -20,016 -131,487
Treasury shares used in business combinations 0 171 0 388 559
Share-based remuneration for the year 0 39,423 -15,952 1,411 24,882
Total transactions with owners 0 -71,878 -15,952 -18,217 -106,047
Equity at 31 December 2022 50,000 -313,287 54,226 1,478,757 1,269,696
DKK’000
Share
capital
Treasury
shares
Share-based
remuneration
Retained
earnings Total
Equity at 1 January 2021 50,000 -175,000 42,478 1,501,305 1,418,783
Profit / loss for the year 0 0 0 -18,918 -18,918
Total comprehensive income 0 0 0 -18,918 -18,918
Treasury shares acquired in the year 0 -99,993 0 0 -99,993
Treasury shares used in business combinations 0 29,091 0 103,791 132,882
Share-based remuneration for the year 0 4,493 27,699 0 32,192
Dividend paid 0 0 0 -50,000 -50,000
Dividend on treasury shares 0 0 0 900 900
Total transactions with owners 0 -66.409 27,699 54,691 15,981
Equity at 31 December 2021 50,000 -241,409 70,177 1,537,078 1,415,846
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Cash flow statement for the Parent for 2022
DKK’000 Notes 2022 2021
Operating profit (EBIT) -7,060 -12,112
Depreciation 564 484
Non-cash 781 6,452
Working capital changes 13 -9,064 1,865
Cash flows from operating activities -14,779 -3,311
Cash outflow on acquisition of subsidiaries -50,011 -1,181,533
Other receivables (deposits) 80 -109
Cash flows from investing activities -49,931 -1,181,642
Income taxes paid on behalf of the Group -203,588 -183,890
Financial income received 35,897 20,987
Financial expenses paid -83,398 -30,415
Paid dividend 0 -49,100
Net loan to Group entities 842,489 11,506
Payment of treasury shares -131,487 -99,993
Proceeds from borrowings 2,182,836 1,700,000
Repayment of borrowings -2,582,836 -185,182
Repayment of leasing debt -570 -493
Cash flows from financing activities 59,343 1,183,420
Increase in cash and cash equivalents -5,367 -1,533
Cash and cash equivalents at 1 January 7,152 8,685
Cash and cash equivalents at 31 December 9 1,785 7,152
Reconciliation of liabilities arising
from financing activities
(DKK’000)
Borrowings
(note 11) Leasing Total
Opening balance 1 January 2022 2,275,788 1,170 2,276,958
Proceeds from borrowings 2,182,836 0 2,182,836
Repayment of borrowings -2,582,836 -570 -2,583,406
Loan costs on refinancing -9,469 0 -9,469
Amortisation of loan costs (non-cash) 6,053 0 6,053
Leasing (non-cash) 0 19 19
Closing balance 31 December 2022 1,872,372 619 1,872,991
Reconciliation of liabilities arising
from financing activities
(DKK’000)
Borrowings
(note 11) Leasing Total
Opening balance 1 January 2021 760,556 591 761,147
Proceeds from borrowings 1,700,000 0 1,700,000
Repayment of borrowings -185,182 -493 -185,675
Amortisation of loan costs (non-cash) 414 0 414
Leasing (non-cash) 0 1,071 1,071
Closing balance 31 December 2021 2,275,788 1,170 2,276,958
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Accounting policies
Note 1
Netcompany Group A/S presents its Parent
financial statements in accordance with the
International Financial Reporting Standards
as adopted by the EU and additional
Danish disclosure requirements for finan-
cial statements governing reporting class
D, see the Danish Executive Order on IFRS
issued according to the Danish Financial
Statements Act.
Netcompany Group A/S is an entity with its
registered office in Denmark.
The financial statements are presented in
DKK, which is considered the functional cur-
rency of the Parent’s activities.
Totals in the financial statements have been
calculated on the basis of actual amounts in
accordance with the correct mathematical
method. A recalculation of totals may in
some cases result in rounding differences
caused by the underlying decimals not dis-
closed to the reader.
The Parent generally applies the same
accounting policies for recognition and
measurement as the Group. Cases in which
the Parent’s accounting policies differ from
those of the Group are described under the
relevant notes.
For a detailed specification of the Parent’s
accounting policies, please see relevant
notes in the consolidated financial state-
ments.
Administrative costs
Staff costs and remuneration
Note 2
Note 3
DKK’000 2022 2021
Administrative costs 12,632 8,237
Staff costs (note 3) 21,097 32,138
Depreciation 564 484
Total administrative costs 34,293 40,859
DKK’000 2022 2021
Salary and wages 21,077 32,119
Other social security costs 20 19
Total staff costs 21,097 32,138
Staff costs presented under following
account balances
Administrative costs 21,097 32,138
Total staff costs 21,097 32,138
Average number of employees 3 3
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Staff costs and remuneration (continued)
Note 3
DKK’000 2022 2021
Remuneration to the Board of Directors
Bo Rygaard
1,372
1,050
Juha Christensen
979
788
Scanes Bentley
730
438
Hege Skryseth
565
350
Åsa Riisberg
779
525
Susan Cooklin 525 0
Total remuneration to the Board of Directors
4,951 3,150
Remuneration to the Executive Management
André Rogaczewski 5,562 8,167
Claus Jørgensen 5,586 8,226
Thomas Johansen 3,043 4,734
Total short term remuneration 14,191 21,128
André Rogaczewski 765 3,370
Claus Jørgensen 765 3,370
Thomas Johansen 425 1,872
Total share-based remuneration expensed 1,955 8,613
Total remuneration to the Executive Management 16,146 29,741
1
Remuneration to Executive Management and Board of Directors is recognised as administrative costs.
DKK’000 2022 2021
Share-based remuneration
Executive Management 1,955 8,613
Other Group Key Management Personnel 1,274 581
Group employees 21,653 22,998
Total share-based remuneration 24,882 32,192
During 2022, 91,393 RSUs (59,468 RSUs)
were granted of which 20,516 (16,368) were
granted to Executive Management and
70,877 (43,100) were granted to Other
Key Management Personnel and other
employees.
The fair value of total granted RSUs at
grant date was DKK 98.3 million (DKK 102.7
million). The cost associated herewith is
expensed over the vesting period with DKK
24.9 million in 2022 (DKK 32.2 million).
The number of shares granted is deter-
mined by the stock price on the grant day,
measured against the value of grant for
each person.
The share-based incentive programme
based on RSUs will continue in 2023.
The company’s share-based incentive
schemes are further detailed in the Group’s
Remuneration report.
The cost related to Group employees is
expensed in the financial statements
of subsidiaries.
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Staff costs and remuneration (continued)
Note 3
Restricted stock units in
Netcompany shares
Outstanding
1 Jan 2022 Issued Lapsed Transferred
Outstanding
31 Dec 2022
Grant value at
31 Dec 2022
Market value at
31 Dec 2022 Vesting date
No. No. No. No. No. DKK´000 DKK´000
Allocated to:
Executive Management, 2018
3,261 0 0 -3,261 0 0 0
Executive Management, 2019
37,263 0 0 -37,263 0 0 0
Executive Management, 2020
26,161 0 -8,732 0 17,429 6,130 5,128 31 December 2022
Executive Management, 2021
16,368 0 0 0 16,368 9,431 4,815 31 December 2023
Executive Management, 2022
0 20,516 0 0 20,516 9,902 6,036 31 December 2024
Employees
1
, 2018
102,263 0 0 -102,263 0 0 0
Employees
1
, 2019
56,188 0 0 -56,188 0 0 0
Employees
1
, 2020
67,131 0 -4,051 -11,825 51,255 18,026 15,079 31 December 2022
Employees
1
, 2021
42,535 0 -2,104 -1,028 39,403 22,703 11,592 31 December 2023
Employees
1
, 2022
0 70,877 -3,771 -323 66,783 32,147 19,648 31 December 2024
Total allocated shares 351,170 91,393 -18,658 -212,151 211,754 98,338 62,298
Restricted stock units in
Netcompany shares
Outstanding
1 Jan 2021 Issued Lapsed Transferred
Outstanding
31 Dec 2021
Grant value at
31 Dec 2021
Market value at
31 Dec 2021 Vesting date
No. No. No. No. No. DKK´000 DKK´000
Allocated to:
Executive Management, 2018 33,637 0 -1,390 -28,986 3,261 505 2,297 30 June 2021
Executive Management, 2019 44,605 0 -7,342 0 37,263 7,686 26,252 31 December 2021
Executive Management, 2020 26,161 0 0 0 26,161 9,200 18,430 31 December 2022
Executive Management, 2021 0 16,368 0 0 16,368 9,431 11,531 31 December 2023
Employees
1
, 2018 102,969 0 -706 0 102,263 16,146 72,045 31 December 2021
Employees
1
, 2019 56,914 0 -726 0 56,188 11,589 39,584 31 December 2021
Employees
1
, 2020 68,123 0 -992 0 67,131 23,609 47,294 31 December 2022
Employees
1
, 2021 0 43,100 -565 0 42,535 24,508 29,966 31 December 2023
Total allocated shares 332,409 59,468 -11,721 -28,986 351,170 102,675 247,400
1
Group Employees consists of Other Key Management Personnel and Other Group Employees.
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Depreciation
Financial income and expenses
Note 4
Note 5
Tax
Note 6
DKK’000 2022 2021
Depreciation
Right of use assets 564 484
Total Depreciation 564 484
Depreciation presented as follows in the
income statement:
Administrative costs 564 484
Total Depreciation 564 484
DKK’000 2022 2021
Financial income
Intra-group interest income 35,810 20,924
Other finance income 1,935 63
Total Financial income 37,746 20,987
Financial expenses
Intra-group interest expenses 31,700 15,751
Interest expenses, leasing 7 8
Interest expenses on bank loan 37,783 10,733
Other finance charges 13,456 6,506
Total Financial expenses 81,946 32,998
DKK’000 2022 2021
Current tax -12,652 -4,322
Adjustment to prior year 0 23
Change in deferred tax 1,496 -906
Total current tax -11,156 -5,205
Profit / loss before tax -51,261 -24,123
Tax at a rate of 22% -11,277 -5,307
Adjustment to prior year 0 23
Tax-based value of non-deductible expenses 121 79
Total current tax -11,156 -5,205
Effective tax rate 21.8% 21.6%
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Right of use assets
Note 7
Investments in subsidiaries
Note 8
DKK’000 2022 2021
Cost at 1 January 1,236 682
Additions 0 1,456
Remeasurements 12 -392
Disposals -469 -511
Cost at 31 December 779 1,236
Depreciation at 1 January -67 -94
Depreciation for the year -564 -484
Disposals 469 511
Depreciation at 31 December -162 -67
Carrying amount at 31 December 617 1,168
DKK’000 2022 2021
Cost at 1 January 3,017,516 1,618,705
Acquisition of subsidiary 0 1,375,232
Capital contribution 0 1,375,232
Transfer of subsidiary (push down) 0 -1,375,232
Share-based remuneration additions 23,993 23,579
Cost at 31 December 3,041,509 3,017,516
Carrying amount at 31 December 3,041,509 3,017,516
Subsidiaries: (DKK’000)
Form of
enterprise Ownership Equity Result
NC TopCo A/S,
Copenhagen, Denmark
1
A/S 100 % 3,144,493 24,370
1
Annual Report 2021
134
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Investments in subsidiaries (continued)
Note 8
Cash and cash equivalents
Note 9
In 2021, the Parent acquired Intrasoft, and
immediately pushed down the acquired
entity to NC TopCo A/S through a capital
contribution.
Share-based remuneration additions to
investments in subsidiaries incurred by the
Parent on behalf of staff employed in sub-
sidiaries (note 3) and are not recognised in
the Parent income statement.
Accountingprinciples
Investments in subsidiaries are recognised
and measured at cost. Dividend is recog-
nised as income when the right is finally
obtained.
The carrying amount of investments in sub-
sidiaries is examined at the balance sheet
date in order to determine if there is any
indication of impairment.
Impairmenttestforinvestments
The subsidiaries of the Parent are consid-
ered independent cash-generating entities.
In the event of any indication of impairment
of the carrying amount (cost) of invest-
ments in subsidiaries, any impairment loss
is determined based on a calculation of the
value in use of the relevant subsidiary.
If dividends distributed exceed the subsidi-
ary’s comprehensive income in the period
for which dividend is distributed, this is
considered an indication of impairment.
In 2022, all subsidiaries are performing
according to the plan with satisfactory
earnings, and hence Management has con-
cluded that there are no impairment indica-
tors that require a detailed impairment test
to be performed.
DKK’000 2022 2021
Deposits at banks 1,785 7,152
Total cash and cash equivalents 1,785 7,152
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Share capital
Note 10
Borrowings
Note 11
The share capital equals DKK 50,000,000
divided into shares of DKK 1 each or multi-
ples thereof.
The company’s shares are traded on
Nasdaq OMX Copenhagen in denomina-
tions of DKK 1. No shares confer any special
rights upon any shareholder. No shares are
subject to restrictions on transferability or
voting rights.
Purchase of own shares for the long term
Incentive Programme is expected to occur
on a yearly basis. Transfer of shares related
to the RSU programme will likewise vest on
a yearly basis.
Transfers related to the acquisition of
Netcompany-Intrasoft was finalised during
2022, while transfer of shares related to
acquisition of Netcompany Netherlands will
be finalised in 2023.
For a specification of granted RSU or treas-
ury shares please refer to note 3.
DKK’000 2022 2021
Non-current liability
1
1,872,372 2,275,788
Current liability 0 0
Total borrowings 1,872,372 2,275,788
1
According to the Group loan agreement, Netcompany has the opportunity to voluntarily make instalments at
the Group’s discretion before the loan matures in 2025.
DKK’000 Currency Maturity
Type of
interest
Amortised
loan cost
Nominal
value
Carrying
amount
Bank loans DKK 2025+1+1 Floating 7,628 1,880,000 1,872,372
2022 7,628 1,880,000 1,872,372
DKK’000 Currency Maturity
Type of
interest
Amortised
loan cost
Nominal
value
Carrying
amount
Bank loans DKK 2023 Floating 2,712 1,080,000 1,077,288
Bank loans DKK 2023 Floating 1,500 1,200,000 1,198,500
2021 4,212 2,280,000 2,275,788
In 2022, Netcompany entered into a new
Group facility agreement. The Group bank
loan matures in 2025, with the opportunity
to postpone with one year, and another
year in addition. For further details please
refer to note 32.
The fair value of bank loans excluding capi-
talised loan costs is deemed to approximate
the nominal value of the loans.
2022 2021
Number of shares 50,000,000 50,000,000
Number of votes 50,000,000 50,000,000
Netcompany treasury shares
2022 2021
NO. % NO. %
Number of treasury shares 1 January 827,110 1.7% 899,813 1.8%
Purchase of own shares 287,189 0.6% 143,970 0.3%
Transfers related to acquisitions -789 0.0% -187,687 -0.4%
Transfers related to RSU programme -212,151 -0.4% -28,986 -0.1%
Number of treasury shares 31 December 901,359 1.8% 827,110 1.7%
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Other payables
Working capital changes
Note 12
Note 13
Financial risks and financial instruments
Note 14
DKK’000 2022 2021
Wages and salaries, payroll taxes, social
security costs, etc. payable 3 7,500
VAT and duties 1,507 1,506
Holdback (note 16 in Group) 10,246 60,816
Other costs payable 1,401 933
Total other payables 13,157 70,755
DKK’000 2022 2021
Change in receivables -2,069 -88
Change in payables -6,995 1,953
Total working capital changes -9,064 1,865
DKK’000 2022 2021
Categories of financial instruments
Receivables from Group entities 2,008,306 1,752,501
Financial assets measured at amortised cost 2,008,306 1,752,501
Cash 1,785 7,152
Financial assets measured at fair value 1,785 7,152
Borrowings 1,872,372 2,275,788
Lease liabilities 619 1,170
Trade payables 463 429
Payables to Group entities 2,086,504 1,164,975
Other payables 13,157 70,755
Financial liabilities measured at amortised cost 3,973,115 3,513,117
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Financial risks and financial instruments (continued)
Note 14
Policyformanagementoffinancialrisks
The Parent’s objective at all times is to
limit the Parent’s financial risks.
The Parent manages the financial risks
and coordinates cash management and
management of interest rate and currency
risks based on financial risk policies
agreed with the Board of Directors.
Liquidityrisks
During 2022, the Parent completed the
scheduled refinancing of the bank debt
and entered a sustainable linked loan, with
improved terms and margins.
The Parent attempts to maximise flexibil-
ity and minimise risks. At 31 December
2022, the Parent has unutilised credit
facilities of a total of DKK 771.1 million
(DKK 183.3 million) excluding an acquisi-
tion facility of DKK 2,000.0 million (DKK
400.0 million).
Interestraterisks
The Parent's loan bear floating interest
rates, and Management therefore closely
follows the development in the IBOR and
continuously consider if interest risks
should be minimised by hedging the inter-
est rate.
The combined committed facilities consti-
tutes a total amount of DKK 2,800 million
(DKK 2,700 million), and an optional facil-
ity of DKK 2,000 million (DKK 400 mil-
lion) limited to acquisitions, whereof DKK
1,880 million (2,280 million) was utilised
on borrowings and DKK 148.9 million
(DKK 236.7 million) on guarantees.
The Parent's original bank loan carried
floating interest rates between IBOR +
0.8% and IBOR + 1.9% (IBOR + 1.1% and
IBOR + 2.1%), depending on the financial
leverage.
Current interest rate equals to yearly bank
loan interest expenses of DKK 71.9 million
(DKK 20.3 million) based on the current
IBOR and current utilisation. The increase
compared to 2021 follows the increase in
IBOR and the acquisition of Netcompany-
Intrasoft in October 2021 and thereby
increased utilisation of the facilities.
If the interest rate on the Group bank loan
changes ‘one additional step up’, due to
changes in leverage, a new interest rate of
1.6% will be applicable equal to bank loan
interest expenses of DKK 75.7 million,
which corresponds to an additional
increase in financial expenses of DKK 3.8
million.
Creditrisks
In 2022, the Parent has not realised any
credit losses. At 31 December 2022, the
credit risk is primarily relating to inter-
company receivables where the credit risk
is considered remote and the Parent has
made a provision of DKK 0 for expected
credit losses.
Currencyrisks
The Parent is only to a limited extent
exposed to foreign currency risks. The
main part of the Parent’s transactions is in
DKK.
Optimisationofthecapitalstructure
The Parent regularly assesses whether its
capital structure is in accordance with the
Parent’s and the Shareholders' interest.
The overall objective is to ensure a capital
structure that supports long term growth
whilst maximising returns for the Parent’s
owners by optimising the equity-to-debt
ratio.
Fee to the Group auditor
Note 15
(DKK’000) 2022 2021
Statutory audit 1,968 673
Other assurance agreements 50 0
Tax and VAT advisory
services 0 0
Other services 178 25
Total fee to the Group
auditor 2,196 698
Fees for services other than the statutory
audit of the financial statements provided
by EY Godkendt Revisionspartnerselskab
Denmark amounted to DKK 0.2 million
(DKK 0.0 million) including other assur-
ance opinions and other services.
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Related parties
Note 16
Collateral provided and contingent liabilities
Joint taxation
Events after the balance sheet date
Note 17
Note 18
Note 19
As at 31 December 2022, there are no
shareholders with controlling interest.
Large shareholders (>5%) consists of
• AC NC Holding ApS: 10.3% (Denmark)
• Danske Bank A/S: 5.1% (Denmark)
Please refer to Shareholder Information in
Management Commentary.
Related parties with significant influence
are the company’s Executive Management,
Board of Directors, and their related par-
ties. Furthermore, related parties are com-
panies in which the above persons have sig-
nificant interests, as well as subsidiaries and
joint venture to the Group. All transactions
with related parties are made on arm’s
length terms. The Parent earns fee income
from subsidiaries in relation to administra-
tive services amounting to DKK 30.0 million
(DKK 30.0 million).
Netcompany Group A/S will provide contin-
uing financial support to Netcompany
Netherlands B.V. for a period up until
February 2024.
The Parent has provided collateral for bank
guarantees initiated by its subsidiaries
towards its customers amounting DKK
148.9 million (DKK 236.7 million).
As of 16 April 2018, the Parent joined the
national taxation arrangement and became
the administrative company of the Danish
subsidiaries. The current income tax is
At the time of publication, Netcompany
Group A/S awaits the outcome of the
discussions with the Danish Business
Authority.
In 2022, Other Key Management Personnel
in the Group exercised a put option of
44,539 treasury shares related to the acqui-
sition of Intrasoft.
There were no transactions with members
of Executive Management or members of
the Board of Directors of the Group, other
than remuneration, and furthermore no
loans were granted to the Board of
Directors or Executive Management in 2022
and 2021.
Ownership
The part of Netcompany Group A/S owned
by Executive Management and the Board of
Directors is specified in the Remuneration
report.
There are no collaterals provided for the
Group’s bank loan.
The Group is in 2022 as well as in 2021 part
of some legal claims. The outcome of
these disputes are not considered likely to
impact the Groups financial position signifi-
cantly, besides what is allready recognised
in the balance sheet.
allocated among the jointly taxed compa-
nies in proportion to their taxable income
(“full allocation method”).
No events have occurred after the balance
sheet date, which would influence the eval-
uation of this Annual Report.
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Executivemanagement
BoardofDirectors
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ReportontheauditoftheConsolidated
FinancialStatementsandParentCompa-
nyFinancialStatements
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EY
Godkendt Revisionspartnerselskab
Business Registration
No 30700228
Independent auditor’s report (continued)
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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
Operating profit
margin
1
=
Operating profit x 100
Revenue
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
Equitypershare
2
=
Equity excluding non-controlling interest
at year-end
Number of circulating shares
at year-end
Pricebookvalue
2
=
Share price at year-end
Equity per share at year-end
Marketvalue
1
=
Number of shares, excluding treasury
shares, year-end x share price at
year-end
Dividendreturn =
Paid dividend per share
Share price at beginning of year
EBITDA
1,2
= EBIT + Depreciation and amortisation
EBITDA margin =
EBITDA x 100
Revenue
Adjusted EBITDA =
EBITDA + Special items + Other
operating income
Adjusted EBITDA
margin
=
Adjusted EBITDA x 100
Revenue
EPS
1
=
Net profit
Average outstanding shares
EPS diluted
1
=
Net profit
Average outstanding shares
+ Diluted shares
Free cash flow
1,2
=
Cash flow from operating activities
- Capex
Capex
1,2
=
Capitalised costs and 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
Key figures and financial ratios have been compiled in
accordance with the following calculation formulas.
1
Key figures defined according to IFRS.
2
Key figures defined according to Recommendations & Financial
Ratios” issued by the Danish Finance Society.
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CVR no. 3 94 8 89 14
Tel.: +45 7013 14 40
E-mail: info @n etcompany.com
Auditor
Dirch Passers Allé 36
2000 Frederiksberg
Denmark
Annual Report design
BystedFFW
Company information
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Annual Report 2022