Netcompany Group As Adr

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248 million related to a provision for redundancies expected to be realized during the coming 9 to 12 months. The provision relates to ongoing sizing of the organization, adjustments in employee mix, and realization of efficient growth in all entities throughout the group. The net effect hereof is expected to have a full impact from the second half of 2027 and onwards. Group adjusted EBDA before allocated headquarter cost increased 45.7% to 346.5 million Danish in Q2 2026 of which 30.9% were organic. In net company Denmark adjusted EBDA margin decreased 0.3 percentage point to 16.4 in Q2 2026 Which Mainly Reflected Increased Local Marketing Costs Related To The Partnership With Net Company Ines Cycling Team Excluding The Net Impact From The Net Company Ines Partnership Adjusted EBDA Margin In Denmark Would Have Been 21.1% For Q2 2026 In Net Company CU Adjusted EBDA Margin Was 16.2% In Q2 2026 Compared To 15.1% In The Same Quarter Last Year In The Net Company UK Adjusted EBDA Margin Increased to 13.6% from 1.6% in the same quarter last year as a consequence of strong operational performance and stable costs. In Net Company Norway, Adjusted EBDA Margin was 1% in Q2 and in Net Company Netherlands, Margin Increased to 25.6% in the quarter. For net company banking services, the adjusted EBITDA margin was 7.9% in Q2 compared to performer adjusted EBITDA margin of 3.4% in STC in the same quarter last year. The integration is, as Andre mentioned, progressing as anticipated, and we are starting to see the impact from synergies materializing. Can we have the next slide, please? Organic adjusted EBDA before allocated costs was 634 million Danish in the first half of 2026, yielding an organic adjusted EBDA margin before headquarter cost of 15.9% compared to 16.2% in the same period last year. The decrease in organic adjusted EBDA margin was driven by lower license revenue and increased investments in agentic AI, as well as increased marketing costs related to the partnership with NET Company India's cycling team. excluding the net impact of the NEC partnership, organic adjusted EBDA margin would have been 16.7% in the first half of 2026. Can we have the next slide, please? In Q2 2026, we employed an average of 9,895 full-time equivalents, which was an increase of 18.7% compared to Q2 2025. Around half of the increase was non-organic and related to the inclusion of net company bank services. To enhance and streamline our product and platform offering and further embed AI capabilities into these, all efforts around product and platform development as well as AI initiatives previously anchored with the business segments in Denmark and Southeast Europe was moved into one central unit, product development, as of 1st of January 2026. In Q2 2026, the number of FTEs in this unit increased by 124 FTEs compared to the same quarter last year, as investments in adopting agentic AI into our products and platforms accelerated. The number of organically client-facing FTEs for the Group increased by 9.3% to 8,137 in Q2 2026. The attrition rate for the last 12 months was 16.3%, which was on a decrease of 1.9 percentage point compared to 18.2% in Q2 2025. Can we go to the next slide, please? The group generated free cash flow of 41.2 million Danish in Q2 2026 compared to 25.6 million Danish in Q2 2025 and significantly improved free cash flow compared to Q1 this year, which was negative with 310 million Danish. The free cash flow in Q2 2026 was supported by the positive development compared to Q1 in net working capital. We have previously stated that the negative working capital that we saw in Q1 would be leveled out during the remainder of 2026, and the improvement in working capital in Q2 2026 illustrates that we are following that path. Days sales outstanding remained stable at 57 days in the quarter compared to 58 days in Q2 2025 and 57 days in Q1 2026. Cash conversion rate was 17.7% in Q2 compared to 32.6% in Q2 last year. However, adjusted for the taxes paid on account, cash conversion rate was 18.9% in this quarter compared to 14.6% in Q2 2025. Can we have the next slide, please? Revenue visibility end of Q2 2026 for the Group, excluding net company banking services, amounts to 6.8 billion Danish, an improvement of 10.4% compared to Q2 2025, with an improvement in visibility in the public segment of more than 11.5% compared to last year. Revenue visibility for net company banking services amounts to 1.7 billion and is solely related to the private sector. Can we have the next slide, please? Based on revenue growth of 14.9%, of which 15.1 percentage points were organic for the first six months of 2026, and taking into account the current backlog and weighted pipeline, we raise our revenue guidance for 2026. For the group, excluding net company banking services, revenue growth is now expected to be between 6.5% and 10.5%, which was previously between 5% and 10%. Guidance for adjusted EBITDA margin, excluding net company banking services, of between 17% and 20% is maintained. For the group, we raised revenue growth guidance for 2026 to be between 16% and 20.5%, which was previously between 15% and 20%. while maintaining adjusted EBITDA margin of between approximately 16% and approximately 19% all in constant currencies. With that, the presentation of the financial performance is concluded and we will open the call for the Q&A. So if we move to the Q&A slide, please.

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