Netcompany Group A/S
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
netcompany
Company Announcement
12 months ended 31 December 2022
With strong performance in Q4 2022, Net-
company realised revenue growth of 52.7%
and adjusted EBITDA margin above 20% for
the full year - in line with guidance
Q4|22
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
1
43
In Q4 2022, Netcompany grew revenue to DKK 1,519.3m – equal to 31.9%
growth compared to Q4 2021 (constant 32.5%) of which 13 percentage
points was non-organic and related to Netcompany-Intrasoft. Organic
revenue growth was 18.9% (constant 19.5%).
Adjusted EBITDA was DKK 348.9m in Q4 2022 compared to DKK 238.2m
in Q4 2021. Adjusted EBITDA margin was 23% in Q4 2022 (constant 23%)
compared to 20.7% in Q4 2021.
Free cash flow continued to be strong and increased by 140% and was DKK
323.4m in Q4 2022 compared to DKK 134.7m in Q4 2021. Debt leverage was
reduced from 2.7x in Q4 2021 to 1.6x in Q4 2022.
Average number of full-time employees grew by 1,936 from 5,417 in Q4 2021
to 7,353 in Q4 2022 and churn rates continued to decline during Q4 2022 –
measured on both 3 and 12 month rolling basis.
For the full year, Netcompany realised total revenue in line with guidance
of DKK 5,544.6m – equal to 52.7% growth compared to 2021 (constant
52.5%) of which 37.8 percentage points was non-organic and related to
Netcompany-Intrasoft. Organic revenue growth was 14.9% (constant 14.7%)
For 2022, Adjusted EBITDA was DKK 1,106.2m compared to DKK 880.9m for
2021. Adjusted EBITDA margin was 20% for 2022 (constant 20%) – in line
with guidance too - compared to 24.3% in 2021.
Free cash flow for the full year was DKK 602.7m, which was an
improvement of 47.7% compared to 2021 where free cash flow was DKK
408m.
Revenue visibility improved by 9.3% from DKK 3,824.8m for 2022 to DKK
4,179.9m for 2023.
For 2023, Netcompany expects revenue growth in constant currencies of
between 8% and 12% - all organic.
Adjusted EBITDA margin measured in constant currencies is expected to
be between 15% and 18%.
Summary
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
2
43
André Rogaczewski
NETCOMPANY CEO AND CO-FOUNDER
“We ended the year strong and in line with our expectations driven by continued strong performance throughout the Group,
particularly in Netcompany-Intrasoft and the UK.
Despite unprecedented high uncertainty observed in 2022, we realised close to 53% revenue growth and a margin above 20% - as
outlined in the beginning of 2022, which makes me really proud.
Results like these are not easily achieved, and they are a true testimony to the outstanding talent that our more than 7,500
employees possess. Together with our customers they define the digitalisation agenda in Europe and in close collaboration they
realise benefits associated hereto.
From a macroeconomic perspective, 2023 looks to be even more challenging than the last two years, which is reflected in our
expectations for the financial performance. Despite the gloomy outlook we still expect to grow between 8% and 12%.
We also will continue to make investments into future proofing our offerings and solutions and hence expect our margins to be
between 15% and 18% next year.
It is my firm belief that the future will be driven by digitalisation, and I am confident that courage to invest into long term
objectives, will bring Netcompany closer to realise our aspiration of being a European IT market leader.”
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
3
43
• Revenue increased by 31.9% to DKK
1,519.3m in reported currencies and by
32.5% in constant currencies.
• Organic revenue grew by 18.9% (19.5%
constant).
• Gross profit margin was 34.2% against
33.5% in Q4 2021.
• Adjusted EBITDA increased 46.4% and
yielded a margin of 23%.
• Free cash flow was DKK 323.4m.
• Free cash flow normalised for tax
payments improved by 124.6% to DKK
361.4m.
• Fair value adjustment of the invest-
ment in the Netherlands reflected an
increase of the final purchase price
and impacted net profit negatively by
DKK 7.9m.
• Cash conversion rate normalised for
tax payment was 149.5% compared to
93.2%.
• Debt leverage to 12 months rolling
adjusted EBITA was 1.6x.
Financial overview
Netcompany
Intrasoft
Q4 2022 Q4 2022 % change non-organic % change
DKK million
(reported) (constant)* Q4 2021 (reported) impact (constant)*
Revenue 1,519.3 1,526.5 1,152.1
31.9% 13.0pp 32.5%
Gross profit 520.0 522.9 385.8
34.8% 6.8pp 35.5%
Adjusted EBITDA 348.9 350.9 238.2
46.4% 8.9pp 47.3%
Adjusted EBITDA margin
23.0% 23.0% 20.7% 2.3pp -1.0pp 2.3pp
Adjusted EBITA 309.1 311.1 210.3
47.0% 4.2pp 47.9%
Adjusted EBITA margin
20.3% 20.4%
18.3%
2.1pp -1.6pp 2.1pp
EBITA 315.4 317.4 202.4
55.9% 6.8pp 56.9%
EBITA margin
20.8% 20.8% 17.6% 3.2pp -1.3pp 3.2pp
Operating profit 281.6 283.6 178.1
58.1% 6.2pp 59.2%
Operating profit margin
18.5% 18.6% 15.5% 3.1pp -1.2pp 3.1pp
Net profit / loss 215.4 217.3 153.8
40.1% 3.8pp 41.3%
Free cash flow 323.4 N/A 134.7
140.0% N/A N/A
Free cash flow (tax normalised) 361.4 N/A 160.9
124.6% N/A N/A
Cash conversion ratio (tax normalised) 149.5% N/A 93.2% 56.3pp N/A N /A
*Constant currencies measured using average exchange rates for Q4 2021
Performance highlights Q4
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
4
43
• Revenue increased by 52.7% to DKK
5,544.6m in reported currencies and
by 52.5% in constant currencies.
• Organic revenue grew by 14.9% (14.7%
constant).
• Gross profit margin was 32% against
36.7% for the same period in 2021.
• Adjusted EBITDA increased 25.6% and
yielded a margin of 20%.
• Free cash flow was DKK 602.7m in
2022 compared to DKK 408m in 2021.
• Fair value adjustment of the invest-
ment in the Netherlands reflected an
increase of the final purchase price
and impacted net profit negatively by
DKK 7.9m.
• Cash conversion rate normalised for
tax payment was 90.9%.
• Debt leverage to 12 months rolling
adjusted EBITA was 1.6x.
Financial overview
Netcompany
Intrasoft
YTD 2022 YTD 2022 % change non-organic % change
DKK million
(reported) (constant)* YTD 2021 (reported) impact (constant)*
Revenue 5,544.6 5,538.9 3,632.0
52.7% 37.8pp 52.5%
Gross profit 1,772.5 1,774.0 1,333.3
32.9% 19.5pp 33.1%
Adjusted EBITDA 1,106.2 1,109.7 880.9
25.6% 16.3pp 26.0%
Adjusted EBITDA margin
20.0% 20.0% 24.3% -4.3pp -3.1pp -4.2pp
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
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
Operating profit 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 profit / loss 602.8 607.2 574.3
5.0% 8.5pp 5.7%
Free cash flow 602.7 N/A 408.0
47.7% N/A N/A
Free cash flow (tax normalised) 642.6 N/A 422.4
52.1% N/A N/A
Cash conversion ratio (tax normalised) 90.9% N/A 68.8% 22.1pp N /A N/A
*Constant currencies measured using average exchange rates for 2021
Performance highlights 2022
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
5
43
In connection with the publication of the
results for Q4 2022, Netcompany will host
a conference call on 25 January 2023 at
11.00 CET.
The conference call will be held in English
and can be followed live via the compa-
ny’s website; www.netcompany.com
Dial-in details for investors and analysts
DK
+45 78 76 84 90
UK
+44 203 769 6819
US
+1 646 787 0157
Pincode
598046
Webcast Player URL
https://streams.eventcdn.net/netcompany/
annual-report-2022/
Additional information
André Rogaczewski, CEO
+45 70 13 14 40
Thomas Johansen, CFO
+45 51 19 32 24
Conference call details
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
6
43
Performance overview Q4
Netcompany
Intrasoft
Q4 2022 Q4 2022 % change non-organic % change
DKK million
(reported) (constant)* Q4 2021 (reported) impact (constant)*
Revenue 1,519.3 1,526.5 1,152.1
31.9% 13.0pp 32.5%
Cost of services -999.3 -1,003.6 -766.3
30.4% 16.1pp 31.0%
Gross profit
520.0 522.9 385.8 34.8% 6.8pp 35.5%
Gross profit margin
34.2% 34.3% 33.5% 0.7pp -1.8pp 0.8pp
Sales and marketing costs -12.1 -12.2 -18.8
-35.7% 2.9pp -35.2%
Administrative costs -198.8 -199.6 -156.8
26.8% 8.2pp 27.3%
Adjusted EBITA
309.1 311.1 210.3 47.0% 4.2pp 47.9%
Adjusted EBITA margin
20.3% 20.4% 18.3% 2.1pp -1.6pp 2.1pp
Special items 0.0 0.0 -7.7
-100.0% 0.0pp -100.0%
Other operating income / expense 6.3 6.3 -0.2
-35.298 -2728.930 -35.298
EBITA
315.4 317.4 202.4 55.9% 6.8pp 56.9%
EBITA margin
20.8% 20.8% 17.6% 3.2pp -1.3pp 3.2pp
Amortisation -33.8 -33.8 -24.3
39.4% 11.5pp 39.4%
Operating profit (EBIT)
281.6 283.6 178.1 58.1% 6.2pp 59.2%
Operating profit margin
18.5% 18.6% 15.5% 3.1pp -1.2pp 3.1pp
Net financials -22.6 -22.6 -13.9
62.9% 21.0pp 63.2%
Fair value adj. of contingent consideration -7.9 -7.9 29.4
-126.8% 0.0pp -126.8%
Income / loss, investment in joint venture 4.5 4.5 -4.9
-191.6% 0.0pp -191.6%
Income / loss, investment in associates 0.7 0.7 0.0
N/A 0.0pp N /A
Profit / loss before tax
256.4 258.3 188.7 35.9% 4.3pp 36.9%
Ta x -41.0 -41.0 -34.9
17.2%
6.4pp
17.3%
Effective tax rate
16.0% 15.9% 18.5% -2.5pp 0.4pp -2.6pp
Net profit / loss
215.4 217.3 153.8 40.1% 3.8pp 41.3%
*Constant currencies measured using average exchange rates for Q4 2021
Reported revenue grew 31.9% (constant
32.5%) in Q4 2022 to DKK 1,519.3m of
which 18.9 percentage points was organ-
ic. Client facing FTEs increased by 35.4%
due to the inclusion of Netcompany-Intra-
soft, which only imacted part of Q4 2021.
Normalised for this, client facing FTEs
increased by 15%. End of Q4, total FTEs
amounted to more than 7,300.
Gross profit margin was 34.2%, which was
slightly better than the same period in
2021 where gross profit margin was 33.5%,
despite the dilutive impact of 1.8 percent-
age point to gross profit margin from
Netcompany-Intrasoft. Lower variable re-
muneration reduced costs of services and
was contributing to the improved gross
profit margin.
Sales and marketing costs were 35.7%
lower than the same period in 2021 at DKK
12.1m, which was more a result of large
one-off costs realised in Q4 2021 than a
sustainable lower level of spend for sales
and marketing costs. Sequentially from Q3
to Q4 sales and marketing costs increased
by 14% and reflect the continued invest-
ment into enhancing the brand position of
Netcompany outside of Denmark.
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
7
43
Income from investment in joint venture
of DKK 4.5m was a result of underlying
business activity in Smarter Airports – the
joint venture that Netcompany has with
Copenhagen Airport.
Income taxes in Q4 2022 was DKK 41m,
which was 17.2% higher than Q4 2021.
The underlying taxable income did not
increase with the same absolute value as
income before tax due to various timing
differences when completing the calcula-
tion of taxable income for the Group. Con-
sequently, effective income tax rate was
slightly lower at 16% in Q4 2022 compared
to 18.5% in Q4 2021.
Operating profit (EBIT) increased by 58.1%
in Q4 2022 to DKK 281.6m compared to
DKK 178.1m in Q4 2021. EBITA margin
was 20.8% compared to 17.6% in Q4 2021.
Margins were better in both Netcompany
Core and Netcompany-Intrasoft compared
to Q4 2021.
Net financials were negative DKK 22.6m
compared to negative DKK 13.9m for the
same period last year. The main reason for
the increased financial costs was full inter-
est costs related to the loan obtained to
finance the acquisition of Intrasoft Inter-
national A.S, which only partially impacted
Q4 2021 as the transaction was executed
31 October 2021.
A fair value adjustment of DKK 7.9m im-
pacted the result negatively in Q4 2022.
The adjustment reflected an increase in
the final contingent consideration of the
purchase price of QDelft (Netcompany
Netherlands) acquired in 2019 and was
based on the actual performance for the
period 2020 to 2022. There are no more
potential adjustments outstanding.
Administrative costs increased by 26.8%
of which Netcompany-Intrasoft accounted
for 8.2 percentage points. Lower varia-
ble remuneration reduced administrative
costs, which led to the lower than other-
wise anticipated growth in administrative
costs.
Adjusted EBITA increased 47% to DKK
309.1m yielding an adjusted EBITA margin
of 20.3% compared to 18.3% in Q4 2021.
Netcompany-Intrasoft impacted adjusted
EBITA margin negatively by 1.6 percent-
age points. The overall improved adjusted
EBITA margin was driven by better perfor-
mance in both Netcompany Core and Net-
company-Intrasoft in Q4 2022 compared
to the same period last year.
Amortisation was DKK 33.8m compared
to DKK 24.3m for the same period last
year. The increase of 39.4% compared to
last year is a consequence of Netcom-
pany-Intrasoft only being included by 2
months in 2021. Sequentially from Q3 to
Q4 amortisation were DKK 1.1m lower in
Q4 2022.
PERFORMANCE OVERVIEW Q4CONTINUED
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
8
43
Business Segments Q4
DKK million
Q4 2022
Constant (2021 rate)
Group Denmark Norway UK Netherlands Intrasoft
Revenue from external customers 1,526.5 759.3 90.4 135.8 30.6 510.4
Gross profit
529.2 341.2 21.4 43.0 7.2 116.5
Gross profit margin
34.7% 44.9% 23.7% 31.6% 23.5% 22.8%
Local admin costs -179.0 -101.1 -15.4 -16.7 -7.9 -37.9
Adjusted EBITDA before allocated cost from HQ
350.2 240.1 6.0 26.3 -0.7 78.6
Adjusted EBITDA margin before allocated cost from HQ
22.9% 31.6% 6.6% 19.3% -2.2%
15.4%
Allocated costs from HQ 0.7 0.5 0.1 0.1 0.1 0.0
Special Items, allocated 0.0 -0.0 -0.0 0.0 -0.0 0.0
Depreciation -39.8 -22.7 -1.9 -3.6 -1.5 -10.2
Amortisation -33.8 -18.8 -2.0 -3.2 -1.0 -8.7
Other operating income / expense 6.3 0.0 0.0 0.0 0.0 6.3
EBIT
283.6 199.0 2.1 19.5 -3.1 66.1
Client facing FTEs 6,871 2,843 336 528 141 3,024
DKK million
Q4 2021
Reported
Group Denmark Norway UK Netherlands Intrasoft
Revenue from external customers 1,152.1 673.8 67.9 102.1 22.7 285.6
Gross profit
397.0 294.9 13.8 30.6 2.4 55.3
Gross profit margin
34.5% 43.8% 20.3% 30.0% 10.6% 19.4%
Local admin costs -148.0 -84.0 -13.8 -14.8 -7.8 -27.6
Adjusted EBITDA before allocated cost from HQ
249.0 211.0 -0.0 15.8 -5.4 27.6
Adjusted EBITDA margin before allocated cost from HQ
21.6% 31.3% -0.1% 15.5% -23.7%
9.7%
Allocated costs from HQ -10.6 -7.9 -1.0 -1.3 -0.4 0.0
Special Items, allocated -7.7 -5.8 -0.7 -0.9 -0.3 0.0
Depreciation -28.2 -16.5 -1.9 -2.2 -1.3 -6.3
Amortisation -24.3 -17.7 -2.2 -2.9 -1.0 -0.5
Other operating income / expense -0.2 0.0 0.0 0.0 0.0 -0.2
EBIT
178.1 163.2 -5.8 8.6 -8.4 20.6
Client facing FTEs 5,074 2,419 281 426 151 1,797
Revenue, %
Revenue, %
Q4 2021
Q4 2022
NO
DK
UK
NL
INTRASOFT
NO
DK
UK
NL
INTRASOFT
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
9
43
Netcompany Denmark
Revenue growth in the Danish business
unit was 12.7% driven by strong growth in
the private segment that grew 13.9% and
continued growth in the public segment
that grew 11.9%. As the rest of society, Net-
company also experienced elevated levels
of sickness during Q4, particularly in the
month of December.
The level of uncertainty among existing
and prospective customers has increased
during the last quarter of the year, how-
ever still with no significant reduction in
backlog and pipeline as of yet.
Adjusted EBITDA margin was 31.6% com-
pared to 31.3% in Q4 2021. Lower variable
remuneration impacted cost of services
and administrative costs positively and
offset the impact from lower utilisation in
the quarter.
Netcompany Norway
Revenue growth in Netcompany Norway
was 33.2% in Q4 2022 compared to the
same period last year. As in previous quar-
ters growth was driven by the private seg-
ment in Norway that grew more than
200% - albeit from a very low level. Rev-
enue in the public segment declined 3.7%
in Q4 2022. Elevated levels of sickness
during Q4, was also observed in Norway,
particularly in the month of December.
During Q4 the majority of the 70 new
starters as highlighted in the Q3 earnings
report were utilised on projects driving
the overall utilisation up. There are still
improvements to be achieved, as all new
starters are expected to be fully utilised
during the first quarter of 2023.
Adjusted EBITDA margin was 6.6% com-
pared to negative 0.1% in Q4 2021 as utili-
sation improved.
Netcompany UK
In the UK, the strong growth momen-
tum observed during the year, continued
during Q4 and revenue grew 32.9% com-
pared to the same period last year. Where
growth was mainly driven by the public
segment thus far in the UK, the private
segment grew 50.9% in Q4 as a number of
large private enterprises were onboarded.
Growth in the public segment continued
at a strong pace and grew 26.4%.
Adjusted EBITDA margin continued to
improve and was positively impacted by
a few projects being completed ahead
of estimated time, impacting margin
positively. In addition, the level of work
conducted from home or at client sites
continued to be high, reducing the need
for additional office space despite client
facing FTEs growing close to 24%.
Utilisation remained high and consequent-
ly adjusted EBITDA margin for Q4 2022
was 19.3% compared to 15.5% in the same
period last year.
Netcompany Netherlands
Revenue in the Dutch business unit grew
34.5% in Q4 2022. Growth was – in line
with previous quarters – generated in the
public segment that grew by 51.2%. The
private segment was further reduced and
accounts for only DKK 0.6m in Q4 2022.
As the large fixed price projects that have
been problematic were completed, utili-
sation and average rates improved, which
led to an improvement in the underlying
financial performance of the Dutch oper-
ating in Q4 – and going forward.
Consequently, adjusted EBITDA margin
was substantially improved from negative
23.7% to negative 2.2% in Q4 2022.
Netcompany-Intrasoft
Revenue in Netcompany-Intrasoft grew by
78.7% to DKK 510.4m in Q4 2022, howev-
er Q4 2021 only included the months of
November and December. On a proforma
basis revenue grew from DKK 409.8m to
DKK 510.4m – or 24.5%. Organic revenue
growth for the months of November and
December was 26.3%.
The growth in Q4 was driven by strong
performance in the private and public seg-
ment while the EU segment grew at nor-
mal pace. In addition, revenue growth was
accelerated as revenue from license sales
was recognised in the quarter and tech-
nical equipment as part of one specific
project was “passed through” as revenue
in Q4 also.
Adjusted EBITDA margin was 15.4% in Q4
2022 compared to 9.7% in the same peri-
od last year. The recognition of licenses in
the income statement in Q4 were a mate-
rial driver of the increase in margin.
BUSINESS SEGMENTS Q4CONTINUED
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
10
43
Performance overview 12 months
Netcompany
Intrasoft
YTD 2022 YTD 2022 % change non-organic % change
DKK million
(reported) (constant)* YTD 2021 (reported) impact (constant)*
Revenue 5,544.6 5,538.9 3,632.0
52.7% 37.8pp 52.5%
Cost of services -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 / expense 5.9 5.9 -0.2
-33.0pp -33.0pp -2498.8pp
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 adj. of contingent consideration -7.9 -7.9 78.9
-110.0% 0.0pp -110.0%
Income / loss, 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 / loss 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
Net profit / loss
602.8 607.2 574.3 5.0% 8.5pp 5.7%
*Constant currencies measured using average exchange rates for 2021
Revenue grew 52.7% in 2022 (constant
52.5%) to DKK 5,544.6m. Organic revenue
growth was 14.9% and non-organic reve-
nue growth was 37.8%. High level of activi-
ty in Netcompany UK and Netcompany-In-
trasoft were the main growth drivers.
Gross profit margin was 32% compared to
36.7% for the same period last year. The
inclusion of Netcompany-Intrasoft was
the main reason for the lower margin and
accounted for 4.3 percentage points of
the total decline of 4.7%. Lower utilisation
in Netcompany Core was somewhat offset
by lower variable remuneration.
Adjusted EBITA was 22% higher in 2022
than in 2021 at DKK 967.6m yielding a
margin of 17.5% compared to 21.8% in
2021. Netcompany-Intrasoft had a dilutive
impact on adjusted EBITA margin of 3.2
percentage points. The remaining decline
was driven by lower margins in Denmark
and Norway, which to some extent was
offset by better margins in the UK and in
the Netherlands.
Despite a dilutive margin impact from
including Netcompany-Intrasoft, margin
in Netcompany-Intrasoft still improved in
2022 compared to last year.
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
11
43
Business Segments 12 months
DKK million
YTD 2022
Constant (2021 rate)
Group Denmark Norway UK Netherlands Intrasoft
Revenue from external customers 5,538.9 2,877.2 291.0 535.4 102.7 1,732.7
Gross profit
1,798.2 1,231.4 41.8 156.9 16.7 351.3
Gross profit margin
32.5% 42.8% 14.4% 29.3% 16.3% 20.3%
Local admin costs -651.3 -362.5 -54.1 -60.8 -28.4 -145.3
Adjusted EBITDA before allocated cost from HQ
1,147.0 868.9 -12.3 96.2 -11.6 206.0
Adjusted EBITDA margin before allocated cost from HQ
20.7% 30.2% -4.2% 18.0% -11.3%
11.9%
Allocated costs from HQ -37.3 -27.0 -3.0 -5.8 -1.4 0.0
Special Items, allocated 0.0 0.0 0.0 0.0 0.0 0.0
Depreciation -137.8 -75.4 -7.3 -10.8 -5.5 -38.9
Amortisation -134.1 -77.4 -8.5 -15.6 -4.0 -28.6
Other operating income / expense 5.9 0.0 0.0 0.0 0.0 5.9
EBIT
843.7 689.0 -31.2 63.9 -22.6 144.4
Client facing FTEs 6,453 2,659 297 505 137 2,856
DKK million
YTD 2021
Reported
Group Denmark Norway UK Netherlands Intrasoft
Revenue from external customers 3,632.0 2,590.4 267.3 406.7 82.1 285.6
Gross profit
1,362.5 1,126.2 65.3 105.9 9.9 55.3
Gross profit margin
37.5% 43.5% 24.4% 26.0% 12.0% 19.4%
Local admin costs -443.3 -297.3 -40.2 -54.2 -23.9 -27.6
Adjusted EBITDA before allocated cost from HQ
919.2 828.8 25.1 51.7 -14.0 27.6
Adjusted EBITDA margin before allocated cost from HQ
25.3% 32.0% 9.4% 12.7% -17.1%
9.7%
Allocated costs from HQ -38.3 -28.2 -3.4 -5.2 -1.5 0.0
Special Items, allocated -37.7 -28.3 -3.5 -4.5 -1.5 0.0
Depreciation -87.8 -61.6 -6.0 -8.7 -5.2 -6.3
Amortisation -51.4 -37.5 -4.6 -6.7 -2.1 -0.5
Other operating income / expense -0.2 0.0 0.0 0.0 0.0 -0.2
EBIT
703.8 673.3 7.7 26.6 -24.4 20.6
Client facing FTEs 3,553 2,289 266 408 142 449
Revenue, %
Revenue, %
NO
DK
UK
NL
YTD 2021
YTD 2022
INTRASOFT
NO
DK
UK
NL
INTRASOFT
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
12
43
Netcompany Denmark
Revenue growth in the Danish business
unit was 11.1%, driven by the private seg-
ment that grew 13% compared to 2021.
The public segment grew 9.7%. Despite
an improvement in the level of sickness in
the second part of 2022 the absence level
was higher in 2022 than in 2021 impacting
revenue growth negatively.
Adjusted EBITDA margin was 30.2% com-
pared to 32% in 2021. Lower variable re-
muneration had a positive impact on mar-
gin whereas the higher level of absence
had a negative impact on utilisation and
hence margin.
Netcompany Norway
In Norway, revenue growth was 8.9%,
which was lower than in previous years
and lower than expected. The lower
growth was mainly a result of project
clean ups made in Q2 2022 on three
fixed price projects. In addition, a higher
absence level in 2022 than in 2021 had a
dilutive impact on utilisation and revenue
growth.
Adjusted EBITDA margin was negative
4.2% compared to 9.4% in 2021. The pro-
ject clean ups were the main driver of low-
er margin. Lower of variable remuneration
partially offset the negative impact.
Netcompany UK
Revenue growth in the UK was 31.7%
based on strong growth in the public seg-
ment that grew by 60.9%. In the private
segment revenue declined by 6.5%. De-
spite declining revenue in the UK private
segment, the private market remains high-
ly interesting, which led to growth in Q4 in
isolation.
Adjusted EBITDA margin improved by
more than 5 percentage points from 12.7%
in 2021 to 18% in 2022. High utilisation,
better pricing, and strong project exe-
cution were driving the improvement in
margin.
Netcompany Netherlands
In the Netherlands revenue grew 25.1% in
2022 compared to 2021, albeit from a low
BUSINESS SEGMENTS 12 MONTHSCONTINUED
comparable level. Growth was solely driv-
en by the public segment as there current-
ly is no private segment business in the
Dutch operation.
Adjusted EBITDA margin improved from
negative 17.1% in 2021 to negative 11.3% in
2022. The completion of fixed price pro-
jects with low margins during the year had
a positive impact on utilisation and aver-
age rates and thereby a positive impact
on margin.
Netcompany-Intrasoft
Revenue growth in Netcompany-Intrasoft
was 12.4% based on 2021 pro-forma basis.
The growth was driven by strong perfor-
mance in the EU and in the private seg-
ment whereas the public segment grew
slower due to delays in projects in Greece
under the RRF program.
Growth accelerated in Q4 driven by soft-
ware license sales and passthrough of
technical equipment for one specific pro-
ject.
Adjusted EBITDA margin was improved
from 9.7% in 2021 to 11.9% in 2022 mainly
due to the positive impact on margin that
the software sales had in Q4 2022.
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
13
43
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 engage-
ments and service agreements, and on-
going time and material engagements
with a high likelihood of conversion and/
or prolongation, defined as total value of
planned continued engagements.
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.
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
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 insti-
tutions. Of the total order backlog for
Netcompany-Intrasoft DKK 6,123.7m is ex-
pected to be released in the period from
2024 to 2029.
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Contractual
committed
Netcompany
Intrasoft
Contractual
committed
Netcompany
Intrasoft
Total Total Total
Public segment Private segment Total segment
DKK million
Noncon-
tractual
comiitted
Non-
contractual
committed
Non-
contractual
committed
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
14
43
Employees
Netcompany employed an average of 7,353
FTEs in Q4 2022, which was an increase of
1,936 FTEs compared to Q4 2021 (5,417).
The increase in FTE’s was mainly driven by
the acquisition of Netcompany-Intrasoft
in October 2021 accounting for more than
3,200 FTEs.
Out of the more than 3,200 employees in
Netcompany-Intrasoft, around 725 were
either freelancers or Benelux contractors.
The number of client facing employees for
the Group was 6,871, which was an increase
of 1,797 compared to Q4 2021 5,074, mainly
driven by the acquisition of Netcompa-
ny-Intrasoft. The level of non-client facing
employees were 6.5% in Q4 2022, com-
pared to 6.3% in Q4 2021. On a sequentially
basis, the level of non-client facing employ-
ees decreased from Q3 2022, where the
level was 6.6%.
12 months rolling churn for Netcompany
Core was 22.8% compared to 22.9% in 2021.
In Netcompany-Intrasoft churn was un-
changed compared to 2021 at 19%.
As expected, the attrition rate continued
to decline in Q4. The three months rolling
churn for Netcompany Core and Netcom-
pany-Instrasoft was 14.2% and 14.1%, re-
spectively.
Avg. FTEs increased to 7,353
during Q4 2022
Avg. FTEs increased to 6,906
during 2022
Q
Netcompany
Core
YTD
Netcompany
Core
Q
Netcompany
Core
Q
Netcompany-
Intrasoft
YTD
Netcompany
Core
YTD
Netcompany-
Intrasoft
ADMINISTRATION
FREELANCERS
UNITED KINGDOM
POLAND
DENMARK
UK CONTRACTORS
VIETNAM
NETHERLANDS
NORWAY
GREECE
LUXEMBOURG
BENELUX CONTRAC-
TORS
BELGIUM
OTHER
Attrition rate
DK
NO
UK
NL
GR
LU
BE
LTM DEC 2021
LTM DEC 2022
3 MONTHS ROLLING
CHURN 2022
Q
Netcompany-
Intrasoft
YTD
Netcompany-
Intrasoft
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
15
43
Free cash flow and cash conversion rate
1
The Group generated a free cash flow of
DKK 323.4m in Q4 2022, which was an
increase of 140% compared to DKK 134.7m
in Q4 2021. Adjusted for taxes paid on
account, the Group generated a free cash
flow of DKK 361.4m in Q4 2022 compared
to DKK 160.9m in Q4 2021, corresponding
to a increase in free cash flow of 124.6%.
The increase was driven by a higher op-
erating result and an improvement in
working capital changes compared to the
same period last year. Changes in working
capital were mainly driven by the devel-
opment in net contract work in progress,
which decreased from DKK 842.7 million
end of Q3 2022 to DKK 681 million end of
Q4 2022. In addition, faster collection of
receivables also improved working capital
changes.
Cash conversion rate improved from 78%
in Q4 2021 to 133.7% in Q4 2022. Adjusted
for the taxes paid on account and the fair
value adjustments of the purchase price
of the acquired Netcompany Netherlands
(QDelft B.V.) recognised in both 2021 and
2022, cash conversion rate increased from
112.3% in Q4 2021 to 144.7% in Q4 2022.
For the full year, Netcompany generated
a free cash flow of DKK 602.7m corre-
sponding to an increase of DKK 194.7m
compared to 2021 driven by improved
earnings and improved working capital
management.
Cash conversion ratio increased from
66.4% in 2021 to 85.2% in 2022. Adjusting
for the fair value adjustments of the con-
tingent consideration, cash conversion
ratio for 2021 and 2022 would have been
94.3% compared to 89.8%, respectively.
Trade receivables
At 31 December 2022, Group trade receiv-
ables increased 7.8% from DKK 1,031.9m
to DKK 1,112m. In the same period revenue
increased by 31.9%, and 18.9% organically.
The lower increase in trade receivable
compared to revenue was a result faster
collection of receivables which also im-
pacted days sales outstanding positively.
Days sales outstanding decreased from
81.7 days in Q4 2021 to 66.8 days in Q4
2022.
The overdue part of trade receivables ex-
cluding expected credit losses decreased
from 35.6% by the end of Q4 2021 to
33.9% by the end of Q4 2022.
Cash flow and other significant
financial positions
1
Taxes paid within the Group are, due to local tax
regulations, paid on account in Q1 and in Q4. To
adjust for this timing mismatch between expensed
and paid corporate income taxes the free cash flow
should be viewed in a tax normalised manner to
better reflect the underlying development in free
cash flow based on operations rather than impact
from local tax legislation in Denmark.
DKK million
Not
overdue
0-30
days
30-60
days
60- 90
days
>90
days
Provi-
sion Total
Trade receivables, 31 December 746.5 224.0 61.4 33.4 63.2 -16.6 1,112.0
Trade receivables, 31 Decem- 675.3 217.3 73.9 28.0 54.4 -16.9 1,031.9
DKK million
Not
overdue
0-30
days
30-60
days
60- 90
days
>90
days
Provi-
sion Total
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
16
43
Dec
Dec
Q
WIP
CASH FLOW AND OTHER SIGNIFICANT
FINANCIAL POSITIONS
CONTINUED
Work in progress
At 31 December 2022, Netcompany’s work
in progress amounted to DKK 681m, rep-
resented by contract work in progress of
DKK 1,114.5m and prepayments received
from customers of DKK 433.5m.
Work in progress increased by 1.8% from
DKK 669.1m in Q4 2021 to DKK 681m in
Q4 2022. In the same period revenue
increased by 31.9% from DKK 1,152.1m
in Q4 2021 to DKK 1,519.3m in Q4 2022,
while revenue for the last twelve months
increased by 52.7%. Organically, revenue
increased by 18.9% in Q4 2022 compared
to Q4 2021, while organic revenue on a
twelve month basis increased by 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.
Work in progress overview
REVENUE
DKK million
Q
Q
LTM
Q
LTM
Funding and liquidity
Following the re-financing completed
in May 2022, the maturity for the Group
bank loan run to 2025 and can be pro-
longed twice by one year.
The combined committed facilities consti-
tutes DKK 2,847.3m and an additional
facility of DKK 2,000m, available only
for new acquisitions. At 31 December
2022, DKK 1,927.3m of the committed
lines were utilised on borrowings and
DKK 148.9m on guarantees, leaving a
total of DKK 2,771.1m available in unutilised
funding of which DKK 771.1m can be uti-
lised for normal operations if needed with
no additional costs or covenants.
In addition, Netcompany-Intrasoft had
utilised DKK 342.2m on local guarantees,
having no impact on the Group facilities
except for leverage.
Including net cash balance as of 31 De-
cember 2022 of DKK 336m available
Group funding was DKK 1,107.1m.
In October 2022, Netcompany acquired
technology from Smarter Airport A/S of
DKK 20 million.
Risk management
Please refer to the overview of risk factors
provided by the Group in the Annual Re-
port for 2022.
Capital structure
Debt ratio decreased during 2022 from
2.7x at the end of 2021 to 1.6x end of 2022,
which is fully compliant with current
covenants.
To maintain a satisfactory debt level ratio
Netcompany proposes not to pay out div-
idends or initiate additional share buyback
programmes for the year 2022.
Events after the balance sheet date
At the time of publication, Netcompany
Group A/S awaits the outcome of the
discussions with the Danish Business Au-
thority.
No events have occurred after the balance
sheet date, which would influence the
evaluation of this Annual Report.
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
17
43
Financial performance 2022
With the acquisition of Intrasoft
International S.A in November 2021 a
range of detailed performance metrics
were introduced for 2022, with the am-
bition to create full transparency of the
performance of Netcompany-Intrasoft as
a standalone business. During the year,
more business than anticipated was done
as joint projects shifting revenue and
margins from Netcompany Core to Net-
company-Intrasoft, making it less relevant
to view performance against individual
targets but rather focus on targets for the
Group all together.
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 con-
nection with the Q3 2022 report.
Group adjusted EBITDA margin in con-
stant 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.
Guidance 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 de-
mand for continued digitalisation of both
societies and enterprises will continue to
be present it is inherently difficult to pre-
dict timing of new projects in a recession
scenario, which is reflected in our expecta-
tions 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
potentially will have negative impact on
2022 Financial performance and guidance 2023
Actual Updated Original
Target performance target Target
Financial metrics in constant currencies 2023 2022 Q3 2022 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 in 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 grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
18
43
Free cash flow from operations is expect-
ed to increase in absolute terms from the
level of 2022. Free cash flow will for all
material matters be used to deleverage
significantly from the level of 1.6 at the
end of 2022.
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 unprec-
edented uncertainty in Europe, not only
related to macroeconomic factors but also
to continued high uncertainty regarding
the geopolitical environment in Europe as
well as globally, which might have even
further negative spillover effects on Eu-
rope.
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 be-
tween 8% and 12% and expect adjusted
EBITDA margin to be between 15% and
18%.
Salary costs are expected to increase
more than normal as a combination of
regular salary increases and increase of
variable 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-Mar-
ket” approach requires investments in
2023 and is expected to impact margin
revenue growth and margin. It is further
anticipated that price adjustments will be
lower than underlying CPIs as a recession-
ary 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
margin of around 0.5 percentage point.
EBITDA
guidance
Increaseof
remuneration
NewHQin
Copenhagen
realised
EBITDA
margin
NewHQin
Athensandin-
vestmentinto
ITplatforms
EBITDA
guidance
basedon
“likefor
like”
-
Expected margin for 2023 compared to realised 2022 margin
2022 FINANCIAL PERFORMANCE AND GUIDANCE 2023CONTINUED
-
-
Fewerwork-
ingdaysin
inDK
NOandUK
New“Go-To
Market”
approach-
resources
and
marketing
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
19
43
Financial Calendar
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.
2 March 2023
Annual General Meeting 2023
4 May 2023
Interim report for the first 3 months of
2022
16 August 2023
Interim report for the first 6 months of
2023.
2 November 2023
Interim report for the first 9 months of
2023.
Capital
Netcompany’s share capital is DKK 50m
divided into 50m shares. Netcompany
holds 901,359 treasury shares equivalent
to 1.8% of the share capital. The shares will
be used to honour the Group’s commit-
ments under its Long Term Incentive Plan.
Share-based incentive schemes/restricted
stock units
In total, 211,754 RSUs in relation to the
share-based incentive schemes were
issued at 31 December 2022, of which
54,313 were granted to Executive Manage-
ment and 157,441 were granted to Other
Key Management Personnel and Other
employees. The fair value of the RSUs
at grant was DKK 98.3m. The cost relat-
ed hereto is expensed over the vesting
period.
A total amount of DKK 0.1m was recog-
nised as personnel costs in the income
statement in Q4 2022 and DKK 24.9m in
2022. Following the release of Q4 2022 re-
port, 69,744 treasury shares recognised at
DKK 24.5m on equity, will be transferred
from reserves to Executive Management,
Other Key Management Personnel and
Other Employees part of the RSU pro-
gramme.
Additional information on the holdings of
Netcompany shares and restricted stock
units by members of the Board of Direc-
tors and Executive Management Board is
disclosed in the Remuneration Report.
Acquisition of Netcompany shares related
to the acquisition of Intrasoft International
S.A.
As part of the acquisition of Intrasoft In-
ternational S.A, an agreement was made
for a senior executive to convert the re-
ceived cash element of the purchase price
into Netcompany shares with a four year
timely lock up period not related to em-
ployment 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.
Contingent purchase price / restricted stock
units
In connection with the acquisition of 100%
of the shares of QDelft B.V. (now Net-
company Netherlands) in 2019, a total of
305,068 RSUs have been granted, which
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
To maintain a satisfactory debt level ratio
no dividends are currently propose for the
year 2022. In 2023, Netcompany expects
to utilise free cashflow to deleverage and
hence have no plans for proposing divi-
dends or initiate additional share buyback
programmes.
Shareholder information
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
20
43
Today, the Board of Directors and Exec-
utive Management considered and ap-
proved the interim consolidated financial
statements for Netcompany Group A/S
(“Netcompany” or “the company” and
together with all its subsidiaries “the
Group”) for the period 1 January 2022 to
31 December 2022. The Q4 2022 report
has not been audited or reviewed by the
company’s independent auditors.
The interim consolidated financial state-
ments have been prepared in accordance
with IAS 34 as adopted by the EU and
additional Danish regulations for the pres-
entation of interim reports by listed com-
panies. Furthermore, the interim report
has been prepared in accordance with the
accounting policies set out in the Group´s
Annual Report for 2022.
In our opinion, the accounting policies
used are appropriate, and the overall pres-
entation of the interim consolidated finan-
cial statements gives a true and fair view
of the Group’s assets, liabilities and finan-
cial position on 31 December 2022 and of
the results of the Group’s operations and
cash flows for the period 1 January 2022
to 31 December 2022.
We further consider that the Manage-
ment’s Review in the preceding pages
includes a true and fair account of the
development and performance of the
Group, the results for the period and the
financial position, as well as a description
of the principal risks and uncertainties
that the Group faces in accordance with
Danish disclosure requirements for listed
companies.
COPENHAGEN, 25 JANUARY 2023
Executive Management
André Rogaczewski
CEO
Hege Skryseth
Claus Jørgensen
COO
Åsa Riisberg
Thomas Johansen
CFO
Statement of the Board of Directors
and Executive Management
Susan Helen Cooklin
Bo Rygaard
Chairman of the Board
Juha Christensen
Vice Chairman of the Board
Board of Directors
Scanes Bentley
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
21
43
CONSOLIDATED INTERIM
FINANCIAL STATEMENTS
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
22
43
Income statement and Statement
of comprehensive income
DKK thousands
Note Q4 2022 Q4 2021 YTD 2022 YTD 2021
Income statement
Revenue 1 1,519,318 1,152,131 5,544,646 3,631,971
Cost of services 2 -999,307 -766,288 -3,772,174 -2,298,687
Gross profit
Sales and marketing costs -12,083 -18,803 -41,008 -36,715
Administrative costs 3 -198,826 -156,766 -763,881 -503,399
Special items 4 0 -7,729 5 -37,729
Other operating income / expense 6,328 -184 5,903 -184
EBITA
Amortisation -33,838 -24,267 -134,073 -51,424
Operating profit (EBIT)
Financial income 11,527 3,612 30,341 10,259
Financial expenses -34,103 -17,474 -100,261 -43,648
Fair value adj. of contingent consideration -7,874 29,421 -7,874 78,906
Income / loss, investment in joint venture 4,514 -4,929 -5,873 -21,732
Income / loss, investment in associates 727 0 790 0
Profit / loss before tax
Tax on the profit for the period -40,952 -34,931 -153,790 -153,316
Net profit / loss for the period
Of which
Non-controlling interest -151 -1,840 -617 -1,840
Netcompany Group A/S' share
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
23
43
DKK thousands
Note Q4 2022 Q4 2021 YTD 2022 YTD 2021
CONTINUED
Earnings per share
Earnings per share (DKK)
Diluted Earnings per share (DKK) 4.34 3.13 12.15 11.59
Statement of comprehensive income
Net profit / loss for the period
Other comprehensive income items that may be reclassified subsequently
to profit or loss:
Exchange rate adjustments on translating foreign subsidiaries -3,733 4,406 -8,011 10,792
Income / loss from financial assets recognised at fair value 0 0 0 0
Other comprehensive income items that may not be reclassified to profit
or loss:
Actuarial profit / loss on defined benefit plans 447 0 410 0
Other comprehensive income, net of tax
-3,286 4,406 -7,602 10,792
Of which
Non-controlling interest -517 415 208 415
Netcompany Group A/S' share -2,768 3,991 -7,810 10,378
Total comprehensive income
Of which
Non-controlling interest -668 -1,425 -409 -1,425
Netcompany Group A/S' share 212,812 159,623 595,559 586,520
INCOME STATEMENT AND STATEMENT
OF COMPREHENSIVE INCOME
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
24
43
Statement of financial position
31 December 31 December
DKK thousands
Note 2022 2021
Assets
Intangible assets 3,879,863 3,896,198
Tangible assets 332,158 316,895
Investment in joint venture 97,360 103,233
Investment in associates 8,001 7,211
Other securities and investments 1,324 2,102
Other receivables 54,932 26,225
Deferred tax assets 32,742 17,391
Total non-current assets
Trade receivables 7 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 8 1,114,527 1,019,974
Other receivables 38,276 39,557
Prepayments 124,410 74,900
Tax receivables 35,964 0
Total receivables
Cash
Total current assets
Assets held for sale
Total assets
31 December 31 December
DKK thousands
Note 2022 2021
Equity and liabilities
Share capital 50,000 50,000
Treasury shares -313,287 -241,409
Other reserves 410 0
Retained earnings
Equity attributable to Netcompany Group A/S
Non-controlling interest 6,180 6,796
Total equity
Borrowings 1,872,372 2,275,788
Pension obligations 13,772 18,198
Leasing liabilities 180,514 147,979
Other payables 0 94,498
Deferred tax liability 110,992 134,255
Total non-current liabilities
Borrowings 47,314 74,497
Leasing liabilities 85,420 98,645
Prebilled invoices 8 433,498 350,880
Trade payables 265,196 328,496
Pension obligations 5,829 0
Other payables 640,582 446,006
Provisions 11,550 8,839
Income tax payable
Total current liabilities
Liabilities held for sale
Total liabilities
Total equity and liabilities
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
25
43
Cash flow statement
DKK thousands
Q4 2022 Q4 2021 YTD 2022 YTD 2021
Operating profit (EBIT) 281,592 178,093 839,417 703,833
Depreciation and amortisation 73,618 52,419 272,653 139,201
Non-cash items 5,798 10,996 14,382 43,685
Working capital changes 165,891 9,841 -59,320 -189,249
Total
Income taxes paid
-96,516 -78,208 -234,084 -197,489
Financial income received
Financial expenses paid
-34,240 -12,189 -67,328 -37,298
Cash flow from operating activities
Net cash outflow on acquisition of subsidiaries
-50,011 -1,181,533 -50,011 -1,270,938
Cash and cash equivalents acquired
Other investments
Capitalisation of intangible assets
-23,820 -11,304 -98,046 -11,304
Acquisition of intangible assets
-20,000 0 -20,000 0
Acquisition of fixed assets -30,766 -15,899 -52,211 -46,246
Disposals of fixed assets
Other receivables (deposits) -6,257 -1,739 -28,927 -5,731
Cash flow from investment activities
-130,153 -1,105,740 -244,286 -1,254,484
Dividends paid 0 0 0 -49,100
Payment of treasury shares -30,535 -49,994 -131,487 -99,993
Proceeds from borrowings 0 1,350,000 2,182,836 1,350,000
Repayment of borrowings -105,425 -76,349 -2,610,033 -261,531
Repayment of right of use assets -20,076 -18,407 -87,332 -56,988
Cash flow from financing activities
-156,036 1,205,250 -646,017 882,388
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning
Effect of exchange rate changes on the balance cash held in foreign currencies 639 2,234 -5,433 6,281
Cash and cash equivalents at the end
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
26
43
Statement of changes in Equity
Foreign
currency Total equity, Non-
Share Treasury Share-based translation Other Retained Netcompany controlling
DKK thousands
capital shares remuneration subsidiaries Reserves earnings Group A/S interest Total equity
Equity at 1 October 2022 50,000 -302,896 54,344 1,581 -38 3,535,214 3,338,205 6,848 3,345,053
Profit for the period 0 0 0 0 0 215,581 215,581 -151 215,430
Other comprehensive income 0 0 0 -3,216 447 0 -2,768 -517 -3,286
Total comprehensive income
Treasury Shares for the period 0 -10,494 0 0 0 -20,016 -30,510 0 -30,510
Share-based remuneration for the period 0 103 -118 0 0 141 127 0 127
Total transactions with owners
Equity at 31 December 2022
Equity at 1 January 2022
Profit for the period 0 0 0 0 0 603,369 603,369 -617 602,752
Other comprehensive income 0 0 0 -8,219 410 0 -7,810 208 -7,602
Total comprehensive income 0 0 0 -8,219 410 603,369 595,559 -409 595,150
Treasury Shares for the period 0 -111,301 0 0 0 -19,628 -130,929 0 -130,929
Share-based remuneration for the period 0 39,423 -15,952 0 0 1,411 24,882 0 24,882
Movement of non-controlling interest 0 0 0 0 0 0 0 -207 -207
Total transactions with owners
Equity at 31 December 2022
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
27
43
Foreign
currency Total equity, Non-
Share Treasury Share-based translation Other Retained Netcompany controlling
DKK thousands
capital shares remuneration subsidiaries Reserves earnings Group A/S interest Total equity
Equity at 1 October 2021 50,000 -220,506 63,387 2,593 0 2,886,346 2,781,820 0 2,781,820
Profit for the period 0 0 0 0 0 155,632 155,632 -1,840 153,792
Other comprehensive income 0 0 0 3,991 0 0 3,991 415 4,406
Total comprehensive income
Treasury Shares for the period 0 -20,903 0 0 0 103,791 82,888 0 82,888
Share-based remuneration for the period 0 0 6,790 0 0 0 6,790 0 6,790
Movement of non-controlling interest 0 0 0 0 0 0 0 8,221 8,221
Total transactions with owners
Equity at 31 December 2021
STATEMENT OF CHANGES IN EQUITYCONTINUED
Equity at 1 January 2021
Profit for the period 0 0 0 0 0 576,142 576,142 -1,840 574,302
Other comprehensive income 0 0 0 10,378 0 0 10,378 415 10,792
Total comprehensive income 0 0 0 10,378 0 576,142 586,520 -1,425 585,095
Treasury Shares for the period 0 -70,902 0 0 0 103,791 32,889 0 32,889
Share-based remuneration for the period 0 4,493 27,699 0 0 0 32,192 0 32,192
Dividend paid 0 0 0 0 0 -49,100 -49,100 0 -49,100
Movement of non-controlling interest 0 0 0 0 0 0 0 8,221 8,221
Total transactions with owners
Equity at 31 December 2021
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
28
43
Group Denmark Norway UK Netherlands Intrasoft
DKK million
Q4 2022 Q4 2021 % change Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021
Revenue 998.1 758.5
31.6%
451.2 403.2 51.7 56.0 92.1 74.7 29.9 19.8 373.2 204.8
Cost of service -679.3 -529.3
28.3%
-262.0 -241.5 -38.7 -46.6 -66.8 -50.8 -23.1 -17.5 -288.7 -172.8
Gross profit 318.8 229.2 39.1% 189.2 161.8 13.0 9.3 25.3 23.9 6.8 2.3 84.5 31.9
Gross profit margin
31.9% 30.2% 1.7pp 41.9% 40.1% 25.2% 16.7% 27.5% 32.0% 22.9% 11.4% 22.6% 15.6%
Allocated costs -141.8 -109.9
29.0%
-72.2 -57.3 -9.8 -13.6 -14.3 -11.9 -9.3 -7.9 -36.2 -19.2
Adjusted EBITA before HQ costs
177.0 119.3 48.3% 117.0 104.4 3.2 -4.3 10.9 12.1 -2.4 -5.7 48.3 12.7
Adjusted EBITA margin before allo-
cated cost from HQ
17.7% 15.7% 2.0pp 25.9% 25.9% 6.2% -7.6% 11.9% 16.1% -8.1% -28.6% 12.9% 6.2%
Allocated costs from HQ 0.5 -7.0
-107.3%
0.3 -4.8 0.0 -0.9 0.1 -0.9 0.1 -0.4 0.0 0.0
EBITA
177.5 106.9 66.0% 117.4 96.1 3.2 -5.9 11.0 10.2 -2.4 -6.2 48.3 12.7
EBITA margin
17.8% 14.1% 3.7pp 26.0% 23.8% 6.2% -10.6% 12.0% 13.7% -8.0% -31.5% 12.9% 6.2%
Amortisation -21.9 -15.4 42.4% -10.7 -10.6 -1.2 -1.7 -2.3 -1.8 -1.0 -0.9 -6.7 -0.4
Operating profit
155.6 91.6 70.0% 106.7 85.5 2.0 -7.6 8.7 8.4 -3.4 -7.1 41.5 12.4
Operating profit margin
15.6% 12.1% 3.5pp 23.6% 21.2% 3.9% -13.5% 9.5% 11.2% -11.3% -36.0% 11.1% 6.0%
Segment information
Public Q4
NOTE 1
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
29
43
Group Denmark Norway UK Netherlands Intrasoft
DKK million
Q4 2022 Q4 2021 % change Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021
Revenue 521.3 393.6
32.4%
308.1 270.6 34.9 11.9 40.3 27.4 0.6 2.9 137.3 80.8
Cost of service -320.0 -237.0
35.0%
-162.4 -143.6 -27.9 -7.4 -24.2 -20.7 -0.3 -2.8 -105.3 -62.5
Gross profit
201.2 156.6 28.5% 145.7 127.0 7.0 4.4 16.2 6.7 0.3 0.1 31.9 18.3
Gross profit margin
38.6% 39.8% -1.2pp 47.3% 46.9% 20.1% 37.3% 40.1% 24.4% 54.1% 4.6% 23.3% 22.7%
Allocated costs -69.9 -55.1
26.8%
-45.4 -37.0 -6.8 -2.1 -5.7 -5.1 -0.1 -1.2 -11.7 -9.8
Adjusted EBITA before HQ costs
131.4 101.5 29.4% 100.3 90.1 0.2 2.3 10.4 1.6 0.2 -1.0 20.2 8.6
Adjusted EBITA margin before allo-
cated cost from HQ
25.2% 25.8% -0.6pp 32.6% 33.3% 0.5% 19.6% 25.9% 5.8% 38.9% -35.3% 14.7% 10.6%
Allocated costs from HQ 0.2 -3.6
-106.6%
0.2 -3.1 0.0 -0.1 0.0 -0.4 0.0 -0.1 0.0 0.0
Special items -0.0 -2.3
N/A
-0.0 -2.2 -0.0 0.0 -0.0 0.0 -0.0 -0.1 0.0 0.0
Other operating income / expense 6.3 -0.2 N/A 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6.3 -0.2
EBITA
137.9 95.4 44.5% 100.5 84.8 0.2 2.3 10.5 1.2 0.2 -1.2 26.5 8.4
EBITA margin
26.5% 24.2% 2.2pp 32.6% 31.3% 0.6% 19.3% 25.9% 4.4% 38.9% -41.4% 19.3% 10.4%
Amortisation -11.9 -8.9 34.3% -8.2 -7.1 -0.8 -0.5 -0.9 -1.0 -0.0 -0.1 -2.0 -0.1
Operating profit
126.0 86.5 45.6% 92.3 77.7 -0.6 1.8 9.5 0.2 0.2 -1.3 24.5 8.2
Operating profit margin
24.2% 22.0% 2.2pp 30.0% 28.7% -1.8% 14.9% 23.7% 0.7% 37.3% -45.3% 17.9% 10.2%
CONTINUED
Segment information
Private Q4
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
30
43
Group Denmark Norway UK Netherlands Intrasoft
DKK million
YTD 2022 YTD 2021 % change YTD 2022 YTD 2021 YTD 2022 YTD 2021 YTD 2022 YTD 2021 YTD 2022 YTD 2021 YTD 2022 YTD 2021
Revenue 3,594.9 2,210.4
62.6%
1,674.5 1,526.3 175.1 171.5 373.5 230.4 100.7 77.4 1,271.1 204.8
Cost of service -2,561.0 -1,477.6
73.3%
-1,035.8 -936.6 -149.1 -136.2 -275.7 -163.7 -84.4 -68.3 -1,015.9 -172.8
Gross profit
1,033.9 732.7 41.1% 638.7 589.8 26.0 35.3 97. 8 66.7 16.3 9.1 255.2 31.9
Gross profit margin
28.8% 33.1% -4.4pp 38.1% 38.6% 14.8% 20.6% 26.2% 28.9% 16.2% 11.7% 20.1% 15.6%
Allocated costs -513.3 -317.8
61.5%
-250.3 -206.1 -38.3 -31.7 -53.7 -33.4 -33.4 -27.5 -137.6 -19.2
Adjusted EBITA before HQ costs
520.6 414.9 25.5% 388.4 383.7 -12.3 3.6 44.2 33.3 -17.1 -18.4 117.5 12.7
Adjusted EBITA margin before allo-
cated cost from HQ
14.5% 18.8% -4.3pp 23.2% 25.1% -7.0% 2.1% 11.8% 14.5% -17.0% -23.8% 9.2% 6.2%
Allocated costs from HQ -23.7 -23.9
-0.8%
-16.2 -17.4 -2.0 -2.3 -4.2 -2.8 -1.4 -1.5 0.0 0.0
Special items 0.0 -23.5
N/A
0.0 -17.3 0.0 -2.5 0.0 -2.4 0.0 -1.3 0.0 0.0
Other operating income / expense 0.0 0.0 N /A 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
EBITA
496.9 367.5 35.2% 372.2 349.0 -14.3 -1.2 39.9 28.1 -18.5 -21.2 117.5 12.7
EBITA margin
13.8% 16.6% -2.8pp 22.2% 22.9% -8.1% -0.7% 10.7% 12.2% -18.4% -27.4% 9.2% 6.2%
Amortisation -87.0 -32.0 171.8% -45.1 -22.9 -5.3 -3.1 -11.2 -3.7 -4.0 -2.0 -21.3 -0.4
Operating profit
409.9 335.5 22.2% 3 27.1 326.1 -19.6 -4.2 28.7 24.4 -22.5 -23.2 96.2 12.4
Operating profit margin
11.4% 15.2% -3.8pp 19.5% 21.4% -11.2% -2.5% 7.7% 10.6% -22.3% -29.9% 7.6% 6.0%
CONTINUED
Segment information
Public 12 months
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
31
43
Group Denmark Norway UK Netherlands Intrasoft
DKK million
YTD 2022 YTD 2021 % change YTD 2022 YTD 2021 YTD 2022 YTD 2021 YTD 2022 YTD 2021 YTD 2022 YTD 2021 YTD 2022 YTD 2021
Revenue 1,949.7 1,421.6
37.2%
1,202.7 1,064.0 117.0 95.8 166.5 176.3 2.0 4.6 461.6 80.8
Cost of service -1,211.2 -821.0
47.5%
-633.5 -551.8 -101.4 -65.8 -108.7 -1 37.0 -1.5 -3.9 -366.0 -62.5
Gross profit
738.5 600.5 23.0% 569.2 512.2 15.6 30.0 57. 8 39.3 0.5 0.8 95.5 18.3
Gross profit margin
37.9% 42.2% -4.4pp 47.3% 48.1% 13.3% 31.3% 34.7% 22.3% 24.0% 16.7% 20.7% 22.7%
Allocated costs -254.2 -184.0
38.2%
-164.1 -128.6 -23.2 -14.5 -20.5 -29.6 -0.5 -1.6 -45.9 -9.8
Adjusted EBITA before HQ costs
484.3 416.5 16.3% 405.0 383.5 -7.7 15.5 37.3 9.7 0.0 -0.8 49.6 8.6
Adjusted EBITA margin before allo-
cated cost from HQ
24.8% 29.3% -4.5pp 33.7% 36.0% -6.5% 16.2% 22.4% 5.5% 0.3% -17.1% 10.7% 10.6%
Allocated costs from HQ -13.6 -14.4
-5.5%
-10.9 -10.8 -1.1 -1.1 -1.6 -2.4 -0.0 -0.1 0.0 0.0
Special items 0.0 -14.2
N/A
0.0 -10.9 0.0 -1.0 0.0 -2.1 0.0 -0.1 0.0 0.0
Other operating income / expense 5.9 -0.2 N/A 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.9 -0.2
EBITA
476.6 387.8 22.9% 394.2 361.8 -8.8 13.4 35.7 5.2 -0.0 -1.0 55.5 8.4
EBITA margin
24.4% 27.3% -2.8pp 32.8% 34.0% -7.5% 14.0% 21.4% 2.9% -0.9% -22.0% 12.0% 10.4%
Amortisation -47.1 -19.4 142.5% -32.2 -14.7 -3.2 -1.5 -4.3 -3.0 -0.1 -0.1 -7.3 -0.1
Operating profit
429.5 368.3 16.6% 361.9 3 47.1 -11.9 11.9 31.3 2.2 -0.1 -1.2 48.2 8.2
Operating profit margin
22.0% 25.9% -3.9pp 30.1% 32.6% -10.2% 12.5% 18.8% 1.2% -3.8% -24.9% 10.4% 10.2%
CONTINUED
Segment information
Private 12 months
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
32
43
Segment information related to geographical areas
Q4 2022
DKK thousands
Denmark Norway UK Netherlands Belgium Luxembourg Greece Other Total
Revenue from external customers 775,838 86,980 135,703 33,951 112,306 84,627 191,829 98,084 1,519,318
Q4 2021
DKK thousands
Denmark Norway UK Netherlands Belgium Luxembourg Greece Other Total
Revenue from external customers 675,413 68,319 105,049 23,087 109,944 7,039 118,032 45,248 1,152,131
YTD 2022
DKK thousands
Denmark Norway UK Netherlands Belgium Luxembourg Greece Other Total
Revenue from external customers 2,915,238 295,161 555,171 109,019 672,028 155,876 584,014 258,139 5,544,646
YTD 2021
DKK thousands
Denmark Norway UK Netherlands Belgium Luxembourg Greece Other Total
Revenue from external customers
2,591,948 267,740 409,572 82,447 109,944 7,039 118,032 45,248 3,631,971
CONTINUED
Segment information
Geographical
Geographical Full year
Segment information related to geographical areas
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
33
43
Administrative costs
Cost of services
NOTE 2
NOTE 3
DKK thousands
Q4 2022 Q4 2021 YTD 2022 YTD 2021
Cost of services -293,446 -197,624 -983,198 -380,909
Salaries -699,615 -557,540 -2,764,862 -1,888,564
Depreciation -6,245 -11,124 -24,113 -29,214
Cost of services total
-999,307 -766,288 -3,772,174 -2,298,687
DKK thousands
Q4 2022 Q4 2021 YTD 2022 YTD 2021
Administrative costs -102,069 -78,005 -369,410 -237,845
Salaries -63,223 -61,732 -280,005 -206,990
Depreciation -33,535 -17,029 -114,466 -58,564
Administrative costs total
-198,826 -156,766 -763,881 -503,399
Special items
NOTE 4
DKK thousands
Q4 2022 Q4 2021 YTD 2022 YTD 2021
Costs related to M&A 0 -7,729 5 -37,729
Total special items
0 -7,729 5 -37,729
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
34
43
Financial income and expenses
NOTE 5
DKK thousands
Q4 2022 Q4 2021 YTD 2022 YTD 2021
Financial Income
Exchange rate adjustments 10,741 3,472 27,322 10,039
Other financial income 786 140 3,020 220
Financial income total
11,527 3,612 30,341 10,259
Financial expenses
Interest expense, bank loan -18,509 -6,996 -41,804 -14,510
Interest expense, leasing -2,608 -1,394 -7,140 -4,103
Exchange rate adjustments -10,604 -4,316 -34,715 -12,906
Other financial expenses -2,381 -4,768 -16,602 -12,130
Financial expenses total
-34,103 -17,474 -100,261 -43,648
The earnings per share was affected by
the fair value adjustments of the contin-
gent consideration and would have been
4.55 in Q4 2022 and 2.57 in Q4 2021 equal
to 12.43 for 2022 and 10.13 in 2021, if nor-
malised for fair value adjustments.
Earnings per share
NOTE 6
DKK thousands
Q4 2022 Q4 2021 YTD 2022 YTD 2021
Earnings per share - EPS (DKK) 4.39 3.17 12.27 11.73
Diluted earnings per share - EPS-D (DKK) 4.34 3.13 12.15 11.59
Profit
215,581 155,632 603,369 576,142
Average number of shares 50,000 50,000 50,000 50,000
Average number of treasury shares 887 843 806 906
Average number of shares in circulation 49,113 49,157 49,194 49,094
Average number of outstanding restricted stock units 514 610 478 592
Average number of diluted shares in circulation 49,627 49,767 49,672 49,686
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
35
43
The Group is continuously conducting
individual assessments of bad debt.
If this leads to an assessment that the
Group will not be able to collect the
amount accounted for an allowance for
bad debt is made. At 31 December 2022,
the Group recognised a provision for ex-
pected credit losses of DKK 16.6m (DKK
16.9m). In 2022, the Group realised a credit
loss of DKK 0.7m (DKK 5.8m)
The credit quality of trade receivables
at 31 December 2022 is considered
satisfactory.
Trade receivables
NOTE 7
31 December 31 December
DKK thousands
2022 2021
Not overdue 746,480 675,255
0-30 days overdue 223,963 217,253
31-60 days overdue 61,401 73,940
61-90 days overdue 33,440 27,954
Over 90 days overdue 63,237 54,398
Total trade receivables excl. expected credit loss
1,128,521 1,048,800
Expected credit loss -16,567 -16,920
Total trade receivables
1,111,954 1,031,880
Contract work in progress
NOTE 8
31 December 31 December
DKK thousands
2022 2021
Selling price of work performed on fixed price projects 3,811,941 2,594,288
Invoiced amount on fixed price projects -3,130,912 -1,925,194
Total contract work in progress
681,029 669,094
Net value – stated on a contract-per-contract basis – is
presented in the statement of financial position as follows:
Contract work in progress 1,114,527 1,019,974
Prebilled invoices -433,498 -350,880
Total contract work in progress
681,029 669,094
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
36
43
Income Statement classified by function
DKK thousands
Q4 2022 Q4 2021 YTD 2022 YTD 2021
Income statement
Revenue 1,519,318 1,152,131 5,544,646 3,631,971
Cost of services, incl. depreciation and amortisation -999,307 -766,288 -3,772,174 -2,298,687
Gross profit
520,012 385,843 1,772,472 1,333,284
Sales and marketing costs, incl. depreciation and amortisation -12,083 -18,803 -41,008 -36,715
Administrative costs, incl. depreciation and amortisation -232,664 -188,762 -897,950 -592,552
Other operating income / expense 6,328 -184 5,903 -184
Operating profit (EBIT)
281,592 178,093 839,417 703,833
Financial income 11,527 3,612 30,341 10,259
Financial expenses -34,103 -17,474 -100,261 -43,648
Fair value adjustment of contingent consideration -7,874 29,421 -7, 874 78,906
Income / loss from investment in joint venture 4,514 -4,929 -5,873 -21,732
Income / loss from investment in associates
727 0 790 0
Profit / loss before tax
256,382 188,723 756,541 727,618
Tax on the profit for the period -40,952 -34,931 -153,790 -153,316
Net profit / loss for the period
215,430 153,792 602,752 574,302
Depreciation and Amortisation have been presented as follows in the
income statement:
Cost of services -6,245 -11,124 -24,113 -29,214
Administrative costs -67,373 -41,295 -248,540 -109,987
Depreciation and amortisation
-73,618 -52,419 -272,653 -139,201
NOTE 9
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
37
43
As part of its contract commitments with
customers, the Group has through its
banks provided performance guarantees
of DKK 491m (DKK 512.2m).
There are no collaterals provided for
the Group’s bank loan.
In Q4 2022, Netcompany recognised
revenue from Smarter Airports A/S of
DKK 12.7m.
The Group is in 2022 as well as in 2021 part
of some legal claims. The outcome of these
disputes is not considered likely to impact
the Groups financial position significantly,
besides what is allready recognised in the
balance sheet.
Related party transactions
Collateral provided and contingent liabilities
NOTE 10
NOTE 11
The annual consolidated financial state-
ments of the Group are prepared in ac-
cordance with IFRS as adopted by the
European Union. The interim consolidated
financial statements included in this Q4
2022 financial report has been prepared
in accordance with IAS 34 “Interim Finan-
There are no collaterals provided for
the Group’s bank loan.
cial Reporting” as adopted by the Europe-
an Union. The accounting policies applied
are consistent with those applied in the
consolidated Annual Report for the year
ended 31 December 2022 for Netcompany
Group A/S.
Accounting policies
NOTE 12
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
38
43
% change % change
DKK million
Q4 2022 Q4 2021 Q4 YTD 2022 YTD 2021 YTD
Income statement
Public revenue 998.1 758.5 31.6% 3,594.9 2,210.4 62.6%
Private revenue 521.3 393.6
32.4%
1,949.7 1,421.6
37.2%
Revenue by segments, total
1,519.3 1,152.1 31.9% 5,544.6 3,632.0 52.7%
Development revenue 723.7 783.3 -7.6% 2,640.2 2,302.4 14.7%
Maintenance revenue 779.7 367.3
112.3%
2,876.1 1,328.0
116.6%
License revenue 15.9 1.5
924.2%
28.3 1.5
1728.9%
Revenue by types, total
1,519.3 1,152.1 31.9% 5,544.6 3,632.0 52.7%
Organic revenue 1,369.7 866.5
18.9%
4,172.8 3,346.4
14.9%
Non-organic revenue 149.6 285.6
-47.6%
1,371.9 285.6
380.4%
Revenue by growth, total
1,519.3 1,152.1 31.9% 5,544.6 3,632.0 52.7%
Special items 0.0 -7.7
-100.0%
0.0 -37.7
-100.0%
Adjusted EBITDA 348.9 238.2
46.4%
1,106.2 880.9
25.6%
EBITDA 355.2 230.5
54.1%
1,112.1 843.0
31.9%
Adjusted EBITA 309.1 210.3
47.0%
967.6 793.2
22.0%
EBITA 315.4 202.4
55.9%
973.5 755.3
28.9%
Operating profit (EBIT) 281.6 178.1
58.1%
839.4 703.8
19.3%
Net financials -22.6 -13.9
62.9%
-69.9 -33.4 109.4%
Net profit / loss 215.4 153.8 40.1% 602.8 574.3 5.0%
Financial position
Capex -74.6 -27.2
174.2%
-170.3 -57.6
195.8%
Total assets 7,193.9 7,021.1
2.5%
7,193.9 7,021.1
2.5%
Equity 3,526.9 3,037.9
16.1%
3,526.9 3,037.9
16.1%
Dividends Paid 0.0 0.0
N/A
0.0 49.1
-100.0%
Net increase in cash and cash equivalents 111.8 261.4 -57.2% -117.3 93.5 -225.5%
Free cash flow 323.4 134.7
140.0%
602.7 408.0
47.7%
Free cash flow (tax normalised) 361.4 160.9 124.6% 642.6 422.4 52.1%
Financial figures and highlights Comparative
NOTE 13
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
39
43
FINANCIAL HIGHLIGHTS AND KEY FIGURES COMPARATIVECONTINUED
Earnings per share
Earnings per share (DKK) 4.39 3.17
38.6%
12.27 11.73
4.6%
Diluted earnings per share (DKK) 4.34 3.13
38.9%
12.15 11.59
4.8%
Employees
Average number of full-time employees 7,353 5,417 35.7% 6,906 3,787 82.4%
Financial ratios
Revenue growth 31.9% 49.1%
-17.2pp
52.7%
27.9%
24.7pp
Gross profit margin 34.2% 33.5%
0.7pp
32.0%
36.7%
-4.7pp
Adjusted EBITDA margin 23.0% 20.7%
2.3pp
20.0%
24.3%
-4.3pp
EBITDA margin 23.4% 20.0%
3.4pp
20.1%
23.2%
-3.2pp
Adjusted EBITA margin 20.3% 18.3%
2.1pp
17.5%
21.8%
-4.4pp
EBITA margin 20.8% 17.6%
3.2pp
17.6%
20.8%
-3.2pp
Operating profit margin 18.5% 15.5%
3.1pp
15.1%
19.4%
-4.2pp
Effective tax rate 16.0% 18.5%
-2.5pp
20.3%
21.1%
-0.7pp
Return on equity 6.6% 5.6%
0.9pp
18.4%
21.0%
-2.6pp
Solvency ratio 49.0% 43.3%
5.8pp
49.0%
43.3%
5.8pp
ROIC 4.3% 4.0%
0.3pp
12.0%
14.8%
-2.8pp
ROIC (Adjusted for Goodwill) 13.1% 14.5%
-1.4pp
36.6%
54.1%
-17.5pp
Cash conversion ratio 133.7% 78.0% 55.7pp 85.2% 66.4% 18.8pp
Cash conversion ratio (tax normalised) 149.5% 93.2% 56.3pp 90.9% 68.8% 22.1pp
% change % change
DKK million
Q4 2022 Q4 2021 Q4 YTD 2022 YTD 2021 YTD
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
40
43
Financial figures and highlights Qs
NOTE 17
DKK million
Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021
Income statement
Public revenue 998.1 885.4 836.9 874.6 758.5 461.6 488.0 502.3
Private revenue 521.3 462.8 468.9 496.8 393.6 336.4 338.7 352.8
Revenue by segments, total
1,519.3 1,348.1 1,305.8 1,371.5 1,152.1 798.0 826.7 855.1
Development revenue 723.7 657.5 604.2 654.8 783.3 488.4 513.2 517.5
Maintenance revenue 779.7 683.5 698.9 713.9 367.3 309.6 313.5 337.7
License revenue 15.9 7.1 2.6 2.7 1.5 0.0 0.0 0.0
Revenue by types, total
1,519.3 1,348.1 1,305.8 1,371.5 1,152.1 798.0 826.7 855.1
Organic revenue 1,369.7 943.5 886.7 972.9 866.5 798.0 826.7 855.1
Non-organic revenue 149.6 404.6 419.1 398.5 285.6 0.0 0.0 0.0
Revenue by growth, total
1,519.3 1,348.1 1,305.8 1,371.5 1,152.1 798.0 826.7 855.1
Special items 0.0 0.0 0.0 -0.0 -7.7 -30.0 0.0 0.0
Adjusted EBITDA 348.9 308.9 188.8 259.6 238.4 221.1 186.6 234.8
EBITDA 355.2 308.4 188.7 259.8 230.5 191.1 186.6 234.8
Adjusted EBITA 309.1 275.5 156.0 227.0 210.3 199.9 166.7 216.3
EBITA 315.4 275.0 155.8 227.2 202.4 169.9 166.7 216.3
Operating profit (EBIT) 281.6 240.1 123.2 194.6 178.1 160.9 157.7 207.2
Net financials -22.6 -16.2 -18.8 -12.4 -13.9 -6.2 -6.7 -6.6
Net profit / loss 215.4 169.7 85.0 132.7 153.8 108.6 112.4 199.5
Financial position
Capex -74.6 -45.0 -31.6 -19.1 -27.2 -7.1 -5.0 -18.2
Total assets 7,193.9 7,013.4 7,052.9 7,032.8 7,021.1 4,127.7 4,090.0 4,074.5
Equity 3,526.9 3,345.1 3,169.7 3,130.0 3,037.9 2,781.8 2,666.4 2,595.9
Net increase in cash and cash equivalents 111.8 -24.0 -68.0 -137.1 261.4 16.3 -134.6 -49.6
Free cash flow 323.4 221.5 7.3 50.5 134.7 182.9 -10.2 100.6
Free cash flow (tax normalised) 361.4 168.2 -20.5 126.8 160.9 136.9 -49.2 173.8
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
41
43
NOTE 17 FINANCIAL FIGURES AND HIGHLIGHTS QS
Earnings per share
Earnings per share (DKK) 4.39 3.45 1.72 2.71 3.17 2.21 2.29 4.06
Diluted Earnings per share (DKK) 4.34 3.42 1.70 2.68 3.13 2.19 2.26 4.02
Employees
Average number of full-time employees 7,353 7,039 6,719 6,513 5,417 3,385 3,238 3,109
Financial ratios
Revenue growth 31.9% 68.9% 58.0% 60.4% 49.1% 14.9% 22.4% 22.9%
Gross profit margin 34.2% 34.9% 27.9% 30.4% 33.5% 41.2% 35.5% 38.1%
Adjusted EBITDA margin 23.0% 22.9% 14.5% 18.9% 20.7% 27.7% 22.6% 27.5%
EBITDA margin 23.4% 22.9% 14.4% 18.9% 20.0% 23.9% 22.6% 27.5%
Adjusted EBITA margin
20.3% 20.4% 11.9% 16.6% 18.3% 25.1% 20.2% 25.3%
EBITA margin
20.8% 20.4% 11.9% 16.6% 17.6% 21.3% 20.2% 25.3%
Operating profit margin
18.5% 17.8% 9.4% 14.2% 15.5% 20.2% 19.1% 24.2%
Effective tax rate
16.0% 23.4% 15.5% 25.5% 18.5% 27.2% 22.9% 18.2%
Return on equity
6.6% 5.5% 2.9% 4.6% 5.6% 4.2% 4.5% 8.4%
Solvency ratio
49.0% 47.7 % 44.9% 44.5% 43.3% 67.4% 65.2% 63.7%
ROIC
4.3% 4.1% 2.0% 3.3% 4.0% 3.6% 3.7% 6.7%
ROIC (adjusted for Goodwill)
13.1% 12.7% 6.2% 10.8% 14.5% 13.8% 13.8% 27.8%
Cash conversion ratio 133.7% 112.5% 6.6% 32.0% 78.0% 158.3% -8.5% 48.7%
Cash conversion rate (tax normalised) 149.5% 85.4% -18.5% 80.2% 93.2% 118.5% -41.2% 84.1%
DKK million
Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021
CONTINUED
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
42
43
Organic
revenue
=
Revenue not classified as
non-organic revenue
Non-organic
revenue
=
Revenue from acquired businesses
the first 12 months after acquisition
Organic
Growth
1
=
Organic revenue current year x 100
Revenue last year
Gross profit
margin
1,2
=
Gross profit x 100
Revenue
EBITA
1,2
= Operating profit + Amortisation
EBITA
margin
1,2
=
EBITA x 100
Revenue
Adjusted
EBITA
=
EBITA + Special items + Other
operating income
Adjusted
EBITA
margin
=
Adjusted EBITA x 100
Revenue
Capex
1,2
=
Cost capitalised 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
Days sales
outstanding
1,2
=
Trade receivables x days
Revenue
Return on
equity
2
=
Net profit for the period x 100
Average equity
Return on
invested
capital
(ROIC)
1,2
=
Net profit x 100
Average invested capital
ROIC
(Adjusted for
Goodwill)
1
=
Net profit x 100
Average invested capital
– average Goodwill
Solvency
(equity ratio)
1
=
Equity x 100
Total assets
Operating
profit margin
1
=
Operating profit x 100
Revenue
EBITDA
1,2
= EBIT + Depreciation and amortisation
EBITDA
margin
=
EBITDA x 100
Revenue
Adjusted
EBITDA
=
EBITDA + Special items + Other
operating income
Adjusted
EBTIDA
margin
=
Adjusted EBITDA x 100
Revenue
EPS
1
=
Net profit
Average outstanding shares
EPS diluted
1
=
Net profit
Average outstanding shares
+ Diluted shares
Free cash
flow
1,2
=
Cash flow from operating activities
- Capex
1
Key figures defined according to IFRS.
2
Key figures defined according to “Recommendations &
Financial Ratios” issued by the Danish Finance Society.
Formulas
Key figures and financial ratios have been compiled in accordance with the following calculation formulas.
Netcompany grew 32% and realised EBITDA margin of 23% as well as continued strong free cash flow in Q4 2022
Grønningen 17, 1270 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2023
25 January 2023
43
43
Disclaimer
This report contains forward-looking
statements including, but not limited
to, the statements and expectations
contained in the outlook section. For-
ward-looking statements are statements
(other than statements of historical fact)
relating to future events and Netcompa-
ny’s anticipated or planned financial and
operational performance.
The words ‘may’, ‘will’, ‘will continue’,
‘should’, ‘expect’, ‘foresee’, ‘anticipate’,
‘believe’, ‘estimate’, ‘plan’, ‘predict’, ‘intend’
or variations of these words, including
negatives thereof, as well as other state-
ments regarding matters that are not
historical fact or regarding future events
or prospects, constitute forward-looking
statements.
Netcompany has based these for-
ward-looking statements on its current
views with respect to future events and
financial performance. These views in-
volve a number of risks and uncertainties,
which could cause actual results to differ
materially from those predicted in the
forward-looking statements and from
the past performance of Netcompany.
Although Netcompany believes that the
estimates and projections reflected in the
forward-looking statements are reasona-
ble, they may prove materially incorrect,
and actual results may materially differ,
e.g. as the result of risks related to the
industry in general or Netcompany in par-
ticular, including those described in Net-
company Group A/S’ Annual Report 2022
and other information made available by
Netcompany.
Factors that may affect future results
include, but are not limited to, global
and economic conditions, including cur-
rency exchange rate and interest rate
fluctuations, delay or failure of projects
related to research and/or development,
unexpected contract breaches or ter-
minations, unplanned loss of patents,
government-mandated or market-driven
price decreases for Netcompany’s prod-
ucts, introduction of competing products,
reliance on information technology, Net-
company’s ability to successfully market
current and new products, exposure to
product liability, litigation and investiga-
tions, regulatory developments, actual or
perceived failure to adhere to ethical mar-
keting practices, unexpected growth in
costs and expenses, failure to recruit and
retain the right employees, and failure to
maintain a culture of compliance.
As a result, forward-looking statements
should not be relied on as a prediction
of actual results. Netcompany undertakes
no obligation to update or revise any for-
ward-looking statements, whether as a
result of new information, future events
or otherwise, except to the extent re-
quired by law.
The Annual Report 2022 of Netcompany
Group A/S is available at our website
www.netcompany.com
About Netcompany
Netcompany delivers business critical IT
solutions and consultancy that help our
customers to achieve significant business
benefits in a digitised world. Netcompany
also helps our customers to manage and
operate IT solutions both on location and
in the cloud.