Core Insights - The company achieved a revenue growth of 9.1% in Q1 2025, reaching DKK 1,744.3 million, while also improving its adjusted EBITDA margin to 17.6% [2][5] - A merger with SDC is underway, forming a new entity called Netcompany Banking Services, expected to be completed around mid-year [2][3] - The company maintains its full-year financial expectations, projecting revenue growth of 5% to 10% and an adjusted EBITDA margin between 16% and 19% [3][4] Financial Performance - Adjusted EBITDA increased by 24.4% to DKK 307.3 million in Q1 2025, with a margin improvement from 15.5% in Q1 2024 to 17.6% [5] - Diluted earnings per share rose by 36.9% to DKK 2.56 [5] - Free cash flow improved significantly to DKK 67.9 million from a negative DKK 4.9 million in Q1 2024 [5] Workforce and Operational Metrics - The average workforce increased by 342 full-time equivalents (FTEs) to 8,150 FTEs in Q1 2025, compared to 7,808 FTEs in Q1 2024 [5] - The cash conversion ratio (tax normalized) was reported at 83.3% in Q1 2025 [5] - Debt leverage improved to 1.2x in Q1 2025 from 1.6x in Q1 2024 [5]

Group 1 - The Annual General Meeting on 4 March 2025 approved a decision to reduce the share capital by DKK 2,500,000 through the cancellation of 2,500,000 treasury shares [1] - Following the cancellation, Netcompany's ownership of treasury shares has fallen below 5% of the total share capital, in accordance with the Danish Capital Markets Act, section 31 [1]

Group 1 - The Annual General Meeting on 4 March 2025 approved a share capital reduction of DKK 2,500,000 by cancelling 2,500,000 treasury shares [1] - No objections were received regarding the share capital reduction, and it was registered by the Danish Business Authority on 7 April 2025 [1] - Following the cancellation, the current nominal share capital of Netcompany Group A/S is DKK 47,500,000, divided into 47,500,000 shares with a face value of DKK 1, corresponding to a total of 47,500,000 voting rights [2] Group 2 - For further inquiries, contact Thomas Johansen, CFO, or Frederikke Linde, Head of IR at Netcompany Group A/S [3]

Core Viewpoint - Netcompany Group A/S has received regulatory approvals for the merger with SDC, which aims to create a combined company fully owned by Netcompany to enhance banking services [1]. Group 1 - The merger is part of a strategic initiative to form a new entity that will focus on the future of banking services [1]. - The announcement regarding the merger was initially made on February 10, 2025, under company announcement no. 09/2025 [1]. - The closing of the merger is still subject to customary closing conditions as outlined in the previous announcement [1].

Core Viewpoint - Netcompany Group A/S has entered into an agreement to merge with SDC A/S, creating a new company that will be fully owned by Netcompany, aimed at enhancing banking solutions and services for current and future banks on SDC's platform [1][2][6] Transaction Details - The transaction values SDC at DKK 1 billion, with a cash payment of DKK 1 billion to SDC's shareholders, funded through existing credit facilities [2] - The closing of the transaction is anticipated around mid-2025, pending regulatory and customary conditions [2] Strategic Rationale - This merger provides Netcompany with a strong position in the financial services sector, which is the highest spending vertical in IT services in Europe, with a total addressable market in Denmark, Norway, and Sweden estimated at over DKK 44 billion in 2025, growing more than 10% annually until 2028 [3] - The combined product suite will include Netcompany's offerings and SDC's core banking platform, aiming to improve the banking experience through enhanced digital services and personalized solutions [4] Workforce Impact - Post-transaction, the combined workforce of Netcompany and SDC will exceed 9,200 full-time equivalents (FTEs) [5] Leadership Statements - The CEO of Netcompany expressed excitement about the transaction, highlighting its alignment with the company's strategy to expand capabilities in the financial services industry and the potential for digital innovation [6] - The Chair of SDC noted the significance of this merger in enhancing competitiveness and setting new standards in banking services [7] Company Background - SDC is a leading IT service provider in the Nordic region, specializing in IT solutions for the financial services industry [8] - Netcompany is a prominent IT services company focused on digital transformation across Europe, with a strong portfolio of innovative solutions [9] Financial Guidance - For 2025, Netcompany expects organic revenue growth between 5% and 10% and an adjusted EBITDA margin of 16% to 19% [11] - The transaction is projected to be EPS accretive from 2026 and to provide double-digit percentage EPS accretion by 2028 compared to 2024 [12]

Group 1 - The Annual General Meeting of Netcompany Group A/S is scheduled for Tuesday, 4 March 2025 at 15:00 CET [1] - The meeting will be held entirely electronically, with no physical attendance allowed [1] - Further details regarding the meeting, including the notice and candidate descriptions for the Board of Directors, are available online [2] Group 2 - Contact information for additional inquiries includes Thomas Johansen, CFO, and Frederikke Linde, Head of IR [3]

Core Points - Netcompany Group A/S reported transactions made by persons discharging managerial responsibilities in connection with the automatic vesting of Restricted Stock Units (RSUs) under the Long-Term Incentive Plan (LTIP) [1] Group 1: Managerial Transactions - André Rogaczewski, CEO, acquired 1,935 shares following the automatic vesting of RSUs, with a transaction date of 28 January 2025, at a price of DKK 0 [2][3] - Claus Jørgensen, COO, also participated in the acquisition of shares under the same conditions, with the same transaction details [3] - Thomas Johansen, CFO, acquired 1,075 shares following the automatic vesting of RSUs, with a transaction date of 28 January 2025, at a price of DKK 0 [4]

Core Insights - The company achieved a revenue growth of 7.6% (constant 7.4%) and an adjusted EBITDA margin of 16.8% (constant 16.9%) in 2024, despite high macro and geopolitical uncertainty [3][8] - There was a significant improvement of over 53% in earnings compared to the previous year, attributed to substantial investments in operations and business development [4] - The company welcomed over 1,700 new employees in 2024, bringing the total workforce to more than 8,250 [5] Financial Performance - For the full year 2024, revenue reached DKK 6,540.6 million, with adjusted EBITDA at DKK 1,097.9 million, up from DKK 901.2 million in 2023 [8] - The adjusted EBITDA margin improved to 16.8% in 2024 from 14.8% in 2023 [8] - Free cash flow for 2024 was DKK 821.1 million, an increase from DKK 552.1 million in 2023, with a cash conversion ratio rising to 147.1% from 135.1% [8] Future Outlook - The company expects revenue growth of 5% to 10% in 2025, with an adjusted EBITDA margin forecasted between 16% and 19% [6] - The mid-term adjusted EBITDA margin target remains at 20%, but the timeline for achieving DKK 8.5 billion in revenue has been deferred to 2027 [6] - A total cash redistribution of at least DKK 2 billion to shareholders is planned by 2026, although no new share buyback program will be initiated at this time [6]

Share Buyback Programme - Netcompany Group A/S initiated a share buyback programme on 31 October 2024, with a maximum budget of DKK 250 million and up to 1,300,000 shares, aimed at adjusting the company's capital structure and fulfilling obligations related to share-based incentive programmes [1] - The programme was executed in compliance with EU Market Abuse Regulation (EU Regulation no 596/2014) and the Safe Harbour Regulation (Commission Delegated Regulation (EU) 2016/1052), and was scheduled to conclude by 24 January 2025 [2] Final Transactions - Between 23 January 2025 and 24 January 2025, Netcompany purchased 7,500 shares at an average price of DKK 33824 and 3,555 shares at an average price of DKK 33531, with total transaction values of DKK 2,536,786 and DKK 1,192,026 respectively [3] - The accumulated transactions during this period amounted to 11,055 shares, with a total value of DKK 3,728,812 [3] - Over the entire programme, Netcompany repurchased 719,967 shares, totaling DKK 249,999,576 [3] Treasury Shares - Following the final transactions and the vesting of RSUs, Netcompany holds 2,946,658 treasury shares, representing 59% of the total share capital [4] Additional Information - For further details, Netcompany provided contact information for Thomas Johansen, CFO, and Frederikke Linde, Head of IR [5]

Core Viewpoint - Netcompany Group A/S has initiated a share buyback program of up to DKK 250 million and a maximum of 1,300,000 shares to adjust its capital structure and fulfill obligations related to share-based incentive programs [1][2]. Group 1: Share Buyback Program Details - The share buyback program is compliant with EU Market Abuse Regulation and will conclude no later than 24 January 2024 [2]. - Transactions under the share buyback program will be reported weekly through Nasdaq Copenhagen [2]. Group 2: Transaction Summary - From 12 December 2024 to 18 December 2024, a total of 73,234 shares were repurchased, with an accumulated transaction value of DKK 26,843,515 during this period [5]. - Overall, under the share buyback program, Netcompany has repurchased 473,696 shares, amounting to a total transaction value of DKK 166,311,543 [5]. - Following the recent transactions and vesting of RSUs, Netcompany holds a total of 2,702,605 treasury shares, representing 5.4% of the total share capital [3].