NGS Group (NGS) investor relations material

Executive summary

• Improved market conditions for Nurse & Doc Partner and increased market share for Human Capital led to significantly better results year-over-year.

• EBITA for Q2 rose to 3.1 MSEK from 0.1 MSEK, with a margin of 4.4% compared to 0.1% last year.

• Net profit for Q2 reached 2.3 MSEK, up from a loss of -0.5 MSEK in the prior year.

• Human Capital became the fifth largest recruitment company among Almega-Kompetensföretagen members, up from twentieth two years ago.

• Ongoing internal efficiency improvements, including AI-driven processes, contributed to profitability.

Financial highlights

• Q2 net revenue: 71.4 MSEK (down 0.4% year-over-year); H1 net revenue: 136.8 MSEK (down 7.4%).

• Q2 EBITA: 3.1 MSEK (0.1 MSEK last year); H1 EBITA: 4.8 MSEK (0.0 MSEK last year).

• Q2 net profit: 2.3 MSEK (-0.5 MSEK last year); H1 net profit: 4.3 MSEK (-1.4 MSEK last year).

• Q2 operating cash flow: 3.2 MSEK (2.4 MSEK last year); H1 operating cash flow: 7.3 MSEK (-7.8 MSEK last year).

• Q2 EPS: 0.09 SEK (-0.02 SEK last year); H1 EPS: 0.17 SEK (-0.05 SEK last year).

Outlook and guidance

• Strategic initiatives focus on digitalization, offering development, structural capital, and marketing.

• Financial targets: 10% organic and acquired revenue growth over time, EBITA margin of 4%, dividend payout of 40-50% of net profit, and net debt/equity ratio max 50%.