Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Netcompany
Q4 2023
Company Announcement
Twelve months ended 31 December 2023
Double digit growth and strong cash flow delivered
in a challenging year
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
1
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Summary
Revenue increased by 4.2% (constant 4.9%)
DKK 1,582.6m
Q
DKK 1,519.3m
Q
Conference call details
In connection with the publication of the results for Q4 2023, Netcompany will host a
conference call on 25 January at 11.00 CET.
The conference call can be followed live via
https://netcompany-as.eventcdn.net/events/annual-report-for-the-financial-year-2023
For further dial-in details please visit the company’s website; www.netcompany.com
DKK 6,078.4m
YTD
DKK 5,544.6m
YTD
DKK 244.1m
Q
DKK 348.9m
Q
DKK 901.2m
YTD
DKK 1,106.2m
YTD
Q
23.0%
Q
YTD
YTD
15.4%
Adj. EBITDA decreased 30%
Adj. EBITDA margin decreased by 7.5pp
20.0%
14.8%
DKK 382.6m
Q
DKK 323.4m
Q
DKK 552.1m
YTD
DKK 602.7m
YTD
Q
149.5%
Q
YTD
YTD
386.9%
85.2%
135.1%
7,765 FTEs
Q
7,353 FTEs
Q
7,684 FTEs
YTD
6,906 FTEs
YTD
Average employees increased by 412 FTEs
Q
1.4x
Q
1.4x
Debt leverage was unchanged
Cash conversion ratio (tax normalised) was 386.9%
Free cash flow increased by 18.3%
Cash conversion ratio was 135.1% for the full year
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
2
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
“Based on strong performance in the international part of the Group of more than 20% growth, we ended the year
satisfactorily, and in line with our guidance, at 10.7% revenue growth for the Group, and at 14.9% adjusted EBITDA
margin.
Towards the end of the year, we have seen a shift in customer sentiment in the Danish private segment and we
have begun to convert pipeline cases accordingly. Furthermore, we begin the year with improved revenue visibility.
Macroeconomic outlook still looks uncertain though, and the high level of geo-political unrest experienced in 2023
prevails. Therefore, we expect to grow revenue between 7% and 10% and deliver adjusted EBITDA margin between
15% and 18% in 2024.
We remain committed to our midterm financial targets, and based on strong free cash flow generated in Q4 2023,
we initiate the first tranche of our DKK 2bn share buyback programme. The first tranche of our share buyback
programme amounts to DKK 150m and will be executed between 25 January and 1 May 2024.
I am proud of the results delivered in a challenging year by our more than 7,700 dedicated and talented employees.
In combination with our enhanced Go-To-Market strategy focussing more on products and platforms and
reusability, I am confident that we are on track to become a European market leader.”
André Rogaczewski
NETCOMPANYCEOANDCOFOUNDER
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
3
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Performance overview Q4
Q4 2023 Q4 2023 % change % change
DKK million (reported) (constant)* Q4 2022 (reported) (constant)*
Revenue 1,582.6 1,594.2 1,519.3 4.2% 4.9%
Cost of services -1,125.0 -1,131.1 -999.3 12.6% 13.2%
Gross profit 457.7 463.1 520.0 -12.0% -11.0%
Gross profit margin 28.9% 29.0% 34.2% -5.3pp -5.2pp
Sales and marketing costs -16.1 -14.6 -12.1 33.0% 21.2%
Administrative costs -244.9 -247.2 -198.8 23.2% 24.3%
Adjusted EBITA 196.7 201.2 309.1 -36.4% -34.9%
Adjusted EBITA margin 12.4% 12.6% 20.3% -7.9pp -7.7pp
Special items -0.5 -0.5 0.0 N/A N/A
Other operating income / expense -0.6 -0.6 6.3 -109.7% -109.7%
EBITA 195.7 200.1 315.4
-38.0% -36.6%
EBITA margin
12.4% 12.6% 20.8% -8.4pp -8.2pp
Amortisation -29.7 -29.8 -33.8 -12.2% -12.1%
Operating profit (EBIT) 165.9 170.4 281.6
-41.1% -39.5%
Operating profit margin
10.5% 10.7% 18.5% -8.0pp -7.8pp
Net financials -38.2 -38.3 -30.5 25.4% 25.9%
Income / loss, joint venture / associates
-0.9 -0.9 5.2 -116.9% -116.9%
Profit / loss before tax 126.9 131.1 256.4
-50.5% -48.9%
Tax -61.3 -61.2 -41.0 49.7% 49.5%
Effective tax rate
48.3% 46.7% 16.0% 32.3pp 30.7pp
Net profit / loss 65.6 69.9 215.4
-69.6% -67.5%
Additional KPIs
Adjusted EBITDA 244.1 248.7 348.9 -30.0% -28.7%
Adjusted EBITDA margin
15.4% 15.6% 23.0% -7.5pp -7.4pp
Free cash flow 382.6 N/A 323.4 18.3% N/A
Cash conversion rate
431.1% N/A 133.7% 297.4pp N/A
*Constant currencies measured using average exchange rates for Q4 2022
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
4
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Net financials were negative DKK 38.2m
compared to negative DKK 30.5m for the
same period last year. The main reason for
the increased financial costs were the in-
crease in the interest rate level.
Income taxes in Q4 2023 were DKK 61.3m
compared to DKK 41m in the same quar-
ter last year. Effective tax rate was 48.3%
compared to 16% for Q4 2022. The increase
in the effective tax rate was mainly caused
by non-deductable interest in Netcompany
Denmark and completion of tax audit in
Netcompany-Intrasoft regarding 2017-2020
resulting in an additional tax expense.
Free cash flow was strong and improved
significantly to DKK 382.6m in Q4 2023
corresponding to an improvement of DKK
59.2m compared to the same quarter last
year.
preciation mainly related to leases regard-
ing the new HQ in Copenhagen and Athens.
In addition, approximately DKK 7m were re-
lated to the enhanced Go-To-Market in line
with previous quarters in 2023.
Adjusted EBITDA was DKK 244.1m in Q4
2023, yielding an adjusted EBITDA margin
of 15.4%. The 7.5 percentage point lower
margin compared to the same quarter last
year, was a result of lower gross profit and
increased administrative costs. Margin was
negatively impacted by the provision for
severance payment by DKK 14.2m corre-
sponding to approximately 1 percentage
point.
Amortisation were DKK 29.7m in Q4 2023
and DKK 4.1m lower than the same period
last year driven by some intangibles rec-
ognised at the acquisition of Netcompany
Norway and Netcompany-Intrasoft being
fully amortised in the beginning of the quar-
ter.
Operating profit (EBIT) was DKK 165.9m
and thereby DKK 115.7m lower than for Q4
2022 yielding a margin of 10.5% compared
to 18.5% for Q4 2022.
Reported revenue grew 4.2% (constant
4.9%) in Q4 2023 to DKK 1,582.6m. Reve-
nue from public clients increased by 7.3%,
whereas revenue from private clients were
in line with the same period last year. Client
facing FTEs grew 5.9% and FTEs at the end
of Q4 2023 amounted to 7,274.
Gross profit margin was 28.9%, compared
to 34.2% the same period last year. The
lower gross profit margin was driven by
lower margins in all business units main-
ly due to lower utilisation, besides in the
Netherlands.
Sales and marketing costs were 33% higher
than the same period in 2022 at DKK 16.1m,
driven by an increased level of market
awareness activities internationally. In ab-
solute terms the increase was minor at DKK
4m of which currency fluctuation account-
ed for DKK 1.5m.
Administrative costs increased by 23.2% to
DKK 244.9m in Q4 2023. The increase was
related to provision for severance payment
and an increase in depreciation. Depreci-
ation accounted for DKK 9.4m of the total
increase of DKK 46m. The increase in de-
PERFORMANCEOVERVIEWQ4CONTINUED
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
5
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Business Segments Q4
DKK million
Q4 2023
Constant (2022 rate)
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,594.2 732.0 563.9 150.6 102.5 45.3
Gross profit 467.5 286.5 109.2 35.2 22.8 13.8
Gross profit margin 29.3% 39.1% 19.4% 23.4% 22.2% 30.4%
Local admin costs -214.2 -120.5 -53.6 -18.3 -14.3 -7.6
Adjusted EBITDA before allocated cost from HQ 253.3 166.1 55.6 16.9 8.5 6.2
Adjusted EBITDA margin before allocated cost from HQ 15.9% 22.7% 9.9% 11.2% 8.3%
13.7%
Allocated costs from HQ -4.6 -3.2 0.0 -0.7 -0.5 -0.2
Special Items, allocated -0.5 -0.3 0.0 -0.1 -0.0 -0.0
Depreciation -47.6 -23.6 -16.0 -3.8 -2.5 -1.6
Amortisation -29.8 -12.5 -12.6 -2.4 -1.5 -0.8
Other operating income / expense -0.6 0.0 -0.6 0.0 0.0 0.0
EBIT 170.4 126.5 26.4 10.0 4.0 3.5
Client facing FTEs 7,275 2,766 3,340 629 367 173
DKK million
Q4 2022
Reported
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 1,519.3 759.3 510.4 132.4 86.6 30.6
Gross profit 526.4 341.2 116.5 41.5 20.0 7.2
Gross profit margin 34.6% 44.9% 22.8% 31.3% 23.1% 23.5%
Local admin costs -178.2 -101.1 -37.9 -16.4 -14.8 -7.9
Adjusted EBITDA before allocated cost from HQ 348.1 240.1 78.6 25.0 5.2 -0.7
Adjusted EBITDA margin before allocated cost from HQ 22.9% 31.6% 15.4% 18.9% 6.0%
-2.2%
Allocated costs from HQ 0.7 0.5 0.0 0.1 0.1 0.1
Depreciation -39.8 -22.7 -10.2 -3.6 -1.8 -1.5
Amortisation -33.8 -18.8 -8.7 -3.2 -2.0 -1.0
Other operating income / expense 6.3 0.0 6.3 0.0 0.0 0.0
EBIT 281.6 199.0 66.1 18.3 1.4 -3.1
Client facing FTEs 6,871 2,843 3,024 528 336 141
Revenue, %
.%
.%
.%
Q4 2023
.%
.%
Revenue, %
.%
.%
.%
Q4 2022
.%
.%
NORWAY
DENMARK
UNITEDKINGDOM
INTRASOFT
NORWAY
DENMARK
UNITEDKINGDOM
NETHERLANDS
INTRASOFT
NETHERLANDS
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
6
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Adjusted EBITDA margin was 8.3% com-
pared to 6% in Q4 2022. The positive devel-
opment in Netcompany Norway is expect-
ed to continue into 2024.
In December 2023, Netcompany Norway
was chosen as exclusive strategic partner
by Avinor, the operator of 43 airports and
the airspace over Norway. An agreement
for up to seven years, valued at NOK 1.2bn.
Netcompany Netherlands
Revenue in the Dutch business unit contin-
ued its strong momentum and grew 48%
in Q4 2023. Growth was generated in the
public segment, that grew revenue 50.6%
Adjusted EBITDA margin was 13.7% in Q4
2023 compared to negative 2.2% in Q4
2022. The increase in margin was a result
of the continued improvement in project
execution and better pricing.
Pipeline in Netcompany Netherlands con-
tinue to look promising, and the number of
client facing FTEs increased by 23% com-
pared to the same quarter last year.
Netcompany UK was selected as supplier
for in Q3 2023. The increased tender writ-
ing activities associated with DALAS led to
lower utilisation and thus lower gross profit
margin.
Adjusted EBITDA margin was 11.2% in Q4
2023 compared to 18.9% in the same
period last year. The lower margin in Q4
this year was expected due to increased
amount of time spent on tender writing for
the DALAS framework. Revenue from the
DALAS framework is expected in the sec-
ond half of 2024.
Client facing FTEs grew by 19% in Q4 2023.
Netcompany Norway
Revenue growth in Norway was 18.4% in
Q4 2023 compared to the same period last
year.
The private segment grew 28% in Q4 2023
compared to the same period last year,
whereas the public segment grew 11.9%
compared to the year before.
Gross margin declined 0.9 percentage
points compared to the same quarter last
year, but sequentially increased 17.7 per-
centage point compared to Q3 2023, as
utilisation increased.
13.9%, while the private segment revenue
was on level with Q4 last year.
During Q4 2024 Netcompany-Intrasoft
continued to win new contracts within the
Recovery and Resilience Facility (RRF) in
Greece, but as comparables are getting
tougher, a more normalised growth level is
expected for Netcompany-Intrasoft going
forward.
Client facing FTEs grew 10.5% in Q4 2023.
Adjusted EBITDA margin was 9.9% in Q4
2023 compared to 15.4% in the same peri-
od last year due to lower license revenue in
Q4 2023 compared to Q4 2022 and higher
local administration costs.
Netcompany UK
In the UK, revenue grew 13.7% compared to
the same period last year. The growth was
driven by the public segment, where rev-
enue grew by 16.2%. The private segment
grew 8.1% compared to the same period
last year.
During Q4 2023, Netcompany UK spent in-
creased time on tender writing for the first
four tenders within the DALAS framework
– a four-year framework agreement that
Netcompany Denmark
In Q4 2023, public revenue in the Danish
business unit declined 1.9% compared to
the same period last year and the private
segment declined 6%, which led to a 3.6%
decline in total revenue in the Danish busi-
ness unit in the quarter. Despite the decline
in revenue, we have seen a positive devel-
opment in conversion of the pipeline – es-
pecially in the private segment, during the
period.
Gross profit margin was 39.1% in Q4 2023
compared to 44.9% in the same period last
year as utilisation continued to be below
normal levels.
Adjusted EBITDA margin was 22.7% in com-
pared to 31.6% in Q4 2022. The lower mar-
gin was a result of lower activity in both the
public and private segment.
Client facing FTEs decreased 2.7% com-
pared to Q4 2022, as effect of the right-
sizing of the pyramid structure during 2023.
Netcompany-Intrasoft
Revenue in Netcompany-Intrasoft grew
by 10.5% to DKK 563.9m in Q4 2023. The
growth in Q4 was driven by strong perfor-
mance in the public and EU area that grew
BUSINESSSEGMENTSQ4CONTINUED
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
7
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Performance overview 12 months
YTD 2023 YTD 2023 % change % change
DKK million
(reported) (constant)* YTD 2022 (reported) (constant)*
Revenue 6,078.4 6,135.7 5,544.6 9.6% 10.7%
Cost of services -4,375.5 -4,415.1 -3,772.2 16.0% 17.0%
Gross profit 1,703.0 1,720.6 1,772.5
-3.9% -2.9%
Gross profit margin 28.0% 28.0% 32.0% -4.0pp -3.9pp
Sales and marketing costs -54.7 -52.6 -41.0 33.5% 28.3%
Administrative costs -935.5 -945.7 -763.9 22.5% 23.8%
Adjusted EBITA 712.7 722.2 967.6
-26.3% -25.4%
Adjusted EBITA margin 11.7% 11.8% 17.5% -5.7pp -5.7pp
Special items -0.5 -0.5 0.0 N/A N/A
Other operating income / expense -0.0 -0.0 5.9 -100.1% -100.0%
EBITA 712.2 721.7 973.5
-26.8% -25.9%
EBITA margin
11.7% 11.8% 17.6% -5.8pp -5.8pp
Amortisation -134.2 -134.3 -134.1 0.1% 0.2%
Operating profit (EBIT) 578.0 587.4 839.4
-31.1%
-30.0%
Operating profit margin
9.5% 9.6% 15.1% -5.6pp -5.6pp
Net financials -138.0 -138.5 -77.8 77.5% 78.0%
Income / loss, joint venture / associates -7.7 -7.7 -5.1 51.5% 51.5%
Profit / loss before tax 432.3 441.3 756.5
-42.9% -41.7%
Tax -128.2 -128.4 -153.8 -16.6% -16.5%
Effective tax rate
29.7% 29.1% 20.3% 9.3pp 8.8pp
Net profit / loss 304.0 312.9 602.8
-49.6% -48.1%
Additional KPIs
Adjusted EBITDA 901.2 911.8 1,106.2 -18.5% -17.6%
Adjusted EBITDA margin
14.8% 14.9% 20.0% -5.1pp -5.1pp
Free cash flow 552.1 N/A 602.7 -8.4% N/A
Cash conversion rate
135.1% N/A 85.2% 49.9pp N/A
*Constant currencies measured using average exchange rates for 2022
Revenue grew 9.6% in 2023 (constant 10.7%) to
DKK 6,078.4m in 2023. The international part of
the Group grew 20.2% in 2023 and accounted
for 52.8% of the Group revenue. The public seg-
ment grew revenue by 14.3%, while private seg-
ment revenue was on level with 2022.
Client facing FTEs grew 11.5% and the average
number of FTEs amounted to 7,684.
Gross profit margin was 28% in 2023, which was
4 percentage points lower than in 2022. The de-
crease in gross margin was mainly caused by a
lower margin in the Danish segment.
Adjusted EBITDA was DKK 901.2m in 2023, a
18.5% decrease compared to the year before.
The adjusted EBITDA margin was 14.8% (con-
stant 14.9%), as provision for severance payment
realised in Q4 2023 amounted to DKK 14.2m and
impacted margin negatively by 0.2 per centage
points, consequently adjusted EBITDA margin
before sev erance payments was 15.1%.
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
8
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Business Segments 12 months
DKK million
YTD 2023
Constant (2022 rate)
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 6,135.7 2,872.0 2,089.2 658.4 367.4 148.6
Gross profit 1,738.8 1,069.2 416.6 165.4 55.7 31.8
Gross profit margin 28.3% 37.2% 19.9% 25.1% 15.2% 21.4%
Local admin costs -784.0 -431.7 -186.5 -77.5 -60.4 -27.8
Adjusted EBITDA before allocated cost from HQ 954.8 637.5 230.1 87.9 -4.7 4.0
Adjusted EBITDA margin before allocated cost from HQ 15.6% 22.2% 11.0% 13.4% -1.3%
2.7%
Allocated costs from HQ -43.0 -30.1 0.0 -7.2 -3.7 -2.0
Special Items, allocated -0.5 -0.3 0.0 -0.1 -0.0 -0.0
Depreciation -189.6 -105.6 -56.5 -12.7 -8.7 -6.1
Amortisation -134.3 -64.5 -44.9 -13.8 -7.2 -3.9
EBIT 587.4 437.0 128.7 54.2 -24.4 -8.0
Client facing FTEs 7,195 2,837 3,228 613 355 162
DKK million
YTD 2022
Reported
Group Denmark Intrasoft UK Norway Netherlands
Revenue from external customers 5,544.6 2,877.2 1,732.7 540.1 292.0 102.7
Gross profit 1,796.7 1,231.4 351.3 155.6 41.6 16.8
Gross profit margin 32.4% 42.8% 20.3% 28.8% 14.2% 16.3%
Local admin costs -653.2 -362.5 -145.3 -62.6 -54.2 -28.4
Adjusted EBITDA before allocated cost from HQ 1,143.5 868.9 206.0 93.0 -12.6 -11.6
Adjusted EBITDA margin before allocated cost from HQ 20.6% 30.2% 11.9% 17.2% -4.3%
-11.3%
Allocated costs from HQ -37.3 -27.0 0.0 -5.8 -3.0 -1.4
Depreciation -138.6 -75.4 -38.9 -11.5 -7.4 -5.5
Amortisation -134.1 -77.4 -28.6 -15.6 -8.5 -4.0
Other operating income / expense 5.9 0.0 5.9 0.0 0.0 0.0
EBIT 839.4 689.0 144.4 60.0 -31.5 -22.6
Client facing FTEs 6,453 2,659 2,856 505 297 137
Revenue, %
.%
.%
.%
YTD 2023
.%
.%
Revenue, %
.%
.%
.%
YTD 2022
.%
.%
NORWAY
DENMARK
UNITEDKINGDOM
NETHERLANDS
INTRASOFT
NORWAY
DENMARK
UNITEDKINGDOM
NETHERLANDS
INTRASOFT
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
9
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Netcompany Denmark
Revenue in the Danish business unit was on
level with the year before. The public seg-
ment grew 4.9% compared to 2022 and the
private segment declined 7.3%. During 2023
pipeline conversion in the private segment
was prolonged as a consequence of the
high level of macroeconomic uncertainty.
This improved during Q4 2023 where more
pipeline cases were converted to projects.
Client facing FTEs grew 6.7% in 2023.
Adjusted EBITDA margin was 22.2% com-
pared to 30.2% in 2022. The lower margin
was an effect of higher level of forced
churn, lower utilisation, 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 30.2m to
DKK 105.6m in the 2023. The increase was
mainly related to leases of which DKK 18.1m
was due to the termination of the previous
HQ in Copenhagen.
Netcompany-Intrasoft
Revenue in Netcompany-Intrasoft grew
by 20.6% to DKK 2,089.2m in 2023. The
growth was driven by strong performance
in both the public and EU area that grew
22.1% and in the private segment that grew
16.3%. Revenue in Netcompany-Intrasoft is
expected to grow more moderate, between
5-10%, in the years to come, as 2023 was
impacted by extraordinary high revenue
growth from the RRF programme. This rel-
ative increase is not expected in 2024 and
2025.
Client facing FTEs grew 13% in 2023.
Adjusted EBITDA margin was 11% in 2023
compared to 11.9% last year. The lower mar-
gin was a result of one-off items realised
in 2022. Adjusted for these, margin in 2022
would have been 11.3%.
Netcompany UK
Revenue in Netcompany UK grew by 21.9%
in 2023 to DKK 658.4m. The continued
strong revenue growth in UK was driven by
BUSINESSSEGMENTS12MONTHSCONTINUED
growth in the public sector in UK that grew
29.8% in 2023 compared to 2022.
Client facing FTEs grew 21.4% in 2023.
Adjusted EBITDA margin was 13.4% in 2023
compared to 17.2% the year before. The
decline in margin was caused by increased
time spent on tender preparation and busi-
ness development for the DALAS frame-
work especially in the second half of 2023.
Netcompany Norway
Revenue growth in Netcompany Norway
was 25.8% in 2023 compared to the year
before. The growth in revenue was driven
by an increase in the private segment, that
grew 42.4% and the public segment that
grew 14.7% in 2023.
Client facing FTEs grew 19.7% in 2023.
Adjusted EBITDA margin was negative 1.3%
compared to negative 4.3% in 2022. Net-
company Norway is expected to become
profitable within 2024.
Netcompany Netherlands
Revenue in Netcompany Netherlands grew
44.7% in 2023. The strong revenue growth
in the Dutch business unit was solely driven
by the public sector.
Client facing FTEs grew 18.5% in 2023.
Adjusted EBITDA margin was 2.7% com-
pared to negative 11.3% in 2022. The margin
improvement is expected to continue and
to contribute positive to the midterm 2026
EBITDA margin target.
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
10
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Netcompany measures revenue visibility
on a 12-month rolling basis, based on two
main input parameters, defined as total
value of committed engagements, which
comprise of fixed price engagements and
service agreements, and ongoing time and
material engagements with a high likeli-
hood of conversion and/or prolongation,
defined as total value of planned continued
engagements.
Revenue visibility for 2024 amounts to DKK
4,904.1m, of which contractual committed
revenue amounts to DKK 4,566.1m and
non-contractual committed engagements
amount to DKK 338m.
Revenue visibility improved by 17.3% from
DKK 4,179.9m for 2023 to DKK 4,904.1m for
2024.
Revenue visibility for 2024 in the public
segment amounts to DKK 3,465.2m, an
increase of 19.9% compared to last year,
of which contractual committed revenue
amounts to DKK 3,297.8m and non-con-
tractual committed engagements amount
to DKK 167.4m.
Revenue visibility
Revenue visibility for 2024 in the private
segment amounts to DKK 1,438.9m, an
increase of 11.6% compared to last year,
of which contractual committed revenue
amounts to DKK 1,268.3m and non-con-
tractual committed engagements amount
to DKK 170.6m.
In 2024, DKK 1,908.1m is expected to be
released from the Netcompany-Intrasoft
order backlog, mainly within EU institutions,
and additional DKK 5,081.7m is expected
to be released in the period from 2025 to
2031, also mainly within EU institutions.
DKK million
.
,.
.
.
.%
.%
.%
.%
,.
,.
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Total
Public segment Private segment Total segment
Non con-
tractual
committed
,.-
.%
.%
.
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Total
Non con-
tractual
committed
Contractual
committed
Netcompany
Core
Contractual
committed
Netcompany
Intrasoft
Total
Non con-
tractual
committed
,.
.
.%
.%
,.
.%
,.
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
11
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Employees
Netcompany employed an average of 7,765
FTEs in Q4 2023, which was an increase
of 412 FTEs or 5.6% compared to Q4 2022
(7,353). On a sequential basis FTEs in Q4
2023 were on par with FTEs in Q3 2023.
The number of client facing employees for
the Group increased by 404 from 6,871 in Q4
2022 to 7,275 in Q4 2023, while the level of
non-client facing employees was 6.3% in Q4
compared to 6.5% in Q4 2022.
Sequentially, client facing employees in-
creased by four FTEs from Q3 to Q4 2023.
The attrition rate for the last twelve months
was 15.3%, which was a decrease of 5.9
percentage points compared to 21.2% in
2022.
Avg. FTEs increased to 7,765 during Q4 2023
YTD
Attrition rate
.%
.%
.%
.%
.%
.%
.%
DK NO UK NL
.%
GR LUBE
.%
.%
.%
.%
LTMDECEMBER2022
LTMDECEMBER2023
3MONTHSROLLING
CHURNDECJAN2024
%
%
%
%
%
%
%
%
%
%
.%
.%
.%
.%
.%
.%
.%
.%
.%
YTD
,
,
,
,
Q
,
,
NONCLIENTFACING
FREELANCERS
UNITEDKINGDOM POLAND
DENMARK
UKCONTRACTORS
VIETNAM
NETHERLANDS
NORWAY
INTRASOFT
,
,, ,
,
,
,
,
,
,
,
,
,
,
,
,
,
Q
,
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
12
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Free cash flow and cash conversion rate
1
The Group generated a free cash flow of
DKK 382.6m in Q4 2023, which was an in-
crease of 18.3% compared to DKK 323.4m
in Q4 2022 despite an operating profit that
was DKK 115.7m lower. Adjusted for taxes
paid on account, the Group generated a
free cash flow of DKK 343.4m in Q4 2023
compared to DKK 361.4m in Q4 2022.
The strong cash flow was driven by im-
proved working capital changes. Changes
in working capital were mainly driven by
release from work in progress in Q4 2023
of DKK 318.4m. This was somewhat offset
by trade recievables, which increasd by
DKK 180.2m in Q4 2023.
Cash conversion rate improved from 133.7%
in Q4 2022 to 431.1% in Q4 2023. 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 2022, cash con-
version rate increased from 144.7% in Q4
2022 to 386.9% in Q4 2023.
For the full year, Netcompany generated a
free cash flow of DKK 552.1m correspond-
ing to a decrease of 8.4% compared to
2022 caused by earnings which decreased
by 30%.
Cash conversion ratio increased from
85.2% in 2022 to 135.1% in 2023.
Trade receivables
At 31 December 2023, Group trade
receivables increased 13.5% from DKK
1,112.0m to DKK 1,261.8m compared to 9.6%
growth in revenue. Trade receivables was
impacted by the release of DKK 318.4m
from work in progress during Q4 2023
compared to a release of DKK 161.6m in Q4
2022.
Days sales outstanding increased from 67
days in Q4 2022 to 73 days in Q4 2023.
The overdue part of trade receivables ex-
cluding expected credit losses increased
from 33.9% by the end of Q4 2022 to 35.5%
by the end of Q4 2023 solely caued by
trade receivables overdue by 0-30 days.
The overdue part of trade receivables over-
due by more than 30 days accounted for
11.8% end of Q4 2023, compared to 14%
end of Q4 2022.
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,
31 December 2023
826.2 302.9 67.8 13.4 70.7 -19.1 1,261.8
Trade receivables,
31 December 2022
746.5 224.0 61.4 33.4 63.2 -16.6 1,112.0
DKK million
Not
overdue
0-30
days
30-60
days
60- 90
days
>90
days
Provi-
sion Total
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
13
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
CASHFLOWANDOTHERSIGNIFICANT
FINANCIALPOSITIONS
CONTINUED
Work in progress
At 31 December 2023, Netcompany’s work
in progress amounted to DKK 702.6m, rep-
resented by contract work in progress of
DKK 1,263.9m and prepayments received
from customers of DKK 561.3m.
Combined work in progress increased by
3.2% from DKK 681m in Q4 2022 to DKK
702.6m in Q4 2023. In the same period rev-
enue increased by 4.2% from DKK 1,519.3m
in Q4 2022 to DKK 1,582.6m in Q4 2023,
while revenue for the last twelve months
increased by 9.6%.
As a percentage of revenue, the combined
work in progress, prebilled invoices, and
trade receivables was 32.3%, which was on
level with 2022, despite a different revenue
mix. In 2023, a larger part of revenue came
from projects under the RRF programme,
which are collected later in the project than
private projects in the Danish business unit
are.
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 2,854m and an additional
facility of DKK 2,000m, available only for
new acquisitions. At 31 December 2023,
DKK 1,643m of the committed lines were
utilised on ordinary borrowings, DKK 37.5m
on guarantees and DKK 106.5m utilised for
acquisitions, leaving a total of DKK 3,076m
available in unutilised funding of which DKK
1,182.5m can be utilised for normal opera-
tions if needed with no additional costs or
covenants.
In addition, Netcompany-Intrasoft had uti-
lised DKK 489.7m on local guarantees, hav-
ing no impact on the Group facilities except
for leverage.
Including net cash balance as of 31 Decem-
ber 2023 of DKK 448.1m available Group
funding was DKK 1,630.6m.
Risk management
Please refer to the overview of risk factors
provided by the Group in the Annual Report
for 2023.
Capital structure
The debt ratio based on adjusted EBITDA
remained unchanged at 1.4x when compar-
ing end of 2022 to end of 2023, which is
fully compliant with current covenants.
In 2024, we will initiate share buyback pro-
grammes of at least DKK 500m to reach
our mid-term target of DKK 2bn in total
cash redistributing by the end of 2026. The
first tranche of DKK 150m will be initiated
after the release of the Annual Report for
2023, and completed before reporting Q1
2024 results in May 2024.
Events after the balance sheet date
For events after the balance sheet date
please read note 13.
+.%
+.%
+.%
.
,.
Work in progress overview (DK million)
,
,
Dec.
Q
Q
LT M
,.
WIP
REVENUE
.
Dec.
,.
Q
Q
LT M
,.
,
,
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
14
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Financial performance against original
guidance
Entering 2023, we highlighted the potential
spillover effects from the uncertain macro-
and geopolitical environments on our finan-
cial performance. Unfortunately, those risks
prevailed and impacted our revenue and
margin for the year.
Group revenue grew 10.7% - well within our
original guidance of 8%-12% revenue growth
for the year and slightly better than the nar-
rowed guidance of 8%-10% revenue growth,
which was communicated in connection
with our Q3 2023 report. The growth was
driven by strong performance in the inter-
national part of the Group. Offsetting some
of that growth was the performance in the
Danish operation that ended up realising
revenue in line with 2022, caused by the
negative impact from macro- and geopolit-
ical environments, particular in the Danish
private segment.
The changed revenue mix – with more
growth from the international part of the
Group and no growth from the Danish part
of the Group – had a negative impact on
margins as higher margin revenue was
substituted with lower margin revenue. In
addition, the ongoing right-sizing of the em-
ployee pyramid structure in Denmark, the
costs related to the enhanced Go-To-Market
approach and the move into new headquar-
ters in both Denmark and Greece diluted the
margin further in the Group. Finally, the Dan-
ish and Norwegian operation realised lower
than anticipated utilisation ratios which also
had a negative impact on margins.
As a result, adjusted EBITDA margin in
constant currencies ended at 14.9% - in
line with the original guided range of 15% to
18% and the narrowed guidance towards
the lower end of the guided range, given in
connection with the Q3 2023 report. Provi-
sion for severance payment realised in Q4
2023 amounted to DKK 14.2m and impacted
margin negatively by 0.2 percentage points.
EBITDA margin before severance payments
was consequently 15.1%.
Guidance for 2024
Our financial guidance for the Group for
2024 is based on an assumption that macro
and geopolitical uncertainty to some extent
continues. However, we do not expect that
uncertainty will continue to pause deci-
sion processes in the private segment in
Denmark as experienced in 2023. We also
expect a higher level of activity in the public
sector in Denmark in 2024, driven by legisla-
tive changes and new tenders.
For Netcompany-Intrasoft we do not expect
the same level of revenue growth in 2024 as
realised in 2023, as most of the growth in
the previous year was driven by a significant
ramp up in projects under the Recovery and
Resilience Facility in Greece. While these are
expected to be at a continued high level in
2024, they are not expected to drive signifi-
cant revenue growth.
As communicated during 2023, the projects
under the DALAS framework in the UK are
expected to be yielding revenue from the
end of June and onwards. Revenue growth
in the UK will thus be back-end loaded in
2024.
Guidance 2024
Actual Updated Original
Target performance target Target
Financial metrics in constant currencies
2024 2023 Q3 2022 2023
Group revenue growth, organic
7-10% 10.7% 8-10% 8-12%
Group adjusted EBITDA margin
15-18% 14.9%
lower end of
15-18%
15-18%
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
15
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Consequently, we expect adjusted EBITDA
margin of between 15% and 18% in 2024.
Midterm financial targets
Our midterm financial targets to be reached
by the end of 2026 with revenue of at least
DKK 8.5bn and adjusted EBITDA margin
of more than 20% are maintained. The tar-
get to redistribute DKK 2bn to sharehold-
ers – mainly as share buybacks – is also
maintained. Hence, we expect to buy back
shares for at least DKK 500m in 2024 of
which the first tranche of DKK 150m will be
initiated after the release of the Annual Re-
port for 2023 and completed before report-
ing the Q1 2024 results in May 2024.
For Norway and the Netherlands revenue
growth is expected to build up gradually
during the year with some acceleration to
be expected during Q1 2024 in Norway fol-
lowing the win of the Avinor contract.
The proportion of license revenue as a per-
centage of total revenue is expected to be
at around the same level in 2024 as realised
in 2023.
Based on these assumptions we expect rev-
enue to grow between 7% and 10% in 2024.
During 2023, a number of activities related
to right-sizing of the pyramid structure in
particular in Denmark was carried out and
to a large extent completed. Combined with
an expected higher level of activity and
more projects being initiated, this is likely to
impact margins positively. In addition, the
increase in costs related to the enhanced
Go-To-Market initiatives incurred in 2023 will
be at similar absolute level in 2024 and thus
not have a dilute impact on margins in 2024.
The costs related to moving into new head-
quarters in 2023 in Copenhagen and Athens
will not have a negative impact on margins
in 2024 as they had in 2023.
FY
Organic revenue growth towards 2026
Operating entity
Annual Growth
2024-2026
Denmark 7-12%
Intrasoft 5-10%
United Kingdom 10-30%
Norway 20-30%
Netherlands 20-30%
Adjusted EBITDA margin guidance midterm 2026
Flatlining of HQ and Go-To-Market
costs
Margin improvements in Intrasoft
Non-recurring impacts related to
right-sizing of the pyramid
Positive earnings in Norway and Neth-
erlands
Increasing utilisation in Denmark
Midterm target
%
>.%
>.%
>.%
>.%
>.%
>%
GUIDANCE2024
CONTINUED
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
16
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Financial Calendar
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
429,144 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 and matching shares
In total, 322,421 restricted stock units
(RSUs) and 37,920 (nil) matching shares
in relation to the share-based incentive
schemes were issued at 31 December
2023, of which 87,577 were granted to the
Executive Management and 272,764 were
granted to Other Key Management Person-
nel and Other employees.
The fair value of the RSUs at grant was
DKK 122.1m (DKK 98.3m). The cost relat-
ed hereto is expensed over the vesting
period. A total amount of DKK 42.6m (DKK
24.9m) was recognised as staff costs in the
income statement in 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 2023.
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 realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
17
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
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 31 December 2023. The
Q4 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 2023.
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
position as at 31 December 2023 and of the
results of the Group’s operations and cash
flows for the period 1 January 2023 to 31
December 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,25JANUARY2024
Executive Management
André Rogaczewski
CEO
Åsa Riisberg
Claus Jørgensen
COO
Bart Walterus
Thomas Johansen
CFO
Statement of the Board of Directors
and Executive Management
Susan Helen CooklinBo Rygaard
Chair of the Board
Juha Christensen
Vice Chair of the Board
Board of Directors
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
18
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Consolidated interim
financial statements
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
19
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Income statement and Statement
of comprehensive income
DKK million
Note Q4 2023 Q4 2022 YTD 2023 YTD 2022
Income statement
Revenue 1 1,582.6 1,519.3 6,078.4 5,544.6
Cost of services 2 -1,125.0 -999.3 -4,375.5 -3,772.2
Gross profit 457.7 520.0 1,703.0 1,772.5
Sales and marketing costs -16.1 -12.1 -54.7 -41.0
Administrative costs 3 -244.9 -198.8 -935.5 -763.9
Special items -0.5 0.0 -0.5 0.0
Other operating income / expense -0.6 6.3 -0.0 5.9
EBITA 195.7 315.4 712.2 973.5
Amortisation -29.7 -33.8 -134.2 -134.1
Operating profit (EBIT) 165.9 281.6 578.0 839.4
Financial income 6.3 11.5 25.2 30.3
Financial expenses -44.5 -42.0 -163.3 -108.1
Income / loss, joint venture / associates -0.9 5.2 -7.7 -5.1
Profit / loss before tax 126.9 256.4 432.3 756.5
Tax on the profit for the period -61.3 -41.0 -128.2 -153.8
Net profit / loss for the period 65.6 215.4 304.0 602.8
Of which
Non-controlling interest
Netcompany Group A/S' share 65.2 215.6 303.5 603.4
Earnings per share
Earnings per share (DKK) 1.32 4.39 6.13 12.26
Diluted Earnings per share (DKK) 1.31 4.34 6.09 12.15
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
20
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
DKK million
Note Q4 2023 Q4 2022 YTD 2023 YTD 2022
CONTINUED
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 3.3 -3.7 6.7 -8.0
Other comprehensive income items that may not be reclassified to profit or
loss:
Actuarial profit / loss on defined benefit plans 1.1 0.4 1.1 0.4
Other comprehensive income, net of tax 4.3 -3.3 7.8 -7.6
Of which
Non-controlling interest -0.2 -0.5 -0.2 0.2
Netcompany Group A/S' share 4.6 -2.8 7.9 -7.8
Total comprehensive income 69.9 212.1 311.8 595.1
Of which
Non-controlling interest 0.1 -0.7 0.4 -0.4
Netcompany Group A/S' share 69.8 212.8 311.4 595.6
INCOMESTATEMENTANDSTATEMENT
OFCOMPREHENSIVEINCOME
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
21
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Statement of financial position
31 December 31 December
DKK million Note 2023 2022
Assets
Intangible assets 3,733.1 3,879.9
Tangible assets 946.9 332.2
Investment in joint venture 89.5 97.4
Investment in associates 114.6 8.0
Other securities and investments 1.1 1.3
Other receivables 54.5 54.9
Deferred tax assets 41.8 32.7
Total non-current assets 4,981.4 4,406.4
Trade receivables 6 1,261.8 1,112.0
Receivables from joint venture 8.1 10.0
Receivables from associates 12.7 16.4
Contract work in progress 7 1,263.9 1,114.5
Other receivables 61.9 38.3
Prepayments 122.0 124.4
Tax receivables 0.0 36.0
Total receivables 2,730.3 2,451.5
Cash 448.1 336.0
Total current assets 3,178.4 2,787.5
Total assets 8,159.8 7,193.9
31 December 31 December
DKK million
Note
2023 2022
Equity and liabilities
Share capital 50.0 50.0
Treasury shares -193.1 -313.3
Other reserves 1.5 0.4
Retained earnings
Equity attributable to Netcompany Group A/S 3,823.5 3,520.7
Non-controlling interest 6.5 6.2
Total equity 3,830.1 3,526.9
Borrowings 1,586.9 1,872.4
Leasing liabilities 761.8 180.5
Pension obligations 19.0 13.8
Deferred tax liability 69.0 111.0
Total non-current liabilities 2,436.7 2,177.6
Borrowings 146.9 47.3
Leasing liabilities 114.7 85.4
Pension obligations 1.7 5.8
Prebilled invoices 7 561.3 433.5
Trade payables 340.0 265.2
Other payables 8 670.9 640.6
Provisions 16.7 11.6
Income tax payable 40.9 0.0
Total current liabilities 1,893.1 1,489.4
Total liabilities 4,329.8 3,667.0
Total equity and liabilities 8,159.8 7,193.9
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
22
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Cash flow statement
DKK million Q4 2023 Q4 2022 YTD 2023 YTD 2022
Operating profit (EBIT) 165.9 281.6 578.0 839.4
Depreciation and amortisation 77.1 73.6 322.7 272.7
Non-cash items 9.8 5.8 44.2 14.4
Working capital changes 245.9 165.9 26.7 -59.3
Total 498.8 526.9 971.6 1,067.1
Income taxes paid -33.3 -96.5 -103.3 -234.1
Financial income received 2.3 1.8 7.6 7.3
Financial expenses paid -36.3 -34.2 -117.3 -67.3
Cash flow from operating activities 431.4 398.0 758.6 773.0
Net cash outflow on acquisition of subsidiaries 0.0 -50.0 0.0 -50.0
Other investments 0.1 0.2 -105.7 4.4
Capitalisation of intangible assets -23.2 -23.8 -107.9 -98.0
Acquisition of intangible assets 0.0 -20.0 0.0 -20.0
Acquisition of fixed assets -25.6 -30.8 -98.5 -52.2
Disposals of fixed assets 4.9 0.5 4.9 0.5
Other receivables (deposits) 0.0 -6.3 4.5 -28.9
Cash flow from investment activities -43.8 -130.2 -302.8 -244.3
Payment of treasury shares -0.3 -30.5 -32.0 -131.5
Proceeds from borrowings 0.0 0.0 127.5 2,182.8
Repayment of borrowings -9.5 -105.4 -314.3 -2,610.0
Repayment of right of use assets -30.4 -20.1 -124.5 -87.3
Cash flow from financing activities -40.2 -156.0 -343.4 -646.0
Net increase in cash and cash equivalents 347.4 111.8 112.4 -117.3
Cash and cash equivalents at the beginning 100.5 223.6 336.0 458.8
Effect of exchange rate changes on the balance cash held in foreign currencies 0.1 0.6 -0.4 -5.4
Cash and cash equivalents at the end 448.1 336.0 448.1 336.0
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
23
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
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 October 2023 50.0 -195.5 61.2 1.7 0.4 3,828.5 3,746.5 6.4 3,752.9
Profit for the period 0.0 0.0 0.0 0.0 0.0 65.2 65.2 0.4 65.6
Other comprehensive income 0.0 0.0 0.0 3.5 1.1 0.0 4.6 -0.2 4.3
Total comprehensive income 0.0 0.0 0.0 3.5 1.1 65.2 69.8 0.1 69.9
Share-based remuneration for the period 0.0 2.4 5.9 0.0 0.0 -1.0 7.3 0.0 7.3
Total transactions with owners 0.0 2.4 5.9 0.0 0.0 -1.0 7.3 0.0 7.3
Equity at 31 December 2023 50.0 -193.1 67.2 5.2 1.5 3,892.7 3,823.5 6.5 3,830.1
Equity at 1 January 2023
Adjustment related to previous year* 0.0 0.0 118.4 0.0 0.0 -120.4 -2.1 0.0 -2.1
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 0.0 303.5 303.5 0.5 304.0
Other comprehensive income 0.0 0.0 0.0 6.9 1.1 0.0 7.9 -0.2 7.8
Total comprehensive income 0.0 0.0 0.0 6.9 1.1 303.5 311.4 0.4 311.8
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 0.0 133.0 -105.4 0.0 0.0 -2.5 25.0 0.0 25.0
Total transactions with owners 0.0 120.2 -105.4 0.0 0.0 -21.3 -6.5 0.0 -6.5
Equity at 31 December 2023 50.0 -193.1 67.2 5.2 1.5 3,892.7 3,823.5 6.5 3,830.1
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
24
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
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 October 2022 50.0 -302.9 54.3 1.6 -0.0 3,535.2 3,338.2 6.8 3,345.1
Profit for the period 0.0 0.0 0.0 0.0 0.0 215.6 215.6 -0.2 215.4
Other comprehensive income 0.0 0.0 0.0 -3.2 0.4 0.0 -2.8 -0.5 -3.3
Total comprehensive income 0.0 0.0 0.0 -3.2 0.4 215.6 212.8 -0.7 212.1
Treasury Shares for the period 0.0 -10.5 0.0 0.0 0.0 -20.0 -30.5 0.0 -30.5
Share-based remuneration for the period 0.0 0.1 -0.1 0.0 0.0 0.1 0.1 0.0 0.1
Total transactions with owners 0.0 -10.4 -0.1 0.0 0.0 -19.9 -30.4 0.0 -30.4
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
STATEMENTOFCHANGESINEQUITYCONTINUED
Equity at 1 January 2022
Profit for the period 0.0 0.0 0.0 0.0 0.0 603.4 603.4 -0.6 602.8
Other comprehensive income 0.0 0.0 0.0 -8.2 0.4 0.0 -7.8 0.2 -7.6
Total comprehensive income 0.0 0.0 0.0 -8.2 0.4 603.4 595.6 -0.4 595.1
Treasury Shares for the period 0.0 -111.3 0.0 0.0 0.0 -19.6 -130.9 0.0 -130.9
Share-based remuneration for the period 0.0 39.4 -16.0 0.0 0.0 1.4 24.9 0.0 24.9
Movement of non-controlling interest 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -0.2 -0.2
Total transactions with owners 0.0 -71.9 -16.0 0.0 0.0 -18.2 -106.0 -0.2 -106.3
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
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
25
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Segment information
Public Q4
Group Denmark Intrasoft UK Norway Netherlands
DKK million Q4 2023 Q4 2022 % change Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022
Revenue 1,070.9 998.1 7.3% 442.5 451.2 424.0 373.2 107.6 92.1 51.6 51.7 45.2 29.9
Cost of service -779.1 -679.3 14.7% -282.9 -262.0 -344.8 -288.7 -84.2 -66.8 -35.6 -38.7 -31.5 -23.1
Gross profit 291.8 318.8
-8.5%
159.6 189.2 79.2 84.5 23.3 25.3 16.0 13.0 13.7 6.8
Gross profit margin
27.3% 31.9% -4.7pp 36.1% 41.9% 18.7% 22.6% 21.7% 27.5% 31.1% 25.2% 30.2% 22.9%
Allocated costs -169.9 -141.8 19.8% -87.4 -72.2 -49.6 -36.2 -15.8 -14.3 -7.9 -9.8 -9.2 -9.3
Adjusted EBITA before HQ costs 122.0 177.0
-31.1%
72.2 117.0 29.6 48.3 7.6 10.9 8.1 3.2 4.5 -2.4
Adjusted EBITA margin before allo-
cated cost from HQ
11.4% 17.7% -6.3pp 16.3% 25.9% 7.0 % 12.9% 7.0% 11.9% 15.7% 6.2% 9.9% -8.1%
Allocated costs from HQ -3.0 0.5 -692.2% -2.0 0.3 0.0 0.0 -0.5 0.1 -0.2 0.0 -0.2 0.1
Special items -0.3 0.0 N/A -0.2 -0.0 0.0 0.0 -0.0 0.0 -0.0 -0.0 -0.0 -0.0
EBITA 118.7 177.5
-33.2%
69.9 117.4 29.6 48.3 7.0 11.0 7.8 3.2 4.2 -2.4
EBITA margin
11.1% 17.8% -6.7pp 15.8% 26.0% 7.0 % 12.9% 6.5% 12.0% 15.2% 6.2% 9.4% -8.0%
Amortisation -20.1 -21.9 -8.4% -6.7 -10.7 -10.0 -6.7 -1.7 -2.3 -0.8 -1.2 -0.8 -1.0
Operating profit 98.6 155.6
-36.6%
63.2 106.7 19.6 41.5 5.3 8.7 7.1 2.0 3.4 -3.4
Operating profit margin
9.2% 15.6% -6.4pp 14.3% 23.6% 4.6% 11.1% 4.9% 9.5% 13.7% 3.9% 7.5% -11.3%
NOTE1
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
26
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Segment information
Private Q4
Group Denmark Intrasoft UK Norway Netherlands
DKK million Q4 2023 Q4 2022 % change Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022
Revenue 511.7 521.3 -1.8% 289.5 308.1 138.4 137.3 43.8 40.3 39.9 34.9 0.2 0.6
Cost of service -345.9 -320.0 8.1% -168.2 -162.4 -109.0 -105.3 -31.7 -24.2 -36.9 -27.9 - 0.1 -0.3
Gross profit 165.8 201.2
-17.6%
121.3 145.7 29.4 31.9 12.1 16.2 3.0 7.0 0.0 0.3
Gross profit margin
32.4% 38.6% -6.2pp 41.9% 47.3% 21.2% 23.3% 27.7 % 40.1% 7.5% 20.1% 22.3% 54.1%
Allocated costs -86.5 -69.9 23.8% -53.1 -45.4 -19.5 -11.7 -6.4 -5.7 -7.5 -6.8 -0.0 -0.1
Adjusted EBITA before HQ costs 79.3 131.4
-39.6%
68.2 100.3 9.9 20.2 5.7 10.4 -4.5 0.2 0.0 0.2
Adjusted EBITA margin before allo-
cated cost from HQ
15.5% 25.2% -9.7pp 23.6% 32.6% 7.1% 14.7% 13.0% 25.9% -11.2% 0.5% 11.1% 38.9%
Allocated costs from HQ -1.5 0.2 -753.3% -1.1 0.2 0.0 0.0 -0.2 0.0 -0.2 0.0 -0.0 0.0
Special items -0.2 -0.0 N/A -0.1 -0.0 0.0 0.0 -0.0 -0.0 -0.0 -0.0 -0.0 -0.0
Other operating income / expense -0.6 6.3 -109.7% 0.0 0.0 -0.6 6.3 0.0 0.0 0.0 0.0 0.0 0.0
EBITA 77.0 137.9
-44.2%
67.0 100.5 9.2 26.5 5.5 10.5 -4.7 0.2 0.0 0.2
EBITA margin
15.0% 26.5% -11.4pp 23.1% 32.6% 6.7% 19.3% 12.5% 25.9% -11.8% 0.6% 11.0% 38.9%
Amortisation -9.7 -11.9 -19.2% -5.8 -8.2 -2.5 -2.0 -0.7 -0.9 -0.7 -0.8 -0.0 -0.0
Operating profit 67.3 126.0
-46.5%
61.2 92.3 6.8 24.5 4.8 9.5 -5.4 -0.6 0.0 0.2
Operating profit margin 13.2% 24.2% -11.0pp 21.1% 30.0% 4.9% 17.9% 10.9% 23.7% -13.6% -1.8% 9.9% 37.3%
CONTINUED
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
27
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Segment information
Public 12 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 4,108.5 3,594.9 14.3% 1,756.8 1,674.5 1,549.9 1,271.1 475.8 373.5 178.0 175.1 148.0 100.7
Cost of service -3,014.7 -2,561.0 17.7% -1,153.6 -1,035.8 -1,245.1 -1,015.9 -361.9 -275.7 -137.7 -149.1 -116.4 -84.4
Gross profit 1,093.8 1,033.9
5.8%
603.2 638.7 304.8 255.2 113.9 97.8 40.3 26.0 31.6 16.3
Gross profit margin 26.6% 28.8% -2.1pp 34.3% 38.1% 19.7% 20.1% 23.9% 26.2% 22.6% 14.8% 21.4% 16.2%
Allocated costs -629.5 -513.3 22.6% -322.8 -250.3 -175.9 -137.6 -65.1 -53.7 -31.9 -38.3 -33.9 -33.4
Adjusted EBITA before HQ costs 464.3 520.6
-10.8%
280.4 388.4 128.9 117.5 48.8 44.2 8.4 -12.3 -2.3 -17.1
Adjusted EBITA margin before allo-
cated cost from HQ
11.3% 14.5% -3.2pp 16.0% 23.2% 8.3% 9.2% 10.3% 11.8% 4.7% -7.0% -1.5% -17.0%
Allocated costs from HQ -27.9 -23.7 17.7% -18.7 -16.2 0.0 0.0 -5.3 -4.2 -1.9 -2.0 -2.0 -1.4
Special items -0.3 0.0 N/A -0.2 0.0 0.0 0.0 -0.0 0.0 -0.0 0.0 -0.0 0.0
EBITA 436.1 496.9
-12.2%
261.5 372.2 128.9 117.5 43.4 39.9 6.5 -14.3 -4.2 -18.5
EBITA margin
10.6% 13.8% -3.2pp 14.9% 22.2% 8.3% 9.2% 9.1% 10.7% 3.6% -8.1% -2.9% -18.4%
Amortisation -88.5 -87.0 1.7% -35.8 -45.1 -35.0 -21.3 -10.1 -11.2 -3.7 -5.3 -3.9 -4.0
Operating profit 347.6 409.9
-15.2%
225.7 327.1 93.9 96.2 33.3 28.7 2.8 -19.6 -8.1 -22.5
Operating profit margin 8.5% 11.4% -2.9pp 12.8% 19.5% 6.1% 7. 6 % 7.0 % 7.7 % 1.6% -11.2% -5.5% -22.3%
CONTINUED
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
28
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Segment information
Private 12 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 1,969.9 1,949.7 1.0% 1,115.2 1,202.7 536.0 461.6 170.4 166.5 147.5 117.0 0.8 2.0
Cost of service -1,360.8 -1,211.2 12.3% -668.0 -633.5 -425.9 -366.0 -122.6 -108.7 -143.6 -101.4 -0.7 -1.5
Gross profit 609.2 738.5
-17.5%
447.2 569.2 110.1 95.5 47.8 57.8 3.9 15.6 0.1 0.5
Gross profit margin 30.9% 37.9% -7.0pp 40.1% 47.3% 20.5% 20.7% 28.1% 34.7% 2.6% 13.3% 16.7% 24.0%
Allocated costs -317.7 -254.2 25.0% -197.6 -164.1 -65.6 -45.9 -23.6 -20.5 -30.8 -23.2 -0.1 -0.5
Adjusted EBITA before HQ costs 291.5 484.3
-39.8%
249.6 405.0 44.5 49.6 24.2 37.3 -26.9 -7.7 0.0 0.0
Adjusted EBITA margin before allo-
cated cost from HQ
14.8% 24.8% -10.0pp 22.4% 33.7% 8.3% 10.7% 14.2% 22.4% -18.2% -6.5% 1.3% 0.3%
Allocated costs from HQ -15.1 -13.6 11.3% -11.4 -10.9 0.0 0.0 -1.9 -1.6 -1.8 -1.1 -0.0 -0.0
Special items -0.2 0.0 N/A -0.1 0.0 0.0 0.0 -0.0 0.0 -0.0 0.0 -0.0 0.0
Other operating income / expense -0.0 5.9 -100.1% 0.0 0.0 -0.0 5.9 0.0 0.0 0.0 0.0 0.0 0.0
EBITA 276.2 476.6
-42.1%
238.1 394.2 44.5 55.5 22.3 35.7 -28.7 -8.8 0.0 -0.0
EBITA margin 14.0% 24.4% -10.4pp 21.4% 32.8% 8.3% 12.0% 13.1% 21.4% -19.4% -7.5% 0.4% -0.9%
Amortisation -45.8 -47.1 -2.9% -28.7 -32.2 -9.8 -7.3 -3.6 -4.3 -3.5 -3.2 -0.0 -0.1
Operating profit 230.4 429.5
-46.4%
209.4 361.9 34.7 48.2 18.6 31.3 -32.2 -11.9 -0.0 -0.1
Operating profit margin 11.7% 22.0% -10.3pp 18.8% 30.1% 6.5% 10.4% 10.9% 18.8% -21.8% -10.2% -1.4% -3.8%
CONTINUED
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
29
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Segment information
Geographical
Segment information related to geographical areas
Q4 2023
DKK million Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 732.8 218.4 155.5 211.9 94.1 25.6 61.6 82.7 1,582.6
Q4 2022
DKK million Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 775.8 191.8 135.7 112.3 87.0 84.6 34.0 98.1 1,519.3
YTD 2023
DKK million Denmark Greece UK Belgium Norway Luxembourg Netherlands Other Total
Revenue from external customers 2,903.1 777.3 668.8 706.6 331.4 226.1 179.8 285.4 6,078.4
YTD 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
CONTINUED
Geographical Full year
Segment information related to geographical areas
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
30
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Administrative costs
Cost of services
NOTE2
NOTE3
DKK million Q4 2023 Q4 2022 YTD 2023 YTD 2022
Cost of services -320.9 -293.4 -1,163.6 -983.2
Salaries -799.6 -699.6 -3,193.6 -2,764.9
Depreciation -4.4 -6.2 -18.2 -24.1
Cost of services total -1,125.0 -999.3 -4,375.5 -3,772.2
DKK million Q4 2023 Q4 2022 YTD 2023 YTD 2022
Administrative costs -120.6 -102.1 -425.9 -369.4
Salaries -81.4 -63.2 -339.5 -280.0
Depreciation -42.9 -33.5 -170.2 -114.5
Administrative costs total -244.9 -198.8 -935.5 -763.9
Financial income and expenses
NOTE4
DKK million Q4 2023 Q4 2022 YTD 2023 YTD 2022
Financial Income
Exchange rate adjustments 4.8 10.7 21.9 27.3
Other financial income 1.5 0.8 3.4 3.0
Financial income total 6.3 11.5 25.2 30.3
Financial expenses
Interest expense, bank loan -25.9 -18.5 -88.5 -41.8
Interest expense, leasing -10.0 -2.6 -25.3 -7.1
Exchange rate adjustments -2.9 -10.6 -30.7 -34.7
Other financial expenses -5.7 -2.4 -18.7 -16.6
Fair value adj. of contingent consideration 0.0 -7.9 0.0 -7.9
Financial expenses total -44.5 -42.0 -163.3 -108.1
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
31
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Earnings per share
NOTE5
DKK million Q4 2023 Q4 2022 YTD 2023 YTD 2022
Earnings per share - EPS (DKK) 1.32 4.39 6.13 12.26
Diluted earnings per share - EPS-D (DKK) 1.31 4.34 6.09 12.15
Profit 65.2 215.6 303.5 603.4
Average number of shares 50.0 50.0 50.0 50.0
Average number of treasury shares 0.4 0.9 0.5 0.8
Average number of shares in circulation 49.6 49.1 49.5 49.2
Average number of outstanding restricted stock units 0.3 0.5 0.3 0.5
Average number of diluted shares in circulation 49.8 49.6 49.8 49.7
The Group is continuously conducting
individual assessments of bad debt.
If this leads to an assessment that the
Group will not be able to collect the amount
accounted for an allowance for bad debt
is made. At 31 December 2022, the Group
recognised a provision for expected credit
losses of DKK 19.1m (DKK 16.9m). In 2023,
the Group realised a credit loss of DKK
2.9m (DKK 0.7m).
The credit quality of trade receivables
at 31 December 2023 is considered
satisfactory.
Trade receivables
NOTE6
31 December 31 December
DKK million 2023 2022
Not overdue 826.2 746.5
0-30 days overdue 302.9 224.0
31-60 days overdue 67.8 61.4
61-90 days overdue 13.4 33.4
Over 90 days overdue 70.7 63.2
Total trade receivables excl. expected credit loss 1,280.9 1,128.5
Expected credit loss -19.1 -16.6
Total trade receivables 1,261.8 1,112.0
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
32
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Contract work in progress
NOTE7
31 December 31 December
DKK million 2023 2022
Selling price of work performed on fixed price projects 3,950.7 3,811.9
Invoiced amount on fixed price projects -3,248.0 -3,130.9
Total contract work in progress 702.6 681.0
Net value – stated on a contract-per-contract basis – is presented in the statement of
financial position as follows:
Contract work in progress 1,263.9 1,114.5
Prebilled invoices -561.3 -433.5
Total contract work in progress 702.6 681.0
Based on the current project portfolio in-
cluding monitoring of deliveries on projects,
the Group has recognised a provision of
DKK 16.7m, covering legal claims and pro-
ject related risk (DKK 4.8m).
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
31 December 31 December
DKK million
2023 2022
Wages and salaries, payroll taxes, social security costs, etc. payable 131.2 87.4
Holiday pay obligation 112.2 97.0
VAT and duties 129.7 111.0
Contingent purchase price & earn out 0.0 101.3
Holdback 10.2 10.2
Other costs payable 287.6 233.7
Total other payables 670.9 640.6
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
33
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
Income Statement classified by function
DKK million Q4 2023 Q4 2022 YTD 2023 YTD 2022
Income statement
Revenue 1,582.6 1,519.3 6,078.4 5,544.6
Cost of services, incl. depreciation and amortisation -1,139.3 -1,009.5 -4,427.2 -3,803.3
Gross profit 443.3 509.8 1,651.2 1,741.3
Sales and marketing costs, incl. depreciation and amortisation -16.1 -12.1 -54.7 -41.0
Administrative costs, incl. depreciation and amortisation -260.7 -222.5 -1,018.5 -866.8
Other operating income / expense -0.6 6.3 -0.0 5.9
Operating profit (EBIT) 165.9 281.6 578.0 839.4
Financial income 6.3 11.5 25.2 30.3
Financial expenses -44.5 -42.0 -163.3 -108.1
Income / loss from joint venture / associates -0.9 5.2 -7.7 -5.1
Profit / loss before tax 126.9 256.4 432.3 756.5
Tax on the profit for the period
-61.3 -41.0 -128.2 -153.8
Net profit / loss for the period
65.6 215.4 304.0 602.8
Depreciation and Amortisation have been presented as follows in the in-
come statement:
Cost of services -18.7 -16.4 -70.0 -55.3
Administrative costs -58.3 -57.2 -252.7 -217.4
Depreciation and amortisation -77.1 -73.6 -322.7 -272.7
NOTE9
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
34
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
As part of its contract commitments with
customers, the Group has through its banks
provided performance guarantees of DKK
527.1m (DKK 491m).
There are no collaterals provided for
the Group’s bank loan.
In Q4 2023, Netcompany recognised
revenue from Smarter Airports A/S of DKK
10m (DKK 12.7m).
The Group is in 2023 as well as in 2022 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
NOTE10
NOTE11
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
2023 financial report have been prepared in
accordance with IAS 34 “Interim Financial
There are no collaterals provided for
the Group’s bank loan.
Reporting” as adopted by the European
Union. The accounting policies applied are
consistent with those applied in the con-
solidated Annual Report for the year ended
31 December 2023 for Netcompany Group
A/S.
Accounting policies
NOTE12
After the balance sheet date, the Danish
Data Protection Authority has concluded
it´s analysis of the data breach that oc-
curred in March 2022 related to the launch
of the new digital mailbox – mit.dk. At that
point it was estimated that between 10 and
50 citizens potentially could be affected by
the breach. Netcompany handled the issue
instantly then and reported the matter to
the Danish Data Protection Authority as re-
quired. The Danish Data Protection Agency
recommends that Netcompany be fined
and that the fine should be at least DKK
15m. Unlike in other countries within EU, the
Data Protection Authority in Denmark do
not have the mandate to issue fines – this
is a matter for the legal juridical system and
the case will be handed over to the Danish
Prosecution Authority who will evaluate
the investigations to be carried out now by
the police and decide if the case should be
taken to court. If the case is taken to court,
the court can issue a fine. It is not expected
that the matter will be resolved in the near
future, as similar matters have been in pro-
cess for 2-3 years.
No further events have occurred after the
balance sheet date, which would influence
the evaluation of this Annual Report.
Events after balance
sheet date
NOTE13
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
35
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
% change % change
DKK million Q4 2023 Q4 2022 Q4 YTD 2023 YTD 2022 YTD
Income statement
Public revenue 1,070.9 998.1 7.3% 4,108.5 3,594.9 14.3%
Private revenue 511.7 521.3 -1.8% 1,969.9 1,949.7 1.0%
Development revenue 469.3 723.7 -35.2% 2,047.8 2,640.2 -22.4%
Maintenance revenue 1,091.4 779.7 40.0% 3,968.2 2,876.1 38.0%
License revenue 22.0 15.9 38.6% 62.4 28.3 120.4%
Organic revenue 1,582.6 1,369.7 4.2% 6,078.4 4,172.8 9.6%
Non-organic revenue 0.0 149.6 -100.0% 0.0 1,371.9 -100.0%
Revenue by growth, total 1,582.6 1,519.3
4.2%
6,078.4 5,544.6
9.6%
Special items -0.5 0.0 N/A -0.5 0.0 N/A
Adjusted EBITDA 244.1 348.9 -30.0% 901.2 1,106.2 -18.5%
EBITDA 243.0 355.2 -31.6% 900.7 1,112.1 -19.0%
Adjusted EBITA 196.7 309.1 -36.4% 712.7 967.6 -26.3%
EBITA 195.7 315.4 -38.0% 712.2 973.5 -26.8%
Operating profit (EBIT) 165.9 281.6 -41.1% 578.0 839.4 -31.1%
Net financials -38.2 -30.5 25.4% -138.0 -77.8 77.5%
Net profit / loss 65.6 215.4 -69.6% 304.0 602.8 -49.6%
Financial position
Capex -48.8 -74.6 -34.6% -206.5 -170.3 21.3%
Total assets 8,159.8 7,193.9 13.4% 8,159.8 7,193.9 13.4%
Equity 3,830.1 3,526.9 8.6% 3,830.1 3,526.9 8.6%
Net increase in cash and cash equivalents 347.4 111.8 210.8% 112.4 -117.3 -195.8%
Free cash flow 382.6 323.4 18.3% 552.1 602.7 -8.4%
Free cash flow (tax normalised) 343.4 361.4 -5.0% 496.4 642.6 -22.8%
Financial figures and highlights Comparative
NOTE14
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
36
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
FINANCIALHIGHLIGHTSANDKEYFIGURESCOMPARATIVECONTINUED
Earnings per share
Earnings per share (DKK) 1.32 4.39 -70.0% 6.13 12.26 -50.0%
Diluted earnings per share (DKK) 1.31 4.34 -69.9% 6.09 12.15 -49.8%
Employees
Average number of full-time employees 7,765 7,353 5.6% 7,684 6,906 11.3%
Financial ratios
Revenue growth 4.2% 31.9% -27.7pp 9.6% 52.7% -43.0pp
Gross profit margin 28.9% 34.2% -5.3pp 28.0% 32.0% -4.0pp
Adjusted EBITDA margin 15.4% 23.0% -7.5pp 14.8% 20.0% -5.1pp
EBITDA margin 15.4% 23.4% -8.0pp 14.8% 20.1% -5.2pp
Adjusted EBITA margin 12.4% 20.3% -7.9pp 11.7% 17.5% -5.7pp
EBITA margin 12.4% 20.8% -8.4pp 11.7% 17.6% -5.8pp
Operating profit margin 10.5% 18.5% -8.0pp 9.5% 15.1% -5.6pp
Effective tax rate 48.3% 16.0% 32.3pp 29.7% 20.3% 9.3pp
Return on equity 1.8% 6.6% -4.8pp 8.3% 18.4% -10.1pp
Solvency ratio 46.9% 49.0% -2.1pp 46.9% 49.0% -2.1pp
ROIC 1.3% 4.3% -3.0pp 5.9% 12.0% -6.1pp
ROIC (Adjusted for Goodwill) 3.6% 13.1% -9.4pp 16.9% 36.6% -19.7pp
Cash conversion ratio 431.1% 133.7% 297.4pp 135.1% 85.2% 49.9pp
Cash conversion ratio (tax normalised) 386.9% 149.5% 237.4pp 121.4% 90.9% 30.6pp
% change % change
DKK million Q4 2023 Q4 2022 Q4 YTD 2023 YTD 2022 YTD
Netcompany realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
37
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
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 realised results in line with full year guidance and best ever quarterly free cash flow in Q4 2023
38
38
Netcompany Group A/S
Strandgade 3, 1401 Copenhagen
Company Registration no. 39 48 89 14
Company Announcement No. 1/2024
25 January 2024
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 in-
volve a number of risks and uncertainties,
which could cause actual results to differ
materially from those predicted in the for-
ward-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 2023 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
result of new information, future events or
otherwise, except to the extent required
by law.
The Annual Report 2023 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.