Company announcement
No. 35/2024

                                                 14 August 2024

Continued growth and improved margin

Summary

• In Q2 2024, Netcompany grew revenue by 10.5% (constant 10.2%) to DKK 1,650.2m.
• Adjusted EBITDA increased by 38% (constant 38.7%) to DKK 269.1m in Q2 2024. Adjusted EBITDA margin was 16.3% in Q2 2024 (constant 16.4%) compared to 13.1% in Q2 2023.
• Average number of full-time employees increased by 186 FTEs from 7,699 in Q2 2023 to 7,884 in Q2 2024.
• Free cash flow was DKK 148.2m in Q2 2024 compared to negative DKK 72.5m in Q2 2023.
• Cash conversion ratio was 104.7% in Q2 2024.
• Debt leverage was 1.5x in Q2 2024.
• Netcompany maintains expectations for full year.

“In Q2, we grew revenue by 10.2% driven by continued recovery in the Danish part of the Group as well as strong growth in Netcompany-Intrasoft and in the Netherlands. In addition, we continued to win new large projects based on our products and platforms.

As anticipated, margins continued to improve, and in Q2 we realised a margin of 16.4% and more than doubled our net result compared to the same period last year. The improved margins are a result of improved efficiencies and better utilisation, particular in the Danish part of the Group.

We have continued to hire outstanding talent throughout the quarter, giving a 2.4% growth in FTEs compared to the same period last year and end of Q2 the total number of FTEs passed 7,900.

It makes me proud and humble to see the results our employees deliver in a business environment that continues to be somewhat uncertain. We maintain our expectations to our financial performance for 2024 and initiate a new share buyback programme of DKK 150m running until the end of October 2024, and increase the expected share buyback programme for the full year to more than DKK 700m.

The performance in the past quarter makes me confident that we are on the right trajectory to deliver on our midterm targets for 2026.”

André Rogaczewski
Netcompany CEO and Co-founder

Financial overview
For full details on financial performance, see enclosed Company announcement Q2 2024.

Conference details
In connection with the publication of the results for Q2 2024, Netcompany will host a conference call on 14 August 2024 at 11.00 CEST.
The conference call will be held in English and can be followed live via the company’s website; www.netcompany.com

Dial-in details for investors and analysts
DK: +45 7876 8490
UK: +44 203 769 6819
US: +1 646 787 0157
PIN: 598046
Webcast Player URL: https://netcompany-as.eventcdn.net/events/interim-report-for-the-first-6-months-of-2024

Additional information
For additional information, please contact:

Netcompany Group A/S
Thomas Johansen, CFO, + 45 51 19 32 24
Frederikke Linde, Head of IR, +45 60 62 60 87