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Competitive Strengths

The Group has well developed competitive advantages that position Nets as a leading digital payments provider in the Nordic region and that will help Nets drive growth in the future. In particular, the business could benefits from the following key strengths:

A leadership position in the Nordic region

For almost half a century, Nets has been delivering payment solutions to Nordic banks, merchants, corporate customers and consumers. Nets’ pan-Nordic presence was created through the merger of PBS of Denmark and BBS and Teller of Norway in 2010 and the acquisition of leading Finnish payments provider Luottokunta in 2012, as well as several acquisitions in the Nordic region in 2014 to 2016. Due in part to its long history and expansion in the Nordic region, Nets now operates in a central position within the digital payments landscape in the region. For example, Nets is now one of the leading digital payments providers in Europe in terms of both revenue and the number of transactions processed, a very large provider of payment solutions in Denmark, Norway, and Finland and is a large provider of payment solutions in Sweden.

An end-to-end provider of all types of digital payments in the Nordic region

Nets’ solutions have been used for decades across the Nordic region, where Nets has become an integral part of the payments ecosystem. Nets participates throughout the entire Nordic card- and account-based payments ecosystem, providing a comprehensive array of digital payment solutions to merchants, financial institutions, corporations and government agencies across the region. Conversely, outside the Nordic region, the payments value chain is generally much more fragmented across a multitude of service providers.

A robust operating and technology platform

Nets owns and operates technology solutions. The majority of these technology solutions are developed in-house, which provides Nets with a wide range of capabilities that help to distinguish it in the Nordic region. Nets’ platform can help it to differentiate its operations and offering on the basis of its scale, scalability, innovative product development and high degree of control over its technology profile. Nets’ operating and technology platforms are strategically positioned in the Nordic digital payments ecosystem, designed to meet the needs of its large, diversified customer base and support its regional operations.

An attractive financial profile

Nets has a well-diversified business model across multiple operating segments, products, customer bases and the Nordic region and an attractive financial profile, with a combination of organic growth, visible revenue streams, operating leverage and high cash generation.
The Group has a stable and predictable revenue model, with significant repeat business from existing customers and a high customer retention rate. The Group maintains long-term relationships with many customers, and nine out of its top ten customers have been customers of the Group for over 30 years. Nets’ business model is also resilient to economic cycles and benefits from structural industry trends. Many of the Group’s products and services (including, for example, Dankort, the processing of BankAxept transactions and Betalingsservice) have demonstrated continued growth in the number of transactions during economic downturns.

A highly experienced management team with proven track record of execution

Nets has built a management team that has extensive operating experience in the financial services, payments and technology sectors and a track record of execution at leading publicly-listed companies. The management team has had a significant impact on Nets’ performance since Nets’ change of ownership in 2014, driving strong revenue growth, executing the Transformation Programme, which included investing in its technology platform and completing strategic acquisitions.