Netcompany Group A/S and SDC Merger Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Daniel Djurberg - Handelsbanken Capital Markets - Analyst : Thank you, operator. Yeah, it's Daniel Djurberg, Handelsbanken. Yeah, interesting morning and good morning to you both. Question on the risk from this deal, creating the future of banking services here. Going back some 20 years in history, the Finnish competitors tried to do a similar approach, creating a European banking powerhouse that failed quite much on back of, different technologies tacks, processes, legislation, various culture. So, can you give a short discussion on why this won't happen in this case? Thanks.

Question: Daniel Djurberg - Handelsbanken Capital Markets - Analyst : Yeah, yes, certainly. And may I also ask you on the go to market strategy currently for SDC, and if you will change this, how do they use external system integrate this and will you continue to do that if that is the case? Thanks.

Question: Daniel Djurberg - Handelsbanken Capital Markets - Analyst : Interesting. Yeah, and my final question for me, would be you can comment a bit on this process if it's been in our open bid process, ongoing for us to see if it's been more of a mutual discussion coming up to this outcome.

Question: Daniel Djurberg - Handelsbanken Capital Markets - Analyst : Okay, that's fair enough. Yeah, thank you and good luck.

Question: Claus Almer - Nordea - Analyst : Thank you. Yes, also a few questions from my side. So the first goes to integration cost of synergies. So could you tell us what do you expect from integration cost and possible in synergies in the '26, '28 framework. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2025 / 7:15AM, NETCG.CO - Netcompany Group A/S and SDC Merger Call

Question: Claus Almer - Nordea - Analyst : So you will do that later when the transaction has been approved or when should we expect more details?

Question: Claus Almer - Nordea - Analyst : Okay, then in one of the slides it showed that 70% of the shareholders have have accepted. What about the remaining 30%? Is that do they have to sell or?

Question: Claus Almer - Nordea - Analyst : Sorry, it's Thomas, so they will sign up for the services you know talking about business or selling their shares.

Question: Claus Almer - Nordea - Analyst : Okay, so, but I guess you've been talking to them up to this morning and I guess they have not yet decided to sell. Is there any outstanding issues that prevented them to accept? What do you do when they don't accept?

Question: Claus Almer - Nordea - Analyst : Okay. In what way? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2025 / 7:15AM, NETCG.CO - Netcompany Group A/S and SDC Merger Call

Question: Claus Almer - Nordea - Analyst : Okay. Then the final question goes to the way you're going to integrate or run the business. Is this more an Intrasoft or it's more like the other divisions you have acquired? will you be integrated relatively fast or would it be a slow integration or not and no integration at all?

Question: Claus Almer - Nordea - Analyst : Okay, and so, and this new platform that SDC has developed, is this a subscription-based IP free? Is that, yeah, how about that?

Question: Claus Almer - Nordea - Analyst : Sorry, I might be slow this Monday morning, but is it a subscription-based model, or how do they pay for this platform, the customers?

Question: Claus Almer - Nordea - Analyst : Okay, so subscription-based kind of.

Question: Claus Almer - Nordea - Analyst : Okay, thank you. That was all from my side. Thanks.

Question: Yiwei Zhou - SEB - Analyst : Hi, good morning. Thank you for taking my question. I missed the first part of the conference call. It is, I don't know if the question has been asked, but, I have two questions here. Firstly, you could, maybe talk a bit about the, if there's any competing software platforms to SDCs, the competitive situation.

Question: Yiwei Zhou - SEB - Analyst : Yeah, it's very (inaudible), and in this context, I just want to ask going forward when you bid for the large tenders winning contract, it's sort of same patent that you were still sort of focusing on the IT service part of the business and then you will receive those kind of license income software revenue on top of it. As you are sort of, yeah, with the installing system and the other platform.

Question: Yiwei Zhou - SEB - Analyst : Great. And should we expect an increasing share of licensing come as group of the (inaudible)?Are you still the same?

Question: Yiwei Zhou - SEB - Analyst : Okay, great. And my last question here, then I jump back with you. The, given the SDC has a pretty large amortization for the sort of their, software, their IP, now, after integration, would you consider to change your sort of guidance structure, to guide EBITDA, as you did previously?

Question: Yiwei Zhou - SEB - Analyst : All right, thank you. I jump back with you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 10, 2025 / 7:15AM, NETCG.CO - Netcompany Group A/S and SDC Merger Call

Question: Aditya Buddhavarapu - Bank of America - Analyst : Hi, Andre, Thomas, thanks for taking my question. (inaudible) looking at the, as they see report looks like the revenues were up 8% in 2023. I know you, you're still in close, but could you get any sort of, ideas of the revenue growth in '24 and sort of any (inaudible)they might have had in future years, firstly, and then second, any (inaudible) you can give on any potential synergies we should look to.

Question: Aditya Buddhavarapu - Bank of America - Analyst : Any (inaudible) on potential, cost synergies, maybe from back office or other areas or maybe even, very technical areas.

Question: Aditya Buddhavarapu - Bank of America - Analyst : Yeah, exactly.

Question: Aditya Buddhavarapu - Bank of America - Analyst : All right, thank you.