Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
Netcompany
Q3 2023
Company Announcement
Nine months ended 30 September 2023
Satisfactory results in uncertain market conditions
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
2
38
Summary
Revenue increased by 8.4% (constant 9.2%)
DKK 1,461.7m
Q
DKK 1,348.1m
Q
Conference call details
In connection with the publication of the results for Q3 2023, Netcompany will host a
conference call on 2 November at 11.00 CET.
The conference call can be followed live via
https://netcompany-as.eventcdn.net/events/interim-report-for-the-first-9-months-of-2023
For further dial-in details please visit the company’s website; www.netcompany.com
DKK 4,495.8m
YTD
DKK 4,025.3m
YTD
DKK 219.9m
Q
DKK 308.9m
Q
DKK 657.1m
YTD
DKK 757.3m
YTD
Q
22.9%
Q
YTD
YTD
15.0%
Adj. EBITDA decreased 28.8%
Adj. EBITDA margin decreased by 7.9pp
18.8%
14.6%
DKK 100.4m
Q
DKK 221.5m
Q
DKK 169.5m
YTD
DKK 279.4m
YTD
Q
112.5%
Q
YTD
YTD
93.0%
60.0%
53.0%
7,760 FTEs
Q
7,039 FTEs
Q
7,652 FTEs
YTD
6,757 FTEs
YTD
Average employees increased by 721 FTEs
Q
1.8x
Q
1.6x
Debt leverage improved by 9.3%
Cash conversion ratio was 93%
Free cash flow was DKK 100.4m
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
3
38
“In Q3, we grew revenue by 9.2% - once again driven by strong results in the international operation of the Group.
The prolonged decision processes experienced in Q2 in the Danish private segment were extended into Q3 too,
which led to lower revenue in Denmark than anticipated. At the same time we saw stronger than anticipated
growth in Netcompany-Intrasoft.
FTEs grew in line with revenue at 10.2% - driven by hirings in the international operation of the Group.
Despite the current softness in our operation in Denmark, our assesment is that market demand for digital
transformation remains intact, and our expectation is that more pipeline cases will begin to convert during Q4
2023 and into Q1 2024.
Based on realised performance and outlook for the remaining part of 2023, we narrow our expectation to revenue
growth to between 8% and 10% and we expect margin to be realised in the lower end of the guided range of 15% to
18% - both within original guided target ranges.
We remain committed to our mid-term financial targets.”
André Rogaczewski
NETCOMPANYCEOANDCOFOUNDER
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
4
38
Performance overview Q3
Q3 2023 Q3 2023 % change
% change
DKK million
(reported) (constant)* Q3 2022 (reported) (constant)*
Revenue 1,461.7 1,471.9 1,348.1 8.4% 9.2%
Cost of services -1,059.3 -1,067.0 -877.0 20.8% 21.7%
Gross profit 402.4 404.9 471.1 -14.6% -14.1%
Gross profit margin 27.5% 27.5% 34.9% -7.4pp -7.4pp
Sales and marketing costs -13.0 -13.0 -10.6 22.9% 23.1%
Administrative costs -215.1 -216.8 -185.1 16.2% 17.2%
Adjusted EBITA 174.3 175.0 275.5 -36.7% -36.5%
Adjusted EBITA margin 11.9% 11.9% 20.4% -8.5pp -8.5pp
Other operating income / expense -0.0 -0.0 -0.5 -99.8% -99.8%
EBITA 174.3 175.0 275.0 -36.6% -36.4%
EBITA margin 11.9% 11.9% 20.4% -8.5pp -8.5pp
Amortisation -35.8 -35.8 -34.9 2.6% 2.6%
Operating profit (EBIT) 138.5 139.2 240.1 -42.3% -42.0%
Operating profit margin 9.5% 9.5% 17.8% -8.3pp -8.4pp
Net financials -35.6 -35.5 -16.2 119.4% 119.1%
Income / loss, joint venture / associates -2.3 -2.3 -2.5 -5.5% -5.5%
Profit / loss before tax 100.6 101.3 221.4 -54.6% -54.2%
Tax -20.7 -20.6 -51.7 -60.1% -60.1%
Effective tax rate 20.5% 20.3% 23.4% -2.8pp -3.0pp
Net profit / loss 80.0 80.7 169.7 -52.9% -52.4%
Additional KPIs
Adjusted EBITDA 219.9 220.9 308.9 -28.8% -28.5%
Adjusted EBITDA margin 15.0% 15.0% 22.9% -7.9pp -7.9pp
Free cash flow 100.4 N/A 221.5 -54.7% N/A
Cash conversion rate 93.0% N/A 112.5% -19.4pp N/A
*Constant currencies measured using average exchange rates for Q3 2022
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
5
38
increase in the interest rate level compared
to the same period last year, which led to
an increase of DKK 12.5m in interest costs
related to Group loan.
Income taxes in Q3 2023 were DKK 20.7m
compared to DKK 51.7m in the same quar-
ter last year. Effective tax rate was 20.5%
compared to 23.4% for Q3 2022.
DKK 215.1m in Q3 2023. Depreciation ac-
counted for DKK 13.4m of the total increase
of DKK 30m, caused by increased depre-
ciation related to leases. The main part
related to the movement to the new HQs in
Copenhagen and Athen. In addition, costs
related to the enhanced “Go-To-Market”
model impacted administrative costs by
around DKK 7m – also in line with Q1 and
Q2 2023.
As a consequence of the lower gross profit
and increased administrative costs, adjust-
ed EBITA margin was 8.5 percentage points
lower at 11.9% compared to 20.4% in the
same period last year.
Amortisation were DKK 35.8m – in line with
the level of amortisation in the same period
last year.
Operating profit (EBIT) was DKK 101.5m
lower than for Q3 2022 yielding a margin of
9.5% compared to 17.8% for Q3 2022.
Net financials were negative DKK 35.6m
compared to negative DKK 16.2m for the
same period last year. The main reason
for the increased financial costs was the
PERFORMANCEOVERVIEWQ3
CONTINUED
Reported revenue grew 8.4% (constant
9.2%) in Q3 2023 to DKK 1,461.7m, driven
by the international operation of the Group.
Revenue from public clients increased by
13.4%, whereas revenue from private cli-
ents decreased by 1.1% compared to the
same period last year. Client facing FTEs
grew 10.6% and FTEs at the end of Q3 2023
amounted to 7,760.
Gross profit margin was 27.5%, which was
7.4 percentage points lower than the same
period in 2022. The lower gross profit mar-
gin was mainly driven by lower margins in
the Danish, Norwegian and UK business
units.
Sales and marketing costs were 22.9%
higher than the same period in 2022 at
DKK 13m as a result of the generally higher
level of marketing spend realised during
the quarter and in line with the enhanced
“Go-To-Market” approach. Our recent win
in the UK of the DALAS framework, would
not have been possible without our product
and platform focus in the enhanced “Go-
To-Market” approach.
Administrative costs increased by 16.2% to
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
6
38
Business Segments Q3
DKK million
Q3 2023
Constant (2022 rate)
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,471.9 677.2 519.1 161.2 76.8 37.6
Gross profit 409.5 273.2 88.2 35.2 3.4 9.6
Gross profit margin 27. 8 % 40.3% 17.0% 21.8% 4.5% 25.5%
Local admin costs -176.5 -92.9 -44.7 -17.9 -14.4 -6.6
Adjusted EBITDA before allocated cost from HQ 233.0 180.3 43.5 17.2 -11.0 3.0
Adjusted EBITDA margin before allocated cost from HQ 15.8% 26.6% 8.4% 10.7% -14.3% 7.9%
Allocated costs from HQ -12.1 -8.3 0.0 -2.1 -1.0 -0.6
Depreciation -45.9 -23.3 -16.3 -2.7 -2.0 -1.5
Amortisation -35.8 -17.1 -11.8 -4.0 -1.9 -1.1
Other operating income / expense -0.0 0.0 -0.0 0.0 0.0 0.0
EBIT 139.2 131.6 15.4 8.4 -16.0 -0.3
Client facing FTEs 7,270 2,835 3,262 640 367 167
DKK million
Q3 2022
Reported
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,348.1 713.8 404.6 132.1 71.5 26.0
Gross profit 477.0 346.1 78.3 35.3 11.7 5.6
Gross profit margin 35.4% 48.5% 19.4% 26.7% 16.4% 21.4%
Local admin costs -157.3 -86.4 -37.2 -14.1 -13.2 -6.4
Adjusted EBITDA before allocated cost from HQ 319.7 259.7 41.1 21.2 -1.5 -0.8
Adjusted EBITDA margin before allocated cost from HQ 23.7% 36.4% 10.2% 16.0% -2.1%
-3.0%
Allocated costs from HQ -10.9 -7.9 0.0 -1.7 -0.8 -0.4
Depreciation -33.4 -18.0 -9.5 -2.7 -1.8 -1.4
Amortisation -34.9 -20.1 -7.6 -4.2 -2.0 -1.0
Other operating income / expense -0.5 0.0 -0.5 0.0 0.0 0.0
EBIT 240.1 213.7 23.5 12.6 -6.1 -3.6
Client facing FTEs 6,576 2,712 2,898 526 310 129
Revenue, %
.%
.%
.%
Q3 2023
.%
.%
Revenue, %
.%
.%
.%
Q3 2022
.%
.%
NORWAY
DENMARK
UNITEDKINGDOM
NETHERLANDS
INTRASOFT
NORWAY
DENMARK
UNITEDKINGDOM
NETHERLANDS
INTRASOFT
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
7
38
Netcompany Denmark
In Q3, public revenue in the Danish busi-
ness unit was in line with the same quarter
last year, whereas the private segment
realised a decline of 12.6%, which led to
5.1% decline in total revenue in the Danish
business unit in the quarter. As in Q2, the
private segment in Denmark experienced
prolonged conversion time of pipeline due
to the critical nature of the solutions and
the continued macro economic uncertainty.
Gross profit margin was lower as utilisation
continued to be below normal levels.
Adjusted EBITDA margin was 26.6% com-
pared to 36.4% in Q3 2022. The lower ac-
tivity in the private segment was the main
reason for the lower margin.
Client facing FTEs decreased 1.2% com-
pared to Q2 2023, as the rightsizing of the
pyramid structure started to materialise in
the numbers.
Netcompany-Intrasoft
Revenue in Netcompany-Intrasoft grew
by 28.3% to DKK 519.1m in Q3 2023. The
growth in Q3 was driven by strong perfor-
mance in the public and EU area that grew
29.4% and supported by a strong growth in
the private segment that grew 25.3%.
Client facing FTEs grew 12.5% in the third
quarter of 2023.
During the third quarter Netcompany-Intra-
soft won additional new contracts within
the “RRF” programme in Greece.
Adjusted EBITDA margin was 8.4% in Q3
2023 compared to 10.2% in the same peri-
od last year. The decline in margin was a
result of a different revenue mix compared
to Q3 2022, where a larger proportion of
revenue included licenses. Adjusted for
this, margins would have been on level.
Netcompany UK
In the UK, revenue grew 22% compared
to the same period last year and thereby
continued its strong growth momentum
realised in the first half of 2023. The growth
was driven by the public segment, where
revenue grew by 25.6%. The private seg-
ment grew 12.6% compared to the same
quarter last year.
In the beginning of Q3, Netcompany UK
was selected as supplier for the Crown
Commercial Service’s Digital and Legacy
Application Services (DALAS), a framework
agreement for four years. The first con-
tracts within this framework are expected
to come into tender during Q4 2023.
The increased tender writing activities as-
sociated with DALAS led to lower utilisation
and thus lower gross profit margin.
Adjusted EBITDA margin was 10.7% in Q3
2023 compared to 16% in the same period
last year. The lower margin in Q3 this year
was in line with Q2 2023, as an increasing
amount of time was spent on tender writing
for the DALAS framework. The higher level
of tender writing activities related to DALAS
is expected to continue into Q4 2023 too.
Client facing FTEs grew by 21.6% and
reached 640 FTEs.
Netcompany Norway
Revenue growth in Norway was 7.3% in Q3
2023 compared to the same period last
year. The private segment grew 13% in Q3
compared to the same quarter last year
and the public segment grew 3.3%. As in
Denmark, Netcompany Norway also expe-
rienced prolonged decision taking time due
to the uncertainty in the macro economic
environment, which also impacted gross
profit margin negatively as utilisation re-
mained lower than anticipated.
Adjusted EBITDA margin was negative
14.3% compared to negative 2.1% in Q3
2022. The reason for the decline in margin
was lower utilisation, however, this is ex-
pected to improve during Q4.
Netcompany Netherlands
Revenue in the Dutch business unit grew
44.5% in Q3 2023. Growth was generated
in the public segment, where revenue grew
45.8%.
Adjusted EBITDA margin was 7.9% in Q3
2023 compared to negative 3% in Q3 2022.
The increase in margin was a result of bet-
ter project execution which is expected to
continue going forward.
Pipeline in Netherlands continue to look
promising, and the number of client facing
FTEs increased by 29.1% compared to the
same quarter last year.
BUSINESSSEGMENTSQ3
CONTINUED
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
8
38
Performance overview 9 months
YTD 2023 YTD 2023 % change % change
DKK million
(reported) (constant)* YTD 2022 (reported) (constant)* Total 2022
Revenue 4,495.8 4,541.5 4,025.3 11.7% 12.8% 5,544.6
Cost of services -3,250.5 -3,284.0 -2,772.9 17.2% 18.4% -3,772.2
Gross profit 1,245.3 1,257.5 1,252.5 -0.6% 0.4% 1,772.5
Gross profit margin 27.7 % 27.7 % 31.1% -3.4pp -3.4pp 32.0%
Sales and marketing costs -38.6 -38.0 -28.9 33.6% 31.3% -41.0
Administrative costs -690.7 -698.5 -565.1 22.2% 23.6% -763.9
Adjusted EBITA 516.0 521.0 658.5 -21.6% -20.9% 967.6
Adjusted EBITA margin 11.5% 11.5% 16.4% -4.9pp -4.9pp 17.5%
Other operating income / expense 0.6 0.6 -0.4 -244.2% -244.1% 5.9
EBITA 516.6 521.6 658.1 -21.5% -20.7% 973.5
EBITA margin 11.5% 11.5% 16.3% -4.9pp -4.9pp 17.6%
Amortisation -104.5 -104.5 -100.2 4.3% 4.3% -134.1
Operating profit (EBIT) 412.1 417.1 557.8 -26.1% -25.2% 839.4
Operating profit margin 9.2% 9.2% 13.9% -4.7pp -4.7pp 15.1%
Net financials -99.9 -100.1 -47.3 110.9% 111.5% -77.8
Income / loss, joint venture / associates -6.8 -6.8 -10.3 -34.0% -34.0% -5.1
Profit / loss before tax 305.4 310.1 500.2 -38.9% -38.0% 756.5
Tax -67.0 -67.2 -112.8 -40.7% -40.5% -153.8
Effective tax rate 21.9% 21.7% 22.6% -0.6pp -0.9pp 20.3%
Net profit / loss 238.5 243.0 387.3 -38.4% -37.3% 602.8
Additional KPIs
Adjusted EBITDA 657.1 663.6 757.3 -13.2% -12.4% 1,106.2
Adjusted EBITDA margin 14.6% 14.6% 18.8% -4.2pp -4.2pp 20.0%
Free cash flow 169.5 N/A 279.4 -39.3% N/A 602.7
Cash conversion rate 53.0% N/A 60.0% -7.0pp N /A 85.2%
*Constant currencies measured using average exchange rates for 2022
Reported revenue grew 11.7% (constant
12.8%) in the first nine months of 2023 to
DKK 4,495.8m, all organic. Revenue gener-
ated outside Denmark accounted for 52.4%
of the Group revenue. The public segment
grew revenue by 17%, while revenue in the
private segment grew by 2.1% compared
to the same period last year. Client facing
FTEs grew 13.5% and the average number
of FTEs amounted to 7,652.
Gross profit margin was 27.7%, which was
3.4 percentage points lower than the same
period in 2022. The decrease was mainly
caused by a lower margin in the Danish pri-
vate segment.
Adjusted EBITDA was DKK 657.1m in the
first nine months of 2023, a 13.2% decrease
compared to the same period the year be-
fore. The EBITDA margin was 14.6%, which
was 4.2 percentage points lower than the
same period in 2022. The decrease in EBIT-
DA margin was a consequence of the lower
gross profit margin and increased adminis-
trative costs mainly driven by the new Go-
To-Market approach.
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
9
38
Business Segments 9 months
DKK million
YTD 2023
Constant (2022 rate)
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 4,541.5 2,140.1 1,525.3 507.9 264.9 103.3
Gross profit 1,271.3 782.7 307.4 130.2 33.0 18.0
Gross profit margin 28.0% 36.6% 20.2% 25.6% 12.4% 17.5%
Local admin costs -569.8 -311.2 -132.9 -59.2 -46.2 -20.3
Adjusted EBITDA before allocated cost from HQ 701.5 471.5 174.5 71.0 -13.2 -2.2
Adjusted EBITDA margin before allocated cost from HQ
15.4% 22.0% 11.4% 14.0% -5.0% -2.2%
Allocated costs from HQ -38.5 -27.0 0.0 -6.5 -3.3 -1.7
Depreciation -142.1 -82.0 -40.4 -8.9 -6.2 -4.5
Amortisation -104.5 -52.0 -32.4 -11.4 -5.7 -3.0
Other operating income / expense 0.6 0.0 0.6 0.0 0.0 0.0
EBIT 417.1 310.5 102.3 44.2 -28.4 -11.5
Client facing FTEs 7,165 2,854 3,190 607 353 161
DKK million
YTD 2022
Reported
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 4,025.3 2,117.8 1,222.2 407.7 205.5 72.1
Gross profit 1,270.3 890.2 234.8 114.2 21.6 9.6
Gross profit margin 31.6% 42.0% 19.2% 28.0% 10.5% 13.3%
Local admin costs -475.0 -261.4 -107.5 -46.2 -39.4 -20.5
Adjusted EBITDA before allocated cost from HQ 795.3 628.8 127.4 68.0 -17.8 -11.0
Adjusted EBITDA margin before allocated cost from HQ 19.8% 29.7% 10.4% 16.7% -8.7%
-15.2%
Allocated costs from HQ -38.0 -27.5 0.0 -5.9 -3.1 -1.5
Depreciation -98.8 -52.7 -28.7 -7.9 -5.5 -4.0
Amortisation -100.2 -58.5 -19.9 -12.4 -6.5 -3.0
Other operating income / expense -0.4 0.0 -0.4 0.0 0.0 0.0
EBIT 557.8 490.0 78.4 41.8 -32.9 -19.4
Client facing FTEs 6,314 2,598 2,800 497 284 135
Revenue, %
.%
.%
.%
YTD 2023
.%
.%
Revenue, %
.%
.%
.%
YTD 2022
.%
.%
NORWAY
DENMARK
UNITEDKINGDOM
NETHERLANDS
INTRASOFT
NORWAY
DENMARK
UNITEDKINGDOM
NETHERLANDS
INTRASOFT
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
10
38
Netcompany Denmark
Revenue growth in the Danish business
unit was 1.1% driven by growth in the public
segment of 7.4%, whereas the private seg-
ment realised a decline of 7.7% in the first
nine months of 2023. The private segment
in Denmark experienced a negative impact
from the slowdown in pipeline conversion
in the first nine months of 2023, which is
expected to continue throughout the year.
Adjusted EBITDA margin was 22% com-
pared to 29.7% in the first nine months of
2022. The lower margin was an effect of
higher level of forced churn, lower utilisa-
tion in the private segment, costs related to
movement into the new corporate HQ
in Denmark and costs related to the en-
hanced “Go-To-Market” strategy.
Depreciation increased by DKK 29.3m to
DKK 82m in the first nine months of 2023,
due to increased depreciation related to
leases of which some was due to the termi-
nation of the previous HQ at Grønningen in
Copenhagen.
Netcompany-Intrasoft
Revenue in Netcompany-Intrasoft grew
by 24.8% to DKK 1,525.3m in the first nine
months of 2023 – all organic. The growth
was driven by strong performance in both
the public and EU area that grew 25.5% and
in the private segment that grew 22.8%.
Client facing FTEs grew 14% in the first nine
months of 2023.
Adjusted EBITDA margin was 11.4% in the
first nine months of 2023 compared to
10.4% in the same period last year. The
margin in Netcompany-Intrasoft will ex-
perience lumpiness quarter over quarter,
as software licenses are recognised im-
mediately with a direct impact on margin,
thereby solely depending on timing of the
contracts being signed.
Netcompany UK
Revenue in Netcompany UK grew by 24.6%
in the first nine months of 2023 to DKK
507.9m. The continued strong revenue
growth in UK was driven by the growth in
the public sector in UK that grew 34.3% in
the first nine months of 2023 compared
to the same period last year. Client facing
FTEs grew 22.1% in the first nine months of
2023.
Adjusted EBITDA margin was 14% in the
first nine months of 2023, which was 2.7
percentage points lower than in the same
period the year before. The reason for the
decline in margin, was due to increased
focus on preparation of tender material and
business development activities related to
projects like the DALAS framework.
Netcompany Norway
Revenue growth in Netcompany Norway
was 28.9% in the first nine months of 2023
compared to the same period last year.
The growth in revenue was driven by an
increase in the private segment, that grew
48.5% in the first nine months of 2023
slightly offset by a 15.9% revenue increase
in the public segment. Client facing FTEs
grew 24.4% in the first nine months of
2023.
Adjusted EBITDA margin was negative 5%
compared to negative 8.7% for the first nine
months of 2022. Norway is expected to
become profitable within 2024 as a result
of better project execution and higher uti-
lisation.
Netcompany Netherlands
Revenue in the Dutch business unit grew
43.3% in the first nine months of 2023. The
continued strong revenue growth in the
Dutch business unit was solely driven by
the public sector. Client facing FTEs grew
18.9% in the first nine months of 2023.
Adjusted EBITDA was negative 2.2% com-
pared to negative 15.2% in the first nine
months of 2022. There are clear indica-
tions, that margins in the Dutch business
unit will continue to improve throughout
2023 and in 2024.
BUSINESSSEGMENTS9MONTHS
CONTINUED
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
11
38
Netcompany measures revenue visibility
on a 12 month rolling basis, based on two
main input parameters, which are defined
as total value of committed engagements
(which is comprised of fixed price en-
gagements and service agreements), and
ongoing time and material engagements
with a high likelihood of conversion and/or
prolongation, defined as non-contractual
committed engagements.
By the beginning of October 2023, reve-
nue visibility for 2023 amounted to DKK
5,867.9m. Of this, contractual committed
revenue amounted to DKK 1,291.2m and
non-contractual committed engagements
amounted to DKK 80.9m, while realised
revenue in the first nine months of 2023
amounted to DKK 4,495.8m.
Compared to Q3 2022, revenue visibility im-
proved 10.8% from DKK 5,296.2m for 2022
to DKK 5,867.9m for 2023.
Revenue visibility in the public segment
amounted to DKK 3,991.4m, of which con-
tractual committed revenue amounted
to DKK 912m and non-contractual com-
mitted engagements amounted to DKK
months of 2023 and DKK 6,246.5m is ex-
pected to be released in the period from
2024 and 2030.
Revenue visibility
41.9m, while realised revenue in the first
nine months of 2023 amounted to DKK
3,037.6m.
Revenue visibility in the private segment
amounted to DKK 1,876.4m, of which con-
tractual committed revenue amounted to
DKK 379.2m and non-contractual com-
mitted engagements amounted to DKK
39m, while realised revenue in the first nine
months of 2023 amounted to 1,458.2m.
By the beginning of October 2023, the total
order backlog for Netcompany-Intrasoft
amounted DKK 6,721.4m mainly within
EU institutions. Of the total order backlog
for Netcompany-Intrasoft DKK 474.9m is
expected to be released in the last three
DKK million
.
,.
.%
,.
.
.
.
.
.%
.
.%
.%
.%
.%
.%
.%
.%
,.
,.
,.
Revenue
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Total
Public segment Private segment Total segment
,.
Non con-
tractual
committed
.
-
.%
.%
.
.%
.
Revenue
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Total
Non con-
tractual
committed
Revenue
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Total
Non con-
tractual
committed
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
12
38
Employees
Netcompany employed an average of 7,760
FTEs in Q3 2023, which was an increase
of 721 FTEs or 10.2% compared to Q3 2022
(7,039 FTEs). On a sequential basis FTEs
increased by 0.8% from Q2 2023 to Q3
2023.
The number of client facing employees for
the Group increased by 694 from 6,576 in
Q3 2022 to 7,270 in Q3 2023, while the level
of non-client facing employees was 6.3% in
Q3 2023 compared to 6.6% in Q3 2022.
The attrition rate for the last twelve months
was 16.2%, which was a decrease of 8
percentage points compared to the same
period last year.
3 months rolling churn rates have increased
in all entities apart from in Greece and Lux-
embourg. This was a result of a higher pro-
portion of forced churn realised.
Avg. FTEs increased to 7,760 during Q3 2023
YTD
Attrition rate
.%
.%
.%
.%
.%
.%
.%
DK NO UK NL
.%
GR LUBE
.%
.%
.%
.%
LTMSEPTEMBER2022
LTMSEPTEMBER2023
3MONTHSROLLING
CHURNSEPTOCT2023
%
%
%
%
%
%
%
%
%
%
%
.%
.%
.%
.%
.%
.%
.%
.%
.%
YTD
,
, ,
,
,
Q
,
,
NONCLIENTFACING
FREELANCERS
UNITEDKINGDOM POLAND
DENMARK
UKCONTRACTORS
VIETNAM
NETHERLANDS
NORWAY
INTRASOFT
,
,, ,
,
Q
,
,
,
,
,
,
,
,
,
,
,
,
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
13
38
Free cash flow and cash conversion rate
1
The Group generated a free cash flow of
DKK 100.4m in Q3 2023, compared to DKK
221.5m in Q3 2022. The decrease was
driven by a decrease in operating profit
before depreciation and amortisation of
DKK 101.5m and negative development in
working capital changes in Q3 2023 of DKK
26m compared to Q3 2022. Compared to
the same period last year, the development
in working capital changes was caused by
a decrease in trade payables, and addition-
al tying up of work in progress caused by
the increase of projects in Greece under
the RRF.
Normalised for taxes paid on account
1
, the
Group generated a free cash flow of DKK
79.4m in Q3 2023 compared to DKK 174.9m
in Q3 2022.
Cash conversion rate decreased from
112.5% in Q3 2022 to 93% in Q3 2023.
Adjusted for taxes paid on account, cash
conversion rate decreased from 88.8% in
Q3 2022 to 73.6% in Q3 2023.
For the first nine months, Netcompany gen-
erated a free cash flow of DKK 169.5m cor-
responding to a decrease of 39.3% com-
pared to the same period last year, mainly
driven by the development in operating
profit before depreciation and amortisation,
increase in interest expenses and acquisi-
tion of fixed assets due to investments in
connection with the new HQs in Denmark
and Greece.
Cash conversion ratio decreased by 7
percentage points in the first nine month of
2023 to 53% compared to 60% in the first
nine month of 2022.
Trade receivables
At the end of Q3 2023, trade receivables
were on level with Q3 2022. Compared to
Q3 2022, trade receivables increased by
2% from DKK 1,057.9m to DKK 1,079.1m by
the end of Q3 2023. In the same period
revenue increased by 8.4%.
The lower increase in trade receivables
compared to revenue was a result of
continued faster collection of receivables
as well as one RRF-project being collected
during the quarter. As a result, days sales
outstanding improved from 72 days in Q3
2022 to 67 days in Q3 2023.
The relative split of overdue trade receiv-
ables increased by 3.1 percentage points
from 34.3% by the end of Q3 2022 to 37.4%
by the end of Q3 2023 solely caused by
trade receivables overdue by 0-30 days.
The overdue part of trade receivables
overdue by more than 30 days decreased
by 24.9% from DKK 209.2 to DKK 157.1
compared to the same period last year.
This was also impacted by one RRF-project
being collected during Q3 2023.
Trade receivables paid in the following
month amounted to DKK 553.8m in Oc-
Capital and other 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 bet-
ter 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, 30
September 2023
689.1 254.6 46.6 13.5 97.0 -21.8 1,079.1
Paid in the following month 314.9 204.6 23.3 6.6 4.4 0.0 553.8
% paid subsequently 45.7% 80.4% 49.9% 49.2% 4.5% 0.0% 51.3%
Trade receivables, 30
September 2022
707.5 159.6 57.4 39.0 112.8 -18.3 1,057.9
Paid in the following month 352.5 109.1 26.7 9.7 9.7 0.0 507.8
% paid subsequently 49.8% 68.4% 46.6% 24.9% 8.6% 0.0% 48.0%
DKK million
Not
overdue
0-30
days
30-60
days
60- 90
days
>90
days
Provi-
sion
Total
tober, of which DKK 238.9m was overdue
end of September, equal to a repayment
of 51.3% of the total balance compared to
48% last year.
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
14
38
CASHFLOWANDOTHERSIGNIFICANT
FINANCIALPOSITIONS
CONTINUED
Work in progress
At 30 September 2023, Netcompany’s work
in progress amounted to DKK 1,021.1m, rep-
resented by contract work in progress of
DKK 1,509.2m and prepayments received
from customers of DKK 488.2m.
Work in progress increased by 21.2% from
DKK 842.7m in Q3 2022 to DKK 1,021.1m in
Q3 2023. In the same period revenue in-
creased 8.4%, whereas revenue in the pre-
vailing 12 months (LTM) increased by 16.2%.
As a total, trade receivables and work in
progress increased by 10.5% from DKK
1,900.6m end of Q3 2022 to DKK 2,100.1m
end of Q3 2023, compared to an increase
in revenue by 16.2% in the same period.
In that aspect growth in work in progress
and trade receivables versus revenue
growth were more balanced.
Investments
In September 2023, Netcompany ac-
quired 20% of Festina Finance A/S and
paid DKK 106.5m. Due to timing, closing
balance and thereby initial accounting
for the acquisition was incomplete at the
end of reporting Q3 2023.
Funding and liquidity
Originally, the maturity of the Group bank
loan expired in 2025. In April 2023, the
loan was prolonged by one year and now
runs to 2026. The loan can be prolonged
further by one year.
The combined committed facilities con-
stitute DKK 2,863.7m and an additional
facility of DKK 2,000m, available only
for new acquisitions. At 30 September
2023, DKK 1,643.7m of the committed
lines were utilised on ordinary borrowings
and DKK 106.5m utilised for acquisitions,
leaving a total of DKK 3,113.5m available
in unutilised funding of which DKK 1,220m
can be utilised for normal operations if
needed with no additional costs or cove-
nants. In addition, Netcompany-Intrasoft
had utilised DKK 467.2m on local guar-
antees, having no impact on the Group
facilities except for leverage.
Including net cash balance as of 30
September 2023 of DKK 100.5m available
Group funding was DKK 1,320.5m.
Risk management
Please refer to the overview of risk factors
provided by the Group in the Annual Report
for 2022.
Capital structure
In Q3 2023, debt leverage to 12 months roll-
ing adjusted EBITDA was 1.6x compared
to 1.8x in Q3 2022. All covenants are com-
plied with.
Events after the balance sheet date
To this date, no events have occurred after
the balance sheet date, which would influ-
ence the evaluation of this report.
+.%
+.%
+.%
,.
,.
Work in progress overview (DK million)
,
,
Sept.
Q
Q
LTM
,.
WIP
REVENUE
.
Sept.
,.
Q
Q
LTM
,.
,
,
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
15
38
Q3 Original
Actual
Guidance Target
performance
Financial metrics in constant currencies
2023 2023
2022
Group revenue growth, organic 8-10% 8-12% 14.9%
Group adjusted EBITDA margin
lower end of
15-18%
15-18% 20.0%
Despite negative macro environment im-
pacts in particularly the Danish private
segment, Netcompany has realised a sat-
isfactory performance year to date in 2023
with revenue growth of 12.8% and adjusted
EBITDA margin of 14.6% - both measured in
constant currencies.
The prolonged decision taking related to
pipeline cases
in the Danish private segment
has continued into Q3 and are expected to
impact full year result negatively, which in
combination with realised performance year
to date has led to narrowed expected reve-
nue growth of 8-10%. Margin is expected to
be realised in the lower end of the guidance
range.
A number of risks to our guidance was given
in connection with our Annual Report for
2022. Those risks still exist and could im-
pact our performance for the remaining part
of 2023.
Netcompany presented mid-term targets on
1 June to be achieved by the end of 2026.
These targets are as follows:
■ Revenue of at least DKK 8.5bn
■ Adjusted EBITDA margin of at least 20%
■ Cash redistribution to shareholders of at
least DKK 2bn.
Guidance 2023
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
16
38
Financial Calendar
17 January 2024
Deadline for shareholders to submit
proposals for the agenda of the Annual
General Meeting 2024.
25 January 2024
Annual Report for the financial year 2023.
29 February 2024
Annual General Meeting 2024.
3 May 2024
Interim report for the first 3 months of
2024.
14 August 2024
Interim report for the first 6 months of
2024.
31 October 2024
Interim report for the first 9 months 2024.
Capital
Netcompany’s share capital is DKK 50m di-
vided into 50m shares. Netcompany holds
432,700 treasury shares equivalent to 0.9%
of the share capital. The shares will be
used to honour the Group’s commitments
under its Long-Term Incentive programmes.
Share-based incentive schemes/restrict-
ed stock units
In total, 392,947 RSUs in relation to the
share-based incentive schemes were
issued at 30 September 2023 of which
101,269 were granted to Executive Manage-
ment and 291,678 were granted to Other
Key Management Personnel and Other
Employees.
The fair value of the RSUs at grant was DKK
136.1m. The cost related hereto is expensed
over the vesting period. A total amount of
DKK 12.1m was recognised as personnel
costs in the income statement in Q3 2023.
Additional information on the holdings of
Netcompany shares and restricted stock
units by members of the Board of Directors
and Executive Management Board is dis-
closed in the Remuneration Report.
Acquisition of Netcompany shares related
to the acquisition of Intrasoft International
S.A.
As part of the acquisition of Intrasoft In-
ternational S.A, an agreement was made
for a senior executive to convert the re-
ceived cash element of the purchase price
into Netcompany shares entailing certain
possibilities to sell shares in predefined
tranches at the prevailing share price of the
time of the transaction.
The last option was exercised in relation to
this tranche and executed on 3 July 2023.
Netcompany has in that capacity acquired
44,539 treasury shares directly from the
senior executive.
Compliance Review
The Danish Business Authorities have com-
pleted their compliance review of Netcom-
pany Group A/S’ Annual Reports for 2020
and 2021 as disclosed in the Annual Report
for 2022.
Due to the outcome of the compliance
review the accounting policies for business
combinations has been adjusted resulting
in a reduction of goodwill of DKK 120.4m,
a reduction of earn-out obligation of DKK
118.4m and a net impact on the equity
of DKK 2.1m including the impact from
remuneration to be treated as share-based
payment.
The impact is not considered material for
previous periods of financial reporting and
has been updated with effect from 1 Jan-
uary 2023 with no changes to comparison
figures.
Shareholder information
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
17
38
Today, the Board of Directors and Executive
Management considered and approved 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 2023 to 30 September 2023. The
Q3 2023 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 addi-
tional Danish regulations for the presenta-
tion of interim reports by listed companies.
Furthermore, the interim report has been
prepared in accordance with the account-
ing policies set out in the Group’s Annual
Report for 2022.
In our opinion, the accounting policies used
are appropriate, and the overall presenta-
tion of the interim consolidated financial
statements gives a true and fair view of the
Group’s assets, liabilities and financial po-
sition as at 30 September 2023 and of the
results of the Group’s operations and cash
flows for the period 1 January 2023 to 30
September 2023.
We further consider that the Management’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 require-
ments for listed companies.
COPENHAGEN,2NOVEMBER2023
Statement of the Board of Directors
and Executive Management
Executive Management
André Rogaczewski
CEO
Bo Rygaard
Chairman of the Board
Claus Bo Jørgensen
COO
Juha Christensen
Vice Chairman of the Board
Bart Walterus
Thomas Johansen
CFO
Board of Directors
Åsa Riisberg
Susan Helen Cooklin
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
18
38
Consolidated interim
financial statements
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
19
38
Income statement and Statement
of comprehensive income
DKK million Note Q3 2023 Q3 2022 YTD 2023 YTD 2022 Total 2022
Income statement
Revenue 1 1,461.7 1,348.1 4,495.8 4,025.3 5,544.6
Cost of services 2 -1,059.3 -877.0 -3,250.5 -2,772.9 -3,772.2
Gross profit 402.4 471.1 1,245.3 1,252.5 1,772.5
Sales and marketing costs -13.0 -10.6 -38.6 -28.9 -41.0
Administrative costs 3 -215.1 -185.1 -690.7 -565.1 -763.9
Other operating income / expense -0.0 -0.5 0.6 -0.4 5.9
EBITA 174.3 275.0 516.6 658.1 973.5
Amortisation -35.8 -34.9 -104.5 -100.2 -134.1
Operating profit (EBIT) 138.5 240.1 412.1 557.8 839.4
Financial income 4 10.0 10.4 18.9 18.8 30.3
Financial expenses 4 -45.6 -26.6 -118.7 -66.2 -108.1
Income / loss, joint venture / associates -2.3 -2.5 -6.8 -10.3 -5.1
Profit / loss before tax 100.6 221.4 305.4 500.2 756.5
Tax on the profit for the period -20.7 -51.7 -67.0 -112.8 -153.8
Net profit / loss for the period 80.0 169.7 238.5 387.3 602.8
Of which
Non-controlling interest 0.2 -0.1 0.2 -0.5 -0.6
Netcompany Group A/S' share
Earnings per share
Earnings per share (DKK) 5 1.61 3.45 4.81 7.88 12.26
Diluted Earnings per share (DKK) 5 1.60 3.42 4.79 7.80 12.15
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
20
38
Statement of comprehensive income
Net profit / loss for the period 80.0 169.7 238.5 387.3 602.8
Other comprehensive income items that may be reclassified subse-
quently to profit or loss:
Exchange rate adjustments on translating foreign subsidiaries -1.3 -2.4 3.4 -4.3 -8.0
Other comprehensive income items that may not be reclassified to
profit or loss:
Actuarial profit / loss on defined benefit plans 0.0 0.0 0.0 -0.0 0.4
Other comprehensive income, net of tax -1.3 -2.4 3.4 -4.3 -7.6
Of which
Non-controlling interest 0.1 0.4 0.1 0.7 0.2
Netcompany Group A/S' share -1.4 -2.7 3.4 -5.0 -7.8
Total comprehensive income / loss 78.7 167.3 241.9 383.0 595.1
Of which
Non-controlling interest 0.3 0.3 0.2 0.3 -0.4
Netcompany Group A/S' share 78.4 167.0 241.7 382.7 595.6
DKK million
Note Q3 2023 Q3 2022 YTD 2023 YTD 2022 Total 2022
INCOMESTATEMENTANDSTATEMENT
OFCOMPREHENSIVEINCOME
CONTINUED
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
21
38
Statement of financial position
30 September 30 September 31 December
DKK million
Note 2023 2022 2022
Assets
Intangible assets 3,739.7 3,869.9 3,879.9
Tangible assets 912.6 295.5 332.2
Investment in joint venture 91.7 92.8 97.4
Investment in associates 113.2 7.3 8.0
Other securities and invest-
ments
Other receivables 52.7 48.8 54.9
Deferred tax assets 41.7 29.3 32.7
Total non-current assets 4,952.7 4,344.9 4,406.4
Trade receivables 6 1,079.1 1,057.9 1,112.0
Receivables from joint venture 6.9 15.2 10.0
Receivables from associates 16.4 16.4 16.4
Contract work in progress 7 1,509.2 1,222.8 1,114.5
Other receivables 84.4 37.7 38.3
Prepayments 109.8 94.9 124.4
Tax receivables 20.7 0.0 36.0
Total receivables 2,826.5 2,444.9 2,451.5
Cash 100.5 223.6 336.0
Total current assets 2,927.0 2,668.5 2,787.5
Total assets 7,879.8 7,013.4 7,193.9
30 September 30 September 31 December
DKK million
Note 2023 2022 2022
Equity and liabilities
Share capital 50.0 50.0 50.0
Treasury shares -195.5 -302.9 -313.3
Retained earnings 3,891.5 3,591.1 3,783.6
Other reserves
Equity attributable to Group 3,746.5 3,338.2 3,520.7
Non-controlling interest 6.4 6.8 6.2
Total equity 3,752.9 3,345.1 3,526.9
Borrowings 1,574.6 1,974.6 1,872.4
Lease liabilities 760.9 150.3 180.5
Pension obligations 15.8 18.0 13.8
Other payables 0.0 1.0 0.0
Deferred tax liability 100.7 120.1 111.0
Total non-current liabilities 2,452.0 2,264.0 2,177.6
Borrowings 170.1 49.9 47.3
Lease liabilities 80.5 89.9 85.4
Pension obligations 5.8 1.7 5.8
Prebilled invoices 7 488.2 380.2 433.5
Trade payables 298.2 209.2 265.2
Other payables 8 629.7 656.2 640.6
Provisions 2.4 10.3 11.6
Income tax payable 0.0 7.0 0.0
Total current liabilities 1,674.9 1,404.3 1,489.4
Total liabilities 4,126.9 3,668.3 3,667.0
Total equity and liabilities 7,879.8 7,013.4 7,193.9
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
22
38
Cash Flow statement
DKK million
Q3 2023 Q3 2022 YTD 2023 YTD 2022 Total 2022
Operating profit (EBIT) 138.5 240.1 412.1 557.8 839.4
Depreciation and amortisation 81.4 68.3 245.6 199.0 272.7
Non-cash items 13.2 5.0 34.4 8.6 14.4
Working capital changes -58.2 -32.2 -219.2 -225.2 -59.3
Total 174.9 281.2 472.8 540.2 1,067.1
Income taxes paid -9.1 -5.1 -70.0 -137.6 -234.1
Financial income received 2.7 1.7 5.3 5.5 7.3
Financial expenses paid -31.9 -11.4 -81.0 -33.1 -67.3
Cash flow from operating activities 136.6 266.5 327.2 375.0 773.0
Net cash outflow on acquisition of subsidiaries 0.0 0.0 0.0 0.0 -50.0
Other investments -106.1 0.2 -105.8 4.2 4.4
Capitalisation of intangible assets -26.2 -37.4 -84.8 -74.2 -98.0
Acquisition of intangible assets 0.0 0.0 0.0 0.0 -20.0
Acquisition of fixed assets -10.0 -7.6 -72.9 -21.4 -52.2
Disposals of fixed assets 0.0 0.0 0.0 0.0 0.5
Other receivables (deposits) 4.3 -18.8 4.5 -22.7 -28.9
Cash flow from investment activities -137.9 -63.5 -259.0 -114.1 -244.3
Payment of treasury shares -31.7 0.0 -31.7 -101.0 -131.5
Proceeds from borrowings 127.0 0.0 127.5 2,182.8 2,182.8
Repayment of borrowings 0.5 -201.7 -304.9 -2,504.6 -2,610.0
Repayment of right of use assets -31.2 -25.2 -94.1 -67.3 -87.3
Cash flow from financing activities 64.6 -227.0 -303.2 -490.0 -646.0
Net increase in cash and cash equivalents 63.3 -24.0 -235.0 -229.1 -117.3
Cash and cash equivalents at the beginning 36.7 250.6 336.0 458.8 458.8
Effect of exchange rate changes on the balance cash held in foreign currencies 0.5 -2.9 -0.5 -6.1 -5.4
Cash and cash equivalents at the end 100.5 223.6 100.5 223.6 336.0
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
23
38
Statement of changes in Equity
Foreign
currency Total equity, Non-
Share Treasury Share-based translation Other Retained Netcompany controlling
DKK million
capital shares remuneration subsidiaries Reserves earnings Group A/S interest Total equity
Equity at 1 July 2023 50.0 -183.6 49.8 3.2 0.4 3,767.8 3,687.5 6.1 3,693.6
Profit for the period 0.0 0.0 0.0 0.0 0.0 79.8 79.8 0.2 80.0
Other comprehensive income 0.0 0.0 0.0 -1.4 0.0 0.0 -1.4 0.1 -1.3
Total comprehensive income 0.0 0.0 0.0 -1.4 0.0 79.8 78.4 0.3 78.7
Treasury Shares for the period 0.0 -12.8 0.0 0.0 0.0 -18.8 -31.5 0.0 -31.5
Share-based remuneration for the period 0.0 0.9 11.5 0.0 0.0 -0.3 12.1 0.0 12.1
Total transactions with owners 0.0 -11.9 11.5 0.0 0.0 -19.0 -19.4 0.0 -19.4
Equity at 30 September 2023 50.0 -195.5 61.2 1.7 0.4 3,828.5 3,746.5 6.4 3,752.9
Equity at 1 January 2023 50.0 -313.3 54.2 -1.6 0.4 3,731.0 3,520.7 6.2 3,526.9
Adjustment related to previous year* 0.0 0.0 118.4 0.0 0.0 -120.4 -2.1 0.0 -2.1
Adjusted Equity at 1 January 2023 50.0 -313.3 172.6 -1.6 0.4 3,610.5 3,518.6 6.2 3,524.8
Profit for the period 0.0 0.0 0.0 0.0 0.0 238.3 238.3 0.2 238.5
Other comprehensive income 0.0 0.0 0.0 3.4 0.0 0.0 3.4 0.1 3.4
Total comprehensive income 0.0 0.0 0.0 3.4 0.0 238.3 241.7 0.2 241.9
Treasury Shares for the period 0.0 -12.8 0.0 0.0 0.0 -18.8 -31.5 0.0 -31.5
Share-based remuneration for the period 0.0 130.6 -111.4 0.0 0.0 -1.5 17.7 0.0 17.7
Total transactions with owners 0.0 117.8 -111.4 0.0 0.0 -20.3 -13.8 0.0 -13.8
Equity at 30 September 2023 50.0 -195.5 61.2 1.7 0.4 3,828.5 3,746.5 6.4 3,752.9
Equity at 1 July 2022 50.0 -302.9 46.4 4.3 -0.0 3,365.4 3,163.2 6.6 3,169.7
Profit for the period 0.0 0.0 0.0 0.0 0.0 169.7 169.7 -0.1 169.7
Other comprehensive income 0.0 0.0 0.0 -2.7 0.0 0.0 -2.7 0.4 -2.4
Total comprehensive income 0.0 0.0 0.0 -2.7 0.0 169.7 167.0 0.3 167.3
Treasury Shares for the period 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.0 0.1
Share-based remuneration for the period 0.0 0.0 7.9 0.0 0.0 0.0 7.9 0.0 7.9
Total transactions with owners 0.0 0.0 7.9 0.0 0.0 0.1 8.0 0.0 8.0
Equity at 30 September 2022 50.0 -302.9 54.3 1.6 -0.0 3,535.2 3,338.2 6.8 3,345.1
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
24
38
Foreign
currency Total equity, Non-
Share Treasury Share-based translation Other Retained Netcompany controlling
DKK million
capital shares remuneration subsidiaries Reserves earnings Group A/S interest Total equity
STATEMENTOFCHANGESINEQUITY
Equity at 1 January 2022 50.0 -241.4 70.2 6.6 0.0 3,145.8 3,031.1 6.8 3,037.9
Total comprehensive income 0.0 0.0 0.0 -8.2 0.4 603.4 595.6 -0.4 595.1
Total transactions with owners 0.0 -71.9 -16.0 0.0 0.0 -18.2 -106.0 -0.2 -106.2
Equity at 31 December 2022 50.0 -313.3 54.2 -1.6 0.4 3,731.0 3,520.7 6.2 3,526.9
*The adjustment in 2023 relates to change of accounting policies for business combinations following a compliance review of the Annual
Reports for 2020 and 2021. Reference is made to note 11 regarding accounting policies and description in the 2022 Annual Report.
Equity at 1 January 2022 50.0 -241.4 70.2 6.6 0.0 3,145.8 3,031.1 6.8 3,037.9
Profit for the period 0.0 0.0 0.0 0.0 0.0 387.8 387.8 -0.5 387.3
Other comprehensive income 0.0 0.0 0.0 -5.0 -0.0 0.0 -5.0 0.7 -4.3
Total comprehensive income 0.0 0.0 0.0 -5.0 -0.0 387.8 382.7 0.3 383.0
Treasury Shares for the period 0.0 -100.8 0.0 0.0 0.0 0.3 -100.5 0.0 -100.5
Share-based remuneration for the period 0.0 39.3 -15.8 0.0 0.0 1.3 24.8 0.0 24.8
Movement of non-controlling interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.2 -0.2
Total transactions with owners 0.0 -61.5 -15.8 0.0 0.0 1.7 -75.7 -0.2 -75.9
Equity at 30 September 2022 50.0 -302.9 54.3 1.6 -0.0 3,535.2 3,338.2 6.8 3,345.1
CONTINUED
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
25
38
Segment information
Public Q3
Group Denmark Intrasoft UK Norway Netherlands
DKK million
Q3 2023 Q3 2022 % change Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022
Revenue 1,003.9 885.4 13.4% 425.2 425.5 384.0 297.4 119.2 95.0 38.1 41.8 37.5 25.7
Cost of service -734.7 -607.3 21.0% -260.8 -240.5 -321.4 -240.6 -92.4 -70.7 -32.2 -35.4 -27.9 -20.1
Gross profit 269.2 278.0 -3.2% 164.4 185.0 62.6 56.9 26.8 24.3 5.9 6.4 9.6 5.5
Gross profit margin 26.8% 31.4% -4.6pp 38.7% 43.5% 16.3% 19.1% 22.5% 25.6% 15.4% 15.2% 25.5% 21.5%
Allocated costs -145.3 -124.7 16.5% -70.7 -60.3 -44.1 -34.9 -14.9 -12.4 -7.5 -9.4 -8.1 -7.6
Adjusted EBITA before HQ costs 124.0 153.4 -19.2% 93.7 124.7 18.5 21.9 11.9 11.9 -1.6 -3.1 1.4 -2.1
Adjusted EBITA margin before
allocated cost from HQ
12.3% 17.3% -5.0pp 22.0% 29.3% 4.8% 7. 4 % 10.0% 12.5% -4.2% -7.4% 3.8% -8.2%
Allocated costs from HQ -7.9 -7.0 13.0% -5.3 -4.8 0.0 0.0 -1.6 -1.3 -0.5 -0.5 -0.6 -0.4
EBITA 116.0 146.3 -20.7% 88.5 119.9 18.5 21.9 10.4 10.6 -2.1 -3.6 0.8 -2.5
EBITA margin 11.6% 16.5% -5.0pp 20.8% 28.2% 4.8% 7. 4 % 8.7% 11.2% -5.6% -8.6% 2.2% -9.8%
Amortisation -23.8 -22.4 6.1% -9.7 -11.6 -9.2 -5.5 -2.9 -3.1 -1.0 -1.3 -1 .1 -1.0
Operating profit 92.2 123.9 -25.6% 78.8 108.3 9.3 16.4 7.5 7.6 -3.1 -4.9 -0.3 -3.5
Operating profit margin 9.2% 14.0% -4.8pp 18.5% 25.5% 2.4% 5.5% 6.3% 8.0% -8.1% -11.6% -0.8% -13.7%
NOTE1
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
26
38
Segment information
Private Q3
CONTINUED
Group Denmark Intrasoft UK Norway Netherlands
DKK million
Q3 2023 Q3 2022 % change Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022
Revenue 457.8 462.8 -1.1% 252.1 288.3 134.1 107.2 41.7 37.2 29.7 29.7 0.2 0.4
Cost of service -324.6 -269.7 20.4% -148.2 -132.9 -109.1 -85.9 -33.3 -26.1 -33.9 -24.4 -0.2 -0.3
Gross profit 133.2 193.1 -31.0% 103.9 155.3 24.9 21.3 8.5 11.0 -4.1 5.4 0.0 0.1
Gross profit margin 29.1% 41.7% -12.6pp 41.2% 53.9% 18.6% 19.9% 20.3% 29.7% -13.9% 18.1% 18.8% 15.5%
Allocated costs -70.7 -60.1 17.5% -41.3 -38.4 -16.3 -11.6 -5.7 -4.4 -7.4 -5.6 -0.0 -0.1
Adjusted EBITA before HQ costs 62.5 133.0 -53.0% 62.6 116.9 8.6 9.7 2.8 6.6 -11.5 -0.2 0.0 -0.0
Adjusted EBITA margin before
allocated cost from HQ
13.7% 28.7% -15.1pp 24.8% 40.6% 6.4% 9.0% 6.6% 17.8% -38.7% -0.8% 5.5% -6.5%
Allocated costs from HQ -4.2 -3.8 9.6% -3.1 -3.1 0.0 0.0 -0.6 -0.5 -0.5 -0.3 -0.0 -0.0
Other operating income / expense -0.0 -0.5 -99.8% 0.0 0.0 -0.0 -0.5 0.0 0.0 0.0 0.0 0.0 0.0
EBITA 58.3 128.6 -54.7% 59.5 113.9 8.6 9.2 2.2 6.1 -12.0 -0.5 0.0 -0.0
EBITA margin 12.7% 27.8 % -15.1pp 23.6% 39.5% 6.4% 8.6% 5.2% 16.5% -40.5% -1.8% 4.5% -7.7%
Amortisation -12.0 -12.5 -3.8% -7.4 -8.5 -2.6 -2.1 -1.1 -1.1 -1.0 -0.7 -0.0 -0.0
Operating profit 46.3 116.2 -60.1% 52.2 105.3 6.0 7.1 1.1 5.0 -13.0 -1.3 0.0 -0.0
Operating profit margin 10.1% 25.1% -15.0pp 20.7% 36.5% 4.5% 6.6% 2.6% 13.6% -43.7% -4.3% 2.7% -10.6%
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
27
38
Segment information
Public 9 months
Group
Denmark Intrasoft UK Norway Netherlands
DKK million
YTD 2023 YTD 2022 % change YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022
Revenue 3,037.6 2,596.8 17.0% 1,314.3 1,223.2 1,125.8 897.9 368.2 281.5 126.4 123.4 102.8 70.8
Cost of service -2,235.6 -1,881.7 18.8% -870.7 -773.8 -900.3 -727.2 -277.6 -208.9 -102.2 -110.4 -84.9 -61.3
Gross profit 801.9 715.1 12.1% 443.6 449.5 225.6 170.7 90.6 72.6 24.3 13.0 18.0 9.4
Gross profit margin 26.4% 27.5% -1.1pp 33.8% 36.7% 20.0% 19.0% 24.6% 25.8% 19.2% 10.5% 17.5% 13.3%
Allocated costs -459.6 -371.5 23.7% -235.4 -178.1 -126.3 -101.4 -49.3 -39.3 -23.9 -28.5 -24.7 -24.1
Adjusted EBITA before HQ costs 342.3 343.6 -0.4% 208.2 271.3 99.3 69.3 41.3 33.2 0.3 -15.5 -6.8 -14.7
Adjusted EBITA margin before
allocated cost from HQ
11.3% 13.2% -2.0pp 15.8% 22.2% 8.8% 7.7 % 11.2% 11.8% 0.2% -12.6% -6.6% -20.8%
Allocated costs from HQ -24.9 -24.2 2.8% -16.7 -16.5 0.0 0.0 -4.8 -4.3 -1.7 -2.0 -1.7 -1.4
EBITA 317.4 319.4 -0.6% 191.5 254.8 99.3 69.3 36.4 28.9 -1.4 -17.5 -8.5 -16.1
EBITA margin 10.4% 12.3% -1.8pp 14.6% 20.8% 8.8% 7.7 % 9.9% 10.3% -1.1% -14.2% -8.3% -22.8%
Amortisation -68.4 -65.1 5.1% - 29.1 -34.4 -25.0 -14.6 -8.4 -8.9 -2.9 -4.1 -3.0 -3.0
Operating profit 249.0 254.3 -2.1% 162.5 220.4 74.3 54.7 28.0 20.0 -4.3 -21.6 -11.5 -19.1
Operating profit margin 8.2% 9.8% -1.6pp 12.4% 18.0% 6.6% 6.1% 7.6 % 7.1 % -3.4% -17.5% -11.2% -27.0%
CONTINUED
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
28
38
Segment information
Private 9 months
Group Denmark Intrasoft UK Norway Netherlands
DKK million
YTD 2023 YTD 2022 % change YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD 2022
Revenue 1,458.2 1,428.5 2.1% 825.7 894.6 397.6 324.3 126.5 126.2 107.7 82.1 0.6 1.3
Cost of service -1,014.9 -891.2 13.9% -499.8 -471.2 -316.9 -260.7 -90.9 -84.6 -106.8 -73.5 -0.5 -1.2
Gross profit 443.4 537.3 -17.5% 325.9 423.4 80.7 63.6 35.7 41.6 0.9 8.6 0.1 0.1
Gross profit margin
30.4% 3 7.6 % -7.2pp 39.5% 47.3% 20.3% 19.6% 28.2% 33.0% 0.8% 10.4% 15.3% 9.7%
Allocated costs -231.2 -184.4 25.4% -144.5 -118.7 -46.1 -34.2 -17.2 -14.7 -23.3 -16.4 -0.1 -0.4
Adjusted EBITA before HQ costs 212.1 352.9 -39.9% 181.4 304.7 34.6 29.4 18.5 26.9 -22.4 -7.8 -0.0 -0.2
Adjusted EBITA margin before
allocated cost from HQ
14.5% 24.7% -10.2pp 22.0% 34.1% 8.7% 9.1% 14.6% 21.3% -20.8% -9.5% -1.3% -18.0%
Allocated costs from HQ -13.6 -13.8 -1.8% -10.3 -11.0 0.0 0.0 -1.7 -1.6 -1.6 -1.1 -0.0 -0.0
Other operating income / expense 0.6 -0.4 -244.2% 0.0 0.0 0.6 -0.4 0.0 0.0 0.0 0.0 0.0 0.0
EBITA 199.2 338.7 -41.2% 171.2 293.7 35.2 29.0 16.8 25.2 -24.0 -9.0 -0.0 -0.3
EBITA margin
13.7% 23.7% -10.1pp 20.7% 32.8% 8.9% 8.9% 13.3% 20.0% -22.3% -10.9% -2.4% -19.7%
Amortisation -36.1 -35.2 2.7% -22.9 -24.1 -7.4 -5.3 -3.0 -3.4 -2.8 -2.4 -0.0 -0.0
Operating profit 163.1 303.5 -46.3% 148.2 269.6 27.9 23.7 13.8 21.8 -26.8 -11.3 -0.0 -0.3
Operating profit margin 11.2% 21.2% -10.1pp 17.9% 30.1% 7.0% 7.3% 10.9% 17.3% -24.9% -13.8% -4.4% -23.3%
CONTINUED
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
29
38
Segment information
Geographical
Segment information related to geographical areas
Q3 2023
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 686.2 186.2 167.3 177.5 69.2 58.3 42.9 74.0 1,461.7
Q3 2022
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 725.4 125.3 139.5 165.4 73.6 33.5 27.6 57.9 1,348.1
CONTINUED
Geographical 9 months and full year
Segment information related to geographical areas
YTD 2023
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 2,170.4 558.9 513.3 494.7 237.3 200.4 118.2 202.7 4,495.8
YTD 2022
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 2,139.4 392.2 419.5 559.7 208.2 71.2 75.1 160.1 4,025.3
Total 2022
DKK million
Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 2,915.2 584.0 555.2 672.0 295.2 155.9 109.0 258.1 5,544.6
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
30
38
Administrative costs
Cost of services
NOTE2
NOTE3
DKK million
Q3 2023 Q3 2022 YTD 2023 YTD 2022 Total 2022
Cost of services -293.6 -228.8 -842.7 -689.8 -983.2
Salaries -761.0 -642.3 -2,394.0 -2,065.2 -2,764.9
Depreciation -4.6 -5.9 -13.8 -17.9 -24.1
Cost of services total -1,059.3 -877.0 -3,250.5 -2,772.9 -3,772.2
DKK million
Q3 2023 Q3 2022 YTD 2023 YTD 2022 Total 2022
Administrative costs -88.9 -90.5 -305.3 -267.3 -369.4
Salaries -85.3 -67.0 -258.1 -216.8 -280.0
Depreciation -40.9 -27.5 -127.3 -80.9 -114.5
Administrative costs total -215.1 -185.1 -690.7 -565.1 -763.9
Financial income and expenses
NOTE4
DKK million
Q3 2023 Q3 2022 YTD 2023 YTD 2022 Total 2022
Financial Income
Exchange rate adjustments 9.3 9.9 17.0 16.6 27.3
Other financial income 0.7 0.5 1.9 2.2 3.0
Financial income total 10.0 10.4 18.9 18.8 30.3
Financial expenses
Interest expense, bank loan -22.5 -10.0 -62.6 -23.3 -41.8
Interest expense, leasing -7.1 -1.5 -15.4 -4.5 - 7.1
Exchange rate adjustments -10.6 -12.4 -27.8 -24.1 -34.7
Other financial expenses -5.3 -2.7 -13.0 -14.2 -16.6
Fair value adj. of contingent consideration 0.0 0.0 0.0 0.0 -7.9
Financial expenses total -45.6 -26.6 -118.7 -66.2 -108.1
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
31
38
Earnings per share
NOTE5
DKK million
Q3 2023 Q3 2022 YTD 2023 YTD 2022 Total 2022
Earnings per share - EPS (DKK) 1.61 3.45 4.81 7.88 12.26
Diluted earnings per share - EPS-D (DKK) 1.60 3.42 4.79 7.80 12.15
Profit 79.8 169.7 238.3 387.8 603.4
Average number of shares 50.0 50.0 50.0 50.0 50.0
Average number of treasury shares 0.4 0.9 0.5 0.8 0.8
Average number of shares in circulation 49.6 49.1 49.5 49.2 49.2
Average number of outstanding restricted stock units 0.3 0.5 0.3 0.5 0.5
Average number of diluted shares in circulation 49.9 49.6 49.8 49.7 49.7
The Group is continuously conducting in-
dividual assessments of bad debt. If this
leads to an assessment that the Group will
not be able to collect the amount account-
ed for, an allowance for expected credit
loss is made. At 30 September 2023, the
Group recognised a provision for expected
credit losses of DKK 21.8m (30 September
2022: DKK 18.3m), and no credit losses have
incurred during Q3 2023.
The credit quality of trade receivables at 30
September 2023 is considered satisfactory.
Trade receivables
NOTE6
30 September 30 September 31 December
DKK million
2023 2022 2022
Not overdue 689.1 707.5 746.5
0-30 days overdue 254.6 159.6 224.0
31-60 days overdue 46.6 57.4 61.4
61-90 days overdue 13.5 39.0 33.4
Over 90 days overdue 97.0 112.8 63.2
Total trade receivables excl. expected credit loss 1,100.8 1,076.3 1,128.5
Expected credit loss -21.8 -18.3 -16.6
Total trade receivables 1,079.1 1,057.9 1,112.0
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
32
38
Contract work in progress
NOTE7
30 September 30 September 31 December
DKK million
2023 2022 2022
Selling price of work performed on fixed price projects 4,064.0 3,963.9 3,811.9
Invoiced amount on fixed price projects -3,042.9 -3,121.2 -3,130.9
Total contract work in progress 1,021.1 842.7 681.0
Net value – stated on a contract-per-contract basis – is presented in the statement
of financial position as follows:
Contract work in progress 1,509.2 1,222.8 1,114.5
Prebilled invoices -488.2 -380.2 -433.5
Total contract work in progress 1,021.1 842.7 681.0
Based on the current project portfolio in-
cluding monitoring of deliveries on projects,
the Group has recognised a provision of
DKK 2.4m, covering legal claims and pro-
ject related risk (DKK 10.3m).
For further details on contingent purchase
price and earn out, please refer Annual Re-
port 2022 note 29.
Other costs include accruals for fee, ad-
ministration, sales and other items. Other
accruals liabilities have a remaining term
of up to one year.
Other payables
NOTE8
30 September 30 September 31 December
DKK million
2023 2022 2022
Wages and salaries, payroll taxes, social security costs, etc. payable 115.8 85.5 87.4
Holiday pay obligation 127.7 108.2 97.0
VAT and duties 96.4 99.3 111.0
Contingent purchase price & earn out 0.0 93.4 101.3
Holdback 10.2 60.8 10.2
Other costs payable 279.5 210.0 233.7
Total other payables 629.7 657.2 640.6
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
33
38
Income Statement classified by function
DKK million
Q3 2023 Q3 2022 YTD 2023 YTD 2022 Total 2022
Income statement
Revenue 1,461.7 1,348.1 4,495.8 4,025.3 5,544.6
Cost of services, incl. depreciation and amortisation -1,072.8 -885.7 -3,287.9 -2,793.9 -3,803.3
Gross profit 389.0 462.4 1,207.9 1,231.5 1,741.3
Sales and marketing costs -13.0 -10.6 -38.6 -28.9 -41.0
Administrative costs, incl. depreciation, amortisation and special items -237.4 -211.2 -757.7 -644.3 -866.8
Other operating income / expense -0.0 -0.5 0.6 -0.4 5.9
Operating profit (EBIT) 138.5 240.1 412.1 557.8 839.4
Financial income 10.0 10.4 18.9 18.8 30.3
Financial expenses -45.6 -26.6 -118.7 -66.2 -108.1
Income / loss from joint venture / associates -2.3 -2.5 -6.8 -10.3 -5.1
Profit / loss before tax 100.6 221.4 305.4 500.2 756.5
Tax on the profit for the period
-20.7 -51.7 -67.0 -112.8 -153.8
Net profit / loss for the period 80.0 169.7 238.5 387.3 602.8
Depreciation and Amortisation have been presented as follows in the
income statement:
Cost of services -18.1 -14.7 -51.3 -38.9 -55.3
Administrative costs -63.2 -53.7 -194.3 -160.2 -217.4
Depreciation and amortisation -81.4 -68.3 -245.6 -199.0 -272.7
NOTE9
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
34
38
As part of its contract commitments with
customers, the Group has through its
banks provided performance guarantees
of DKK 467.2m (DKK 405.8m).
In Q3 2023, Netcompany recognised
revenue from Smarter Airports A/S of
DKK 7.4m (DKK 12.9m).
There are no collaterals provided for
the Group’s bank loan.
Related party transactions
Collateral provided and contingent liabilities
NOTE10
NOTE11
The annual consolidated financial state-
ments of the Group are prepared in accord-
ance with IFRS as adopted by the Europe-
an Union. The interim consolidated financial
statements included in this Q3 2023 finan-
cial report have been prepared
Accounting policies
NOTE12
in accordance with IAS 34 “Interim Finan-
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, except for amended inter-
pretation of IFRS 3 section B55(a) which
state that earn-out payments subject
to the selling shareholders continued
employment during a specified period
of time is expensed as remuneration
over the period in accordance with the
outcome of the compliance review of
Netcompany Group A/S’ Annual Reports
for 2020 and 2021 by the Danish Business
Authorities.
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
35
38
% change % change
DKK million
Q3 2023 Q3 2022 Q3 YTD 2023 YTD 2022 YTD
Income statement
Public revenue 1,003.9 885.4 13.4% 3,037.6 2,596.8 17.0%
Private revenue 457.8 462.8 -1.1% 1,458.2 1,428.5 2.1%
Revenue by segments, total 1,461.7 1,348.1 8.4% 4,495.8 4,025.3
11.7%
Development revenue 433.1 657.5 -34.1% 1,578.6 1,916.5 -17.6%
Maintenance revenue 1,025.9 683.5 50.1% 2,876.8 2,096.4 37.2%
License revenue 2.8 7.1 -61.0% 40.4 12.5 224.5%
Revenue by types, total 1,461.7 1,348.1 8.4% 4,495.8 4,025.3
11.7%
Organic revenue 1,461.7 943.5 8.4% 4,495.8 2,803.1 11.7%
Non-organic revenue 0.0 404.6 N /A 0.0 1,222.2 N/A
Revenue by growth, total 1,461.7 1,348.1 8.4% 4,495.8 4,025.3
11.7%
Adjusted EBITDA 219.9 308.9 -28.8% 657.1 757.3 -13.2%
EBITDA 219.9 308.4 -28.7% 657.7 756.9 -13.1%
Adjusted EBITA 174.3 275.5 -36.7% 516.0 658.5 -21.6%
EBITA 174.3 275.0 -36.6% 516.6 658.1 -21.5%
Operating profit (EBIT) 138.5 240.1 -42.3% 412.1 557.8 -26.1%
Net financials -35.6 -16.2 119.4% -99.9 -47.3 110.9%
Net profit / loss 80.0 169.7 -52.9% 238.5 387.3 -38.4%
Financial position
Capex -36.2 -45.0 -19.6% -157.7 -95.7 64.8%
Total assets 7,879.8 7,013.4 12.4% 7,879.8 7,013.4 12.4%
Equity 3,752.9 3,345.1 12.2% 3,752.9 3,345.1 12.2%
Net increase in cash and cash equivalents 63.3 -24.0 -363.8% -235.0 -229.1 2.6%
Free cash flow 100.4 221.5 -54.7% 169.5 279.4 -39.3%
Free cash flow (tax normalised) 79.4 174.9 -54.6% 153.0 281.2 -45.6%
Financial figures and highlights Q vs. Q
NOTE13
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
36
38
Earnings per share
Earnings per share (DKK) 1.61 3.45 -53.4% 4.81 7.88 -38.9%
Diluted earnings per share (DKK) 1.60 3.42 -53.2% 4.79 7.80 -38.7%
Employees
Average number of full-time employees 7,760 7,039 10.2% 7,652 6,757 13.2%
Financial ratios
Revenue growth 8.4% 68.9% -60.5pp 11.7% 62.3% -50.6pp
Gross profit margin 27.5% 34.9% -7.4pp 27.7% 31.1% -3.4pp
Adjusted EBITDA margin 15.0% 22.9% -7.9pp 14.6% 18.8% -4.2pp
EBITDA margin 15.0% 22.9% -7.8pp 14.6% 18.8% -4.2pp
Adjusted EBITA margin 11.9% 20.4% -8.5pp 11.5% 16.4% -4.9pp
EBITA margin 11.9% 20.4% -8.5pp 11.5% 16.3% -4.9pp
Operating profit margin 9.5% 17.8% -8.3pp 9.2% 13.9% -4.7pp
Effective tax rate 20.5% 23.4% -2.8pp 21.9% 22.6% -0.6pp
Return on equity 2.3% 5.5% -3.3pp 6.7% 12.6% -5.9pp
Solvency ratio 47.6% 47.7% -0.1pp 47.6% 47.7% -0.1pp
ROIC 1.5% 4.1% -2.6pp 4.5% 9.3% -4.8pp
ROIC (Adjusted for Goodwill) 4.1% 12.7% -8.6pp 12.2% 29.0% -16.8pp
Cash conversion ratio 93.0% 112.5% -19.4pp 53.0% 60.0% -7.0pp
Cash conversion ratio (tax normalised) 73.6% 88.8% -15.2pp 47.8% 60.4% -12.6pp
% change % change
DKK million
Q3 2023 Q3 2022 Q3 YTD 2023 YTD 2022 YTD
FINANCIALHIGHLIGHTSANDKEYFIGURESQVS.Q
CONTINUED
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
37
38
Formulas
Organic
revenue
=
Revenue not classified as
non-organic revenue
Non-organic
revenue
=
Revenue from acquired businesses
the first 12 months after acquisition
Organic
Growth
1
=
Organic revenue current year x 100
Revenue last year
Gross profit
margin
1,2
=
Gross profit x 100
Revenue
EBITA
1,2
= Operating profit + Amortisation
EBITA
margin
1,2
=
EBITA x 100
Revenue
Adjusted
EBITA
=
EBITA + Special items + Other
operating income
Adjusted
EBITA
margin
=
Adjusted EBITA x 100
Revenue
Capex
1,2
=
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
Days sales
outstanding
1,2
=
Trade receivables x days
Revenue
Return on
equity
2
=
Net profit for the period x 100
Average equity
Return on
invested
capital
(ROIC)
1,2
=
Net profit x 100
Average invested capital
ROIC
(Adjusted for
Goodwill)
1
=
Net profit x 100
Average invested capital
– average Goodwill
Solvency
(equity ratio)
1
=
Equity x 100
Total assets
Operating
profit margin
1
=
Operating profit x 100
Revenue
EBITDA
1,2
= EBIT + Depreciation and amortisation
EBITDA
margin
=
EBITDA x 100
Revenue
Adjusted
EBITDA
=
EBITDA + Special items + Other
operating income
Adjusted
EBTIDA
margin
=
Adjusted EBITDA x 100
Revenue
EPS
1
=
Net profit - Non-controlling interest
Average outstanding shares
EPS diluted
1
=
Net profit - Non-controlling interest
Average outstanding shares
+ Diluted shares
Free cash
flow
1,2
=
Cash flow from operating activities
- Capex
1
Key figures defined according to IFRS.
2
Key figures defined according to “Recommendations &
Financial Ratios” issued by the Danish Finance Society.
Key figures and financial ratios have been compiled in accordance with the following calculation formulas.
Netcompany grew topline by 9.2% in Q3 driven by strong performance internationally. Cash flow improved sequentially from Q2 as expected.
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 12/2023
2 November 2023
38
38
Disclaimer
This report contains forward-looking state-
ments including, but not limited to, the
statements and expectations contained in
the outlook section. Forward-looking state-
ments are statements (other than state-
ments of historical fact) relating to future
events and Netcompany’s anticipated or
planned financial and operational perfor-
mance.
The words ‘may’, ‘will’, ‘will continue’,
‘should’, ‘expect’, ‘foresee’, ‘anticipate’, ‘be-
lieve’, ‘estimate’, ‘plan’, ‘predict’, ‘intend’ or
variations of these words, including nega-
tives thereof, as well as other statements
regarding matters that are not historical
fact or regarding future events or pros-
pects, constitute forward-looking state-
ments.
Netcompany has based these for-
ward-looking statements on its current
views with respect to future events and
financial performance. These views involve
a number of risks and uncertainties, which
could cause actual results to differ materi-
ally 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 reasonable,
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 particular, includ-
ing those described in Netcompany Group
A/S’ Annual Report 2022 and other infor-
mation made available by Netcompany.
Factors that may affect future results in-
clude, but are not limited to, global and
economic conditions, including currency
exchange rate and interest rate fluctua-
tions, delay or failure of projects related to
research and/or development, unexpected
contract breaches or terminations, un-
planned loss of patents, government-man-
dated or market-driven price decreases
for Netcompany’s products, introduction
of competing products, reliance on infor-
mation technology, Netcompany’s ability to
successfully market current and new prod-
ucts, exposure to product liability, litigation
and investigations, regulatory develop-
ments, actual or perceived failure to adhere
to ethical marketing 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 re-
sult of new information, future events
or otherwise, except to the extent required
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.