Investor Presentaiton

nuuday In brief Business and strategy Performance Corporate governance Financial statements Operating expenses Nuuday's underlying operating expenses (excluding transformation costs) declined by 2.8%, or DKK 89m, to DKK 3,081m. This decrease reflected the early benefits of our transformation, notably the impact of improved customer experiences on reducing our call ratio. EBITDA Underlying EBITDA (excluding transformation costs) declined by 3.1%, or DKK 57m, to DKK 1,766m. Including transformation costs, EBITDA declined by 6.3%, or DKK 114m, to DKK 1,709m. Despite positive developments in service revenue, and falling operating expenses, EBITDA was negatively influenced by the decline in gross profit margins, primarily from third-party costs. Capital expenditure Capital expenditure excluding transformation costs decreased by 1.1%, or DKK 13m, to DKK 1,136m. This decline was driven mainly by lower capitalised wages as we re- duced investment in our legacy IT systems prior to the Netcracker launch. This was partly offset by an increase in volume-driven capex related to customer installations. Capital expenditure including transformation costs increased by 14.4%, or 165m, to DKK 1,314m. The increase was driven primarily by higher IT investments related to the transformation programme. Loss for the period After amortisation, interest expenses, etc., the loss (ex- cluding special items) amounted to DKK 138m. Despite transformation costs of DKK 57m in 2022, this was an im- provement of DKK 204m YoY. Including special items, the loss improved by DKK 200m to DKK 190m. The improved results were driven largely by reduced amortisation. Cash flow Total cash flow increased by DKK 396m from DKK 2m in 2021 to DKK 398m in 2022. The positive development was caused primarily by the transfer of Nuuday's share of TDC Holding's cash pool (DKK 865m) to its own bank accounts with effect from 1 January 2022. This was partly offset by the negative development in cash flow from investing activities (DKK 346m). Cash flow from operating activities declined by DKK 1,187m to DKK 959m, driven primarily by net working capital (DKK 1,225m) that related mainly to the imple- mentation of adjusted intra-group payment terms in 2021 in connection with the refinancing of Group debt. EBITDA also contributed negatively to the development (DKK 114m), which was partly offset by lower net inter- est paid (DKK 136m) related to refinancing. The DKK 346m increase in cash outflow from investing activities to DKK 1,316m, was due primarily to higher in- vestments (DKK 194m), divestment of Cloudeon in 2021 (DKK 97m) as well as acquisition of activities from TDC Holding (DKK 51m). Cash flow from financing activities increased by DKK 1,929m to DKK 755m. The above-mentioned change in net working capital was used to reduce amounts owed to Group companies (DKK 1,095m), while Nuuday's share of TDC Holding's cash pool was transferred to Nuuday (DKK 865m). 2022 guidance follow-up EBITDA performance in 2022 was in line with our guid- ance; namely that EBITDA would be somewhat lower in 2022 compared with 2021, driven by significant invest- ments in customer experiences as well as the continued migration of customers to fibre infrastructure. Cash generation was, as guided, materially lower in 2022 than in 2021 driven by the development in net working capital combined with the IT transformation. 2023 guidance We expect a flat development in service revenue in 2023, which will be a year with significantly higher investments in our business transformation, as well as continued migration of customers to fibre infrastruc- tures. Consequently, we expect that both EBITDA including and excluding transformation costs will be somewhat below the level in 2022. Underlying Capex (DKKm) 1,136 Loss excluding special items (DKKm) Cash flow from operating activities (DKKM) Employees excluding transformation FTEs (EOY) 138 959 3,515 Nuuday Annual Report 2022 19

View entire presentation