Team Internet (TIG) 2022年年度報告「AIM」.pdf

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1、CentralNic Group PlcAnnual report 2022Helping onlineconsumers makeinformed choicesContentsStrategic reportPurpose,strategy and values 1Our highlights 2Journey so far 3What we do 4Market opportunity 8Chairmans statement 10Investment case 11Chief Executive Offi cers report 12Our business model 15Our s

2、trategy 17Key performance indicators 19Section 172(1)statement 22Environmental,social and governance 23Chief Financial Offi cers report 39Risks 42GovernanceBoard of Directors 46Corporate governance 48Audit Committee report 52Remuneration report 53Directors report 59Financial statementsIndependent au

3、ditors report 64Consolidated statement of comprehensive income 69Consolidated statement of fi nancial position 70Consolidated statement of changes in equity 71Consolidated statement of cash fl ows 72Notes to the consolidated fi nancialstatements 74Company statement of fi nancial position 109Company

4、statement of changes in equity 110Notes to the Company fi nancial statements 111Particulars of subsidiaries andassociates 114Additional informationShareholder information 118Glossary 1201CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportPurpos

5、e,strategy and valuesStrategic priorities:Purpose:Helping online consumers make informed choicesOrganic growthOperating leverageCompetitive cost of capitalFocused bolt-on M&ARead more on page 17Underpinned by our values:ImpactOwnershipCollaborationRead more on page 36GrowthResilienceCreating value f

6、or stakeholders:CustomersColleaguesInvestorsRegulators and governmentsPartnersCommunitiesRead more on page 222CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportOur highlightsOrganic growth and operating leverage,augmented by focused bolt-on M&

7、APost year end highlights Completion of GBP 4m share buyback programme on 19January 2023(launched on 30 December 2022).The Financial Times listed CentralNic among the top 250 fastest-growing companies and among the top 50 fastest-growing technology companies in Europe.Appointment of William Green to

8、 the Board of Directors on 30 January 2023.Financial highlightsRevenue growth (USD m)Net revenue/gross profit growth(USDm)Adjusted EBITDA growth (USD m)Operating profit growth (USD m)Organic revenue growth (USD m)Organic net revenue/gross profit growth(USD m)Organic adjusted EBITDA growth(USD m)Net

9、debt deleverage (USD m)+77%20212022410.5728.2+52%2021202262.394.6+171%2021202212.433.6+50%20212022118.5177.7-30%2021202281.456.6+60%20212022465.5743.1+86%2021202246.386.0+30%20212022145.0188.72022 highlights Record 60%organic revenue growth for FY22.Appointment of Michael Riedl as Chief Executive Of

10、ficer and William Green as Group Chief Financial Officer on 12December 2022.Oversubscribed GBP 42m equity raise on 28February2022,EUR 21m bond placing on 7March2022 and fully taken up Open Offer of GBP3m on 21 March 2022.Refinancing of debt facilities comprising a USD 150m term loan and a USD 100m r

11、evolving credit facility.The borrowing cost of the facilities is determined by CentralNics net leverage,which is initially 2.75%above SOFR,a notable reduction compared to the 7%above three-month EURIBOR for the senior secured bond it replaces.Acquisition of VGL Verlagsgesellschaft mbH(VGL)now VGL Pu

12、blishing AG,aleading product review website publisher,on 8March2022 for an enterprise value of EUR 60m(c.USD65m).Acquisition of M.A Aporia(Aporia)on 13September2022 for an initial consideration of USD 11m.Acquisition of Intellectual Property Management Company for an enterprise value of USD 7m on 26

13、October 2022.Purchase of a niche website portfolio for USD 5m.As CentralNic made six acquisitions in 2022 andfour in 2021,the Company alsoprepared anon-GAAP pro forma comparable financial summary including all businesses currently controlled by CentralNic(a definition of which is provided in note 3

14、to the consolidated financial statements),to effectively isolate organic growth.Throughout this report,figures qualified by organic refer to this pro forma financial summary.3CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportJourney so farCent

15、ralNic has achieved a revenue Compound Annual Growth Rate(CAGR)of 78%since its IPO in 2013,throughacombination oforganic growth andhighlyaccretiveacquisitionsCAGR:78%USD 4mUSD 8mUSD 32mUSD 56mUSD 109mUSD 240mUSD 411mUSD 728m2013201420152016201720182019202020212022Acquisition:DomiNICAcquisition:inter

16、net.bsAcquisition:dnsXpertsAcquisition:Instra GroupAcquisition:SK-NICAcquisitions:KeyDrive,GlobeHostingAcquisitions:TPP Wholesale,HEXONET,Ideegeo,Team InternetAcquisition:CodewiseAcquisitions:SafeBrands,Wando,White&Case publishing network,NameActionAcquisitions:VGL,Fireball,.ruhr TLD,M.A Aporia,Inte

17、llectual Property Management Company,Niche website portfolioUSD 14mUSD 29m4CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportWhat we doA leading global internet solutions company,operating in two highly attractive markets:high-growth digital a

18、dvertising(Online Marketing segment)and domain name management solutions(Online Presence segment)Online MarketingOnline PresenceCreating privacy-safe and AI-generated online consumer journeys that convert general interest online media users into confident,high conviction consumers through advertoria

19、l and review websitesRecurring revenue modelRolling open-ended revenue share contractsA critical constituent of the global online presence and productivity tool eco system,where we serve as the primary distribution channel for a wide range of digital productsRecurring revenue modelAnnual subscriptio

20、nsRevenue USD 153.5 million2021:USD 149.3 millionNet revenue/gross profitUSD 52.6 million2021:USD 53.3 millionRevenueUSD 574.7million2021:USD 261.3 millionNet revenue/gross profitUSD 125.1 million2021:USD 65.2 million120%Revenue growth3%Revenue growthProcessed domain registration years12.3 million20

21、21:12.6 millionVisitor sessions4.6 million2021:2.6 millionAverage revenue per domain yearUSD 9.92021:USD 9.4Revenue per thousand sessions(RPM)USD 105.02021:USD 76.45CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportWhat we docontinuedOnline Ma

22、rketing case study:In Online Marketing,CentralNic helps online consumers make informed choices an evergreen purposeWe do so by creating customer journeys that convert general interest media users into high conviction online customersWe engage by offering contact points on social media or native cont

23、ent networks,publisher websites and search engines in the form of ads for broad categoriesWe educate the consumer through easy tounderstand advertorials and review websitesBy working with world-leading aggregators,we have access to commercial inventory that closely matches the consumersintentCentral

24、Nic is particularly good at this due to machine learning on billions of consumer interactions,providing superb insights into the psychology of online consumers6CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportWhat we docontinuedOnline Marketi

25、ng case study:In Online Marketing,CentralNic helps online consumers make informed choices an evergreen purpose continuedWhat does it look like in real life?Consumers on social media are run through brief consumer guides before being referred to a recommended merchantSocial media user experienceCentr

26、alNic places ads for broad categories on social media,in this example on Facebook(1).If an online consumer is interested in the category,they click on the ad.An online consumer is then forwarded an advertorial website where the online consumer learns what they need and clicks on a link for a more sp

27、ecifi c category.The consumer is then presented with related search terms to further close in on their intent.The consumer then clicks out to the merchant with the offer thatcomes closest to their intent or need.When the consumer checks out of the e-commerce partners site,CentralNic ispaid.The consu

28、mer is then presented a choice of relevant products where we identify the best,the most affordable,the best price-quality and best seller products consumers are typically happy to adopt one of the four strategies.CentralNic places ads for product categories on search engines.Due to a vast inventory

29、of high quality product review content,CentralNic would also appear high in the searchranking.The consumer is then shown the ad most relevant to their intent.Once the consumer clicks,CentralNic ispaid.The online consumer then arrives on the offering of the most relevant vendor,in this instance T-Mob

30、ile(2).Search engine users are directed to review websites before buying the product of their choice at an e-commerce partnerSearch engine user experience11232345(1)Facebook is an example of a supplier.They provide traffi c,and CentralNic pays for it.(2)T-Mobile is an example of a customer.CentralNi

31、c refers a customer and gets paid for it.7CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportWhat we do continuedConsumer engages with the,or one,of the proposed merchantsMerchant pays CentralNic,through an aggregator ordirectlyCentralNic and i

32、ts partners place a broad array of contact points in the form ofadsConsumer engages with a CentralNic ad on social media or thewebCentralNic provides the consumer with helpful contentCentralNic pre-qualifies merchants to be in front of the consumerCentralNics AI-based,dynamically optimised portfolio

33、 of:Advertorial websites Comparison websites Special interest micro sitesValue creation Only see the most relevant ads Merchants appreciate the pre-informed,high intent online consumers who convert more frequently and return goods lessoften Never see malicious ads Only proceed if they interact (no a

34、uto forwarding/redirecting)Increase their reach to media outside the media buying domain Have more information to make a confident,informed choice Remain private as no third-party data is collected or shared Pay a fee for the referral or a commission for a completed transactionValue captureOnline Ma

35、rketing case study:In Online Marketing,CentralNic helps online consumers make informed choices an evergreen purpose continuedOnline consumers value the noise reduction and privacy value is captured through commercial alliancesOnline consumers:Merchants:8CentralNic Group Plc|Annual report 2022Additio

36、nal informationFinancial statementsGovernanceStrategic reportMarket opportunityCentralNic creates a vibrant,symbiotic ecosystemFY22 value flows,Sankey presentationDomain Registries:16%Value added services:2%Registry:1%Corporates:2%SMB:5%Resellers:13%Analytics SaaS:1%Affiliate advertisers:5%E-commerc

37、e:6%Search:67%Native:32%Search ads:7%Social media:26%Domains:9%Alternative publishers:5%Contextual ads:3%Gross profit:USD 178mTotal revenue:USD 728mCost of sale OM:USD 450mRevenue OM:USD 575mRevenue OP:USD 153mCost of sale OP:USD 101m9CentralNic Group Plc|Annual report 2022Additional informationFina

38、ncial statementsGovernanceStrategic reportMarket opportunity continuedOnline MarketingOnline PresenceSearch:we address a broad array of industries whose constituents advertise on search engines.The largest industries are Health(27%),Home,Business and Automotive(12%each),Education(10%)and Finance(8%)

39、.Each industry is constituted by numerous verticals which then comprise countless different advertisers.Resellers:leading domain marketplace connecting more than 1,500 Top Level Domains(TLDs)to more than 25,000 resellers,among global leaders such as GoDaddy,Newfold Digital and many others.E-commerce

40、:we generate commission income on transactions by customers referred e-commerce partners.Theopportunity grows constantly through adding new product reviews and expanding into new verticals.As CentralNic currently only addresses the German-speaking market,thisrevenue stream has tremendous potential f

41、or growth byinternationalisation.Small and medium-sized business:c.250,000 direct SMB customers addressed through 13 brands specialised on specifi c geographies or customer personas.Affi liates:More than 3,000 affi liate advertisers use CentralNics performance marketing and advertising technology pl

42、atform.Corporates:trusted guardians of the domain portfolio brands of hundreds of internationally recognised brands such as Johnson&Johnson,Mercedes-Benz and Rolex.Analytics SaaS:our privacy-enabled marketing solution resonates perfectly with market demand.CentralNics SaaS Analytics platform has 5,0

43、00 active users who take advantage of its automation capabilities to track and optimise multiple ad campaigns to improve conversion.CentralNic does business with most of the companies in its industry,providing a strong competitive advantage for M&A discussionsRegistry:leading outsourcing provider fo

44、r new Top-Level Domains(nTLDs),managing 14 million domain names under 107 nTLDs.CentralNics unique market position10CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportIain McDonaldChairmanAs we enter the new year of 2023,it is with great pleasu

45、re that we reflect on the exceptional results achieved by CentralNic in 2022.The Groups ability to drive organic growth beyond industry benchmarks is a testament to our unwavering commitment to providing innovative solutions for our valued customers,as well as our expertise in seamlessly integrating

46、 acquisitions into thriving marketplaces.Despite the challenges posed by the evolving legal,policy and technical landscape,CentralNic has continued to flourish and maintain its position as a leader in the Online Marketing space.Our margins have remained robust,and the Group has generated substantial

47、 operating cash flow,further strengthening our financial position.In 2022,we supplemented our organic growth with six earnings accretive acquisitions,the most material of which was VGL Publishing AG our largest acquisition to date.Looking forward,webelieve there may be further M&A opportunities,alth

48、ough we expect to follow a more balanced approach to our capital allocation than in the past.The fact that we have already executed our maiden share buyback at the end of 2022 and recommended the payment of our first dividend is the first evidence of a strategy which will focus more on direct return

49、s to shareholders.The fact that we have successfully refinanced our bond and continue to generate strong free cash flows means the business is well positioned to execute upon a capital allocation policy which allowsdistributions to Shareholders,reduced overall debt levels and accretive M&A where app

50、ropriate.Despite the volatile start to 2022,CentralNic has remained steadfast in its growth trajectory,thanks to the tireless efforts and dedication of our executives,staff and Board.The leadership of the Group will now be further strengthened by the internally promoted CEO and CFO.On behalf of our

51、Shareholders,I express my sincere gratitude for their contributions and accomplishments.Letus look forward to another successful year of growth and continued success in 2023.Iain McDonald Chairman24 March 2023The Group achieved exceptional results in 2022,illustrated by the Online Marketing segment

52、continuing to flourish in an evolving landscape.Chairmans statement11CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportInvestment caseNo cookies used on private user data collected as part of this Online Marketing businessOnline Marketing serv

53、ices billed continually on utility-style rolling contractsAverage Online Marketing customer has been using our service for circa six yearsOnline Marketing continues tothrive inthe face of ban on third-party cookies and cross-app trackingRecurring revenuesHigh customer stickinessProven resilienceFutu

54、re proof Online Presence services sold as annual subscriptionsOnly 3%of Online Presence customers change supplier each yearContinued growth in Online Presence despite competition from walled gardens(Facebook,Amazon,Apps,etc.)Marketplace model focuses on diversification of suppliers and customers and

55、 capacity to rapidly switch between themA hugely resilient recurring revenue business12CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportMichael RiedlChief Executive OfficerChief Executive Officers reportWe remain focused on executing our stra

56、tegy,delivering value to our audiences,and continuing to achieve success.I am honoured to present my first CEOs report following my appointment,as CentralNic reflects on its most outstanding year to date.Our revenue growth rate of 77%in 2022 aligns with our revenue Compound Annual Growth Rate since

57、our initial listing in 2013.For the first time,this growth was predominantly organic,with an increase of up to 60%from a traditional base of 5-6%.This growth was fuelled by our successful diversification into Online Marketing and the steadfast reliability of our Online Presence business.Online Marke

58、tingCentralNics Online Marketing business,built on the foundation of our late 2019 acquisition of Team Internet,aims to empower online consumers in making informed choices.We fulfil this mission by designing AI-driven customer journeys that transform general interest online media users into high con

59、viction consumers.By offering contact points on social media,publisher websites,and search engines in the form of ads for various product and service categories,we educate consumers through comprehensible advertorials and review websites.Collaborating with world-leading aggregators,we ensure access

60、to commercial inventory that closely aligns with consumers intent.CentralNics expertise in understanding online consumer psychology,informed by machine learning from billions of consumer interactions annually,sets us apart in the market.Our approach creates value for consumers by offering noise redu

61、ction and independent advice in a privacy-safe environment.Advertisers recognise this value and are willing to pay premium rates for leads with impressive conversion rates and minimal returned merchandise.The success of this symbiotic approach is evident in the numbers:consumer engagement in custome

62、r journeys increased from 2.6billion in 2021 to 4.6 billion in 2022,and the value capture per thousand rose from USD 76 in 2021 to USD 105 in 2022.Our ability to grow consumer engagement and value capture drives thesuccess of our Online Marketing business.CentralNics proprietary artificial intellige

63、nce and contextual data usage enhance customer experiences and boost revenues for vetted merchants.We offer advertisers a reliable stream of new customers and generate revenue for publishers through utility-style contracts that charge fees for consumer referrals or completed transactions.Our industr

64、y-leading anti-fraud and compliance software and teams utilise AI to detect suspicious behaviour,ensuring our solutions are privacy-compliant and fully adhere to data laws and recent policies governing third-party data handling and cookie usage.To build upon our success,we acquired VGL Publishing AG

65、 in March 2022,which deepened our consumer relationships by assisting consumers in selecting the right merchandise.Our acquisition of M.A Aporia in September 2022 expanded our ability to engage with consumers on social media.The revenue-generating niche website portfolio,acquired in December 2022,se

66、amlessly integrates with our ParkingCrew service,providing fully controlled,proprietary,and highly relevant direct navigation traffic.13CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportChief Executive Offi cers report continuedOnline Marketin

67、g continuedIn the section of our business that connects relevant consumers with merchants advertising on search engines,our primary focus will be on vertical integration and disintermediation.This area is currently the backbone of the segment in terms of product and business development,as well as m

68、ergers and acquisitions.As for the part of our business dedicated to assisting consumers infi nding the right merchandise,our strategy will involve expanding both the range of verticals and our geographical presence.Currently,we are primarily focused on e-commerce goods thatcanbe shipped,and our rea

69、ch is limited to German-speaking countries.By extending our scope in these areas,we aim to unlocksignifi cant growth potential,moving beyond incremental improvements to achieve exponential expansion.Online PresenceThe Online Presence segment plays a crucial role in the global online presence and pro

70、ductivity tool ecosystem.As the primary distribution channel for a diverse array of digital products,our most vital offering is domain names,which are essential for businesses and organisations of all sizes to establish their online presence.CentralNic sets itself apart from competitors by providing

71、 the most extensive selection of domain extensions,coupled with fully automated APIs and fulfi lment services.These features allow customers to easily purchase and manage their domain names.Web hosting companies,renowned international brands,and small to medium-sized businesses(SMBs)all value the on

72、e-stop-shop experience offered by the Online Presence segment.It enables them to address all their domain name needs in a single location,streamlining the management of their online presence.Moreover,country-code and generic domain operators gain access to an unmatched distribution network,ensuring

73、exceptional reach and visibility.This network encompasses a wide variety of strategic partners,resellers,and registrars,simplifying the process for customers to locate and acquire the domain names essential for online success.Given that the Online Presence market exhibits high customer retention,wit

74、h only an average of 3%of customers switching providers each year,CentralNics strategy for this segment revolves around fi nalising the operational integration of a carefully assembled group of global businesses.By transforming these businesses into a unifi ed marketplace,weaim to achieve organic gr

75、owth by continuously adding new suppliers,distribution channels,and customers.Group strategic prioritiesMoving forward,CentralNics strategic priorities are as follows:Organic growth:CentralNic is focused on winning new customers,growing existing customer relationships,launching new products,contract

76、ing with new suppliers and entering new geographical markets.This will help the Group to expand its reach and drive long-term growth and profi tability.We are clearly committed to beat the organic growth targets implied by market consensus.Operating leverage:CentralNic is working to scale up its onl

77、ine marketplaces,as these platform businesses can support higher volumes of transactions with internal costs growing at a lower rate.This will help the Group to achieve stronger operating leverage,allowing it to achieve more effi cient use of its resources and increase its profi tability over time.C

78、entralNics adjusted EBITDA to gross profi t ratio,which improved from 39%in 2021 to 48%in 2022,is testament to operating leverage at work.Competitive cost of capital:CentralNic is committed to continuing to manage its debt ratios and ended the year in a strong position with net debt/EBITDA at 0.9x,d

79、own from 2.2x the year before,despite notable investment in M&A.Through our successful refi nancing we have mitigated the impact of rising interest rates and extended maturities dramatically.Please refer to the Chief Financial Offi cers report for more details.While a certain level of indebtedness i

80、s healthy from a cost of capital and international tax planning perspective,under my tenure,the leverage will not increase to the levels of 2021 and earlier years.At the same time,the use of equity comes at even higher cost.To square this circle,we are putting a waterfall model into place that is de

81、scribed on the next page.Buy and build:M&A has been a critical enabler of CentralNics success.Without bold,successful investments since 2019,CentralNic would not be where it is today.At the same time,we have now built two strong pillars of critical size in their respective industries.In addition,we

82、have added the strategic capabilities most crucial to these businesses through our 2022 acquisitions.Therefore,future acquisitions are more likely to be targeted bolt-ons rather than transformational acquisitions and be accretive from a cash fl ow return on investment perspective.14CentralNic Group

83、Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportChief Executive Offi cers report continuedWaterfall modelTo ensure compatibility among the strategic priorities outlined above,the Board intends to allocate the Groups free cash fl ow asfollows:1.progressive di

84、vidend policy:given the Groups maturity and resilience in volatile markets,the Directors have decided to implement a progressive dividend policy as a fundamental cashreturn.The proposed dividend of 1.0 pence per share for 2022 represents approximately 6%of the years free cash fl ow,providing ample r

85、oom for growth and achieving other corporate objectives;2.organic growth:while all our business units have positive EBITDA,the Directors will consider investing in capital projects that drive the Group forward and yield returns above the cost ofcapital.These projects may include platform integration

86、,content repository expansion,or international growth;3.accretive bolt-on acquisitions:CentralNic is the company we know best.Thus,acquiring any other company must provide higher returns than repurchasing our own equity.Investing free cash fl ow in accretive acquisitions also helps reduce leverage b

87、y increasing pro forma EBITDA;4.share buybacks:any remaining free cash fl ow will be used for share buybacks within limits agreed upon with the banking pool.Shares may be reissued for acquisition purposes;and5.debt repayment:if any funds remain,they will be allocated to reduce the Groups gross debt.

88、If net leverage approaches thelevels seen at the end of 2021,the Group will prioritise debtreduction over share buybacks,using free cash fl ow forthispurpose.Post year end and outlookWith the completion of our inaugural share buyback in January 2023 and the announcement of a maiden dividend,we have

89、already lived up to the promises made above.As the fi rst quarter has commenced on levels similar to the last quarter of 2022,which is a strong signal given typical seasonal patterns,we confi rm our guidance that the Group is confi dent in its ability to meet market expectations.ConclusionThe annual

90、 report we release today is evidence that the strategy of diversifi cation within our business model is continuing to deliver growth in ever-disrupted markets.Despite the world changing rapidly and the emergence of new and material headwinds,we were able to increase profi t guidance at the start of

91、the fi nancial year,and then again adjust upwards in March to refl ect the acquisition of VGL Publishing AG and then with each quarterly result.The Group has listened to its stakeholders and made progress on Board composition and remuneration during the year.Our business has a true competitive advan

92、tage in our scale,leadership positions,technology and operating model.While the ongoing focus of the team is on execution,the relevance of our content and the quality of our audiences is what underpins our success.I am incredibly proud of all our colleagues,as they have adjusted to our rapidly chang

93、ing world.It is with their ongoing support that we have managed to deliver record results despite a more challenging macroeconomic backdrop.We remain focused on executing our strategy,delivering value to our audiences,and continuing to achieve success.I am confi dent that with our teams ongoing dedi

94、cation and support,we will be able to navigate any future challenges that come our way.Michael RiedlChief Executive Offi cer24 March 2023 15CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportOur business modelCentralNics strength and organic gr

95、owth is built on a foundation of excellent resources focused on building value in a sustainable mannerInputsHow we do itOur peopleCentralNic benefits from an enormous depth of talent across the business with considerable and deep industry expertise.Our segmentsDriven by our strategic prioritiesUnder

96、pinned by our valuesOur missionTo help as many online consumers as possible to make the right choices when shopping online or navigating the webOnline Marketing Creating privacy-safe and AI-generated online consumer journeys that convert general interest online media users into confident high convic

97、tion consumers through advertorial and review websites.Online PresenceA critical constituent of the global online presence and productivity tool ecosystem,where we serve as the primary distribution channel for a wide range of digital products.Our technologyCentralNic is known for its excellent techn

98、ology solutions supported by large in-house product,engineering and operations teams.Our pioneering omni-channel platform provides every type of customer with world-class solutions.Our operational structureThe Groups finance,people,product,project management,integrations,technical and operations sta

99、ff are concentrated in Germany and Poland,with regional offices in relevant markets across five continents.A truly global operation,CentralNic services customers in almost every country in the world.Our global perspectiveCentralNics globally diverse acquisitions,people and operations lend a unique p

100、erspective to the Group.Organic growthFocused bolt-on M&AOperating leverageSustainable cost of capitalImpactOwnershipCollaborationResilienceGrowth16CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportOur business model continuedFocused on sustai

101、nabilityCreating value for stakeholders Customers97%Renewal by value Investors60%Organic growth PartnersCentralNic values the relationships it has established with its trusted partners.Colleagues823Expert employees Regulators and governmentsA number of CentralNic entities areaccredited by ICANN and

102、the Group increasingly provides its services to governments around the world,helping them to make progress on their digital economy journey.Communities1,056,000Grants donated through the SK-NIC FundEnvironmentSee more on our environmental strategy and carbon neutrality on pages 23 to 29CommunitiesSe

103、e more on how we support local communities on pages 37 and 38Diversity andinclusionSee more on our approach to diversity and inclusion on pages 33 and 34GovernanceSee more on how we are creating long-term sustainable success on page23 and pages 48 to 5117CentralNic Group Plc|Annual report 2022Additi

104、onal informationFinancial statementsGovernanceStrategic reportOrganic growthNew customer wins,supporting existing customers,and cross-sellingour services.Launching new products andcontracting with newsuppliers.Notes:As CentralNic has made a number of major acquisitions in recent years,the Group also

105、 prepares pro forma comparable financial summaries including all businesses currently controlled by CentralNic to effectively isolate organic growth.2022 achievements:Record organic revenue growth of 60%in 2022 demonstrates the success of the Groups strategy of investing during the pandemic.The Fina

106、ncial Times listed CentralNic among the top 250 fastest-growing companies and among the top 50 fastest-growing Technology companies in Europe.One criteria for inclusion is that revenue growth must have been primarily organic.Further,other companies included in the ranking are significantly smaller t

107、han CentralNic,which demonstrates growth at an unusual rate for companies of our size.Priorities for 2023:Dedicated business development teams established in late 2022 to continue to drive incremental revenues.Organic growth to be driven by cross-selling of services through capitalising on capabilit

108、ies of newly acquired entities.Link to KPIs:123456810111213Our strategyOur core growth strategy balances a focus on organic growth with our leadership in consolidating the global provision of our online servicesOperating leverageAchieve cost savings in future periods by successfully integrating acqu

109、iredbusinesses.Operational gearing is expected to enhance margins as the Group scales.Notes:M&A activity targets specific financial synergies to ensure that the cost base continues to be wellcontrolled.2022 achievements:In 2022,the Group companies have only spent 52%of the net revenue they generated

110、 on internal costs,down from 61%in 2021;a material improvement in operational efficiency.Priorities for 2023:The growth sparked by the Companys investment in talent and systems is expected to materially continue whereas the growth in operational expenditure will be at a lower rate incomparison.Link

111、to KPIs:123456818CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportOur strategy continuedCompetitive cost of capitalReduce interest rate on historic debt(latest effective interest rate 6%).Retain net debt/EBITDA ratio of 4x.Notes:Interest vari

112、es in line with the secured overnight financing rate(SOFR)administered by the Federal Reserve Bank of New York and also with the Groups operating leverage.2022 achievements:Successful refinancing of the senior secured bonds issued between July 2019 and March 2022;interest margin reduced from 7%above

113、 EURIBOR to 2.75%-3.55%above SOFR;maturities extended from July 2023 to October 2026;obtained USD 100 million committed RCF.Inaugural share buyback of GBP 4 million launched on 30 December 2022.Priorities for 2023:Optimising the mix of debt and equity for sustainability.Link to KPIs:3479Focused bolt

114、-on M&AWebsite and e-commerce targets matching CentralNics current recurring revenue,cash generation profile.Strong pipeline of attractively priced deals.Notes:CentralNic has cultivated excellent capabilities in sourcing,completing and integrating transformative acquisitions,integrating them into ma

115、rketplaces enjoying network effects,anddrivingorganic growth.2022 achievements:Acquisition of VGL,Aporia and Fireball Search GmbH(Online Marketing segment)in March2022,September 2022 and February 2022(respectively).Acquisitions of IPMC and.ruhr TLD(Online Presence segment)in October 2022 and January

116、2022(respectively)and the purchase of a niche website portfolio in December 2022.Priorities for 2023:Execute on strong pipeline for future acquisition targets to ensure the business continuesits trajectory,scaling the ranks of the global leaders in our industry.Link to KPIs:1234567891011121319Centra

117、lNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportKey performance indicators1Revenue growth (USD m)2Net revenue/gross profit growth (USD m)3Adjusted EBITDA growth (USD m)4EBITDA%of net revenue/gross profit5Organic revenue growth(USD m)The Group acti

118、vely measures and monitors performance using a variety of financial and non-financial key performance indicatorsWhy its important Revenue increase is the key indicator of the Groups growth2022 performance60%growth achieved organically and the remainder through M&A activityOutlook Analyst expectation

119、s of 2023 revenue currently range from USD 771.8 million to USD 833.7 millionWhy its important Principal indicator of core profitability given pass-through nature of some revenue streams2022 performance30%growth in 2022Outlook Analyst expectations of 2023 net revenue currently range from USD 178.2 m

120、illion to USD 193.7 millionWhy its important Given the significant pass-through costs,such as traffic acquisition costs,the net revenue ratio gives a good indication of the operating leverage in the business model this ratio improved markedly from 39%in FY21to 48%2022 performance24%growth in 2022Out

121、look For FY23,we would expect the EBITDA to gross profit ratio to remain c.48%Financial:728.22022410.52021+77%177.72022118.52021+30%48.4202239.02021+24%Why its important Adjusted EBITDA is the key measure of the Groups operational excellence 2022 performance86%growth due to strong revenue growth and

122、 focus on cost controlOutlook Analyst expectations of 2023 growth currently range from USD 90.9million to USD 97.8 million86.0202246.32021+86%Why its important Given the highly acquisitive nature of the Group,organic growth is a key metric illustrating the underlying revenue growth of the Group2022

123、performanceRecord organic growth of 60%in2022Outlook 2022s investments are expected to continue to drive organic growth into 2023743.12022465.52021+60%20CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportKey performance indicators continuedWhy

124、its important Net debt deleverage expected overtime2022 performanceReduction despite significant investing cash flows in 2022Outlook Deleverage(measured by net debt/EBITDA)and further improvements to interest cover will continue despite debt raise for VGL acquisitionFinancial:56.6202281.42021-30%Why

125、 its important Cash balances are monitored weekly for working capital and M&A funding requirements2022 performanceCash reserves increased by 69%to USD 94.8 million at end of 2022Outlook Continued operational cash conversion greater than 100%expected in 2023Why its important Operating profit is a mea

126、sure of a companys earnings excluding accounting items such as one-time charges,interest and taxes that may skew profit data 2022 performanceOperating profit increased by 171%to USD 33.6 million at the end of 2022Outlook Continued profit growth following accretive acquisitions and organic growth in

127、202394.8202256.12021+69%33.6202212.42021+171%7Cash balance (USD m)8Operating profit(USD m)9Net debt deleverage (USD m)Why its important Measure of the underlying growth inearnings per share2022 performance73%growth is testament to organic and M&A-led growth of the GroupOutlook Growth expected from c

128、ontinuing operational leverage benefits and accretive acquisitions in FY2319.81202211.462021+73%6Adjusted diluted EPS(cents)21CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportKey performance indicators continuedWhy its important Indicative of

129、 the Groups total audience2022 performanceStrong growth,in particular from social media,following the audience to short form videosOutlook Being platform agnostic,CentralNic will nimbly follow the migration of the mass audiencesWhy its important Indicative of how good CentralNic isat monetising traf

130、fic,creating a competitive advantage2022 performanceNotable improvements made through optimisation of algorithmsOutlook CentralNic is expected to maintain current levels of revenue per thousand sessionsWhy its important Indicates whether CentralNic is winning market share 2022 performanceThe number

131、of processed domains decreased by 2%as the Group prioritised higher value opportunities over volumeOutlook Further market share gain by volume expected in 2023Why its important Indicative of the stability of our conversion of underlying activity2022 performanceGrowth of 5%achieved in 2022Outlook Sus

132、tainable growth expected as we continue to bring efficiencies to the domain subscription processNon-financial:4.6bn20222.6bn2021+77%105.0202276.42021+37%12.3m9.92022202212.6m9.420212021-2%+5%10No.of visitor sessions(Online Marketing)(#)11Revenue per thousandimpressions (Online Marketing)(USD)12No.of

133、 domain registration years (Online Presence)(#)13Ave.revenue per domainyear (Online Presence)(USD)22CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportSection 172(1)statementThe Board recognises its responsibility to take into consideration the

134、 needs and concerns of all our stakeholders as part of our discussion and decision-making processes,and in this regard,we welcome the fresh stance under section 172 of the UK Companies Act 2006(s.172)as part of the QCA Corporate Governance Code.The Directors have identified the Companys key stakehol

135、ders as its:Shareholders and investors,employees,customers,suppliers,regulators and governmental bodies,the environment and the wider community.Building positive relations with these stakeholders,treating them well and with respect and managing our operations in a sustainable way,is essential to the

136、 success of the business.The Board considers the interests of the Groups employees and other stakeholders,including the impact of its activities on the community,environment and the Groups reputation,when making all decisions.TheBoard,acting fairly between members,and acting in good faith,considers

137、what is most likely to promote the success of the Group for its Shareholders in the long term.The Groups stakeholder engagement activities help to inform the Boards decisions.By thoroughly understanding our key stakeholder groups,we can factor their insights and concerns into boardroom discussions.S

138、hareholders andinvestorsEmployeesCustomersThe Board regards effective communication with Shareholders asessential.Relations with Shareholders are managed principally by the Chief Executive Officer,Chief Financial Officer and theChairman.The Group recognises that high levels of employee engagement le

139、ad to lower levels of attrition,higher levels of productivity and a more enjoyable work environment,where people are happier and are more likely to thrive.The Group engages with customers across the globe through its dedicated customer support function.Engaging with our customers and understanding t

140、heir needs is critical to delivering on our strategy,ambition and purpose.How we engage Regular meetings with institutional investors and analysts during the year Individual or collective meetings between major Shareholders and the Board Annual General Meeting(AGM)Feedback from nominated advisers an

141、d joint brokers on Shareholder opinions Group websiteHow we engage Regular town halls Ad hoc news,shoutouts and kudos through our Human Resources Information System Pulse and targeted surveys Group engagement surveys Internal newslettersHow we engage Customer support function Newsletters Customer sa

142、tisfaction surveysSuppliersRegulators and governmentsCommunitiesOur suppliers are key to the operational success of ourCompany.Our relationship with governments and regulators is important to ensure policies are developed in the interests of our customers and the industry,while also enabling them to

143、 better understand the positive impact we can have on the environment and communities we operate in.The Board is committed to improving sustainability and helping communities thrive by positively contributing both socially and economically.Building and preserving relationships with the communities w

144、e serve is also core to our commercial success and supports our purpose of enabling our customers to realise their aspirations online.How we engage Supplier audits and assessmentsHow we engage Participation and attendance at events with government and regulatorsHow we engage Through engagement with

145、charities and non-governmental organisations Participation in key international forums and working groups23CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportEnvironmental,social and governance(ESG)IntroductionWe believe that the first step to

146、influencing positive change as abusiness is by making a strong commitment to our key stakeholders.This keeps our progress firmly aligned with the Groups vision and direction and by standing by these commitments,this group of stakeholders who will hold us accountable and willhelp us to embed our focu

147、s on ESG for years to come.There are a number of initiatives that we are proud tohave undertaken and prioritised during the year,which are summarised on the following pages.Governing climate-related risks andopportunitiesBoard oversight of climate issues The Board establishes CentralNics purpose,vis

148、ion and strategy with due consideration given to all material influencing factors,including those related to climate change.The Boards assessment of climate-related matters is informed through presentations across dedicated strategy sessions and within Board meetings,which cover the substance of the

149、 physical and transitional opportunities and risks associated with climate change.The Boards assessment of risk is reflected both in the strategic decisions it takes,and in the identification of Group principal risks and emerging risks which have the ability to affect achievement of agreed strategic

150、 objectives and,in turn,long-term success.Board Committee support is provided on climate-related issues in the following ways:the Remuneration&Nominations Committee ensures the Board possesses the correct depth and balance of capabilities to support CentralNics long-term position,including the exper

151、tise to assess the impact of climate-related change;and the Audit Committee supports the Board on matters relating to financial reporting,internal control and risk management.The Committee reviews the integrity of CentralNics climate-related financial reporting and the process used to develop Centra

152、lNics TCFD-aligned disclosures.The Board-agreed division of responsibilities across key areas of CentralNics governance framework are set out in the terms of reference of the Board Committees,and the role profiles for key Board roles.Role of Senior ManagementStrategy is implemented by the Group Exec

153、utive Directors and Senior Management Team through the operational management of CentralNics Business Units and monitoring of performance in line with agreed plans.This includes ensuring business decisions are being taken in line with the parameters set by the Board and for monitoring new and emergi

154、ng issues that require escalation.The Chief Financial Officer(CFO)retains responsibility for the management of climate-related initiatives under agreed strategy and,in turn,driving progress.In support of this,the CFO agrees the annual objectives for the Head of Compliance,who is a direct report.The

155、Head of Compliance advises the Board,Group Executives,Senior Management Team,Group Audit Committee and Business Units on climate-related matters and progress under the various projects.The Group Audit Committee monitors all Group risks on a periodic basis and ensures that the Business Units are mana

156、ging the risks for which they are responsible.The Audit Committee has overall responsibility for ensuring the right mechanisms are in place for managing all risks,including climate-related risk and opportunities.Engaging with stakeholders to inform strategyThe Group has conducted a materiality asses

157、sment during the year to help us understand which sustainability-related issues are most relevant to our internal and external stakeholders.The results of the materiality assessment are disclosed in the Strategy section of the TCFD disclosures on page 24.Embracing future reportingstandards The Group

158、 is welcoming the upcoming Task Force on Climate-related Financial Disclosures(TCFD)requirements and has proactively adopted them.You will find the TCFD related disclosures on pages 23 to 29.Read more about:The Groups goals,strategy andbusiness model in the strategic reportHow we manage riskCorporat

159、e governancepages 15 to 18pages 42 to 45pages 48 to 51Our Board sees investing as key to address ESG issues which affect the Groups stakeholders24CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportEnvironmental,social and governance(ESG)continu

160、edOur sustainability strategyMateriality We have conducted a materiality assessment to identify the material and emerging ESG issues relevant to our business,ourstakeholders and the societies in which we operate.CentralNic performed the materiality assessment according to GRI2021.This exercise allow

161、ed the Group to identify the most significant impacts on the economy,environment and people,including human rights,as a result of its activities and business relationships.The process comprises four steps.1)Understanding the organisations context The Group conducted a mapping exercise that defined a

162、 preliminary list of material topics based on industry-specific frameworks such as SASB Software and IT services and SASB Internet and Media services.Also,a benchmark of the most relevant peers and stakeholders was conducted.This process helped the organisation to consider the impacts commonly assoc

163、iated with the sector.This phase took place in a series of workshops guided by experts where critical organisation members were involved.2)Identification of impactsThe organisation involved internal and external stakeholders in identifying impacts.A survey was used to capture the impacts dimension(e

164、nvironment,economy and people),the type of impact(positive,negative,actual and potential)and the likelihood of the impact occurring.The total participation rate of the survey was 61%,where internal stakeholders rate was 64%and external stakeholders 50%.The likelihood represents the chance of an impa

165、ct happening.The organisation used a qualitative method to measure this concept.The hierarchy used was:not likely,likely and very likely.The organisation validated the survey results through round table discussions moderated by a panel of experts and interviews with relevant organisation members and

166、 external stakeholders.3)Assessment of significanceCentralNic assessed the significance of the impacts based on their severity defined by their scale,scope and irremediable character.The organisation assigned a score for each topic and category(1:low,2:medium,3:high).The concept of scale refers to h

167、ow severe a negative impact is(orcould be),or how positive an impact is(or could be).The scale of a negative impact can depend on whether the impact leads to non-compliance with laws,regulations or authoritative intergovernmental instruments.The organisation also considered the context in which the

168、impact took place to determine the scale scoring.The scope represents how widespread the impact is(or could be).This typically refers to the number of individuals or the extent of environmental resources that are or could be affected.Irremediable character means how difficult it is for the organisat

169、ion to counteract or make good the resulting harm.This concept applies only to negative impacts.4)PrioritisationThe topics were prioritised based on the average score of scale,scope and irremediable character(when applicable).The Group has prioritised negative impacts and positive impacts separately

170、.The threshold used to consider a topics significance corresponds to those topics scored from medium to high.Prioritisation of negative impactsMaterial topicData security2.67Customer privacy2.33Managing systemic risks from technology disruptions2.00Intellectual property2.00Significance scoreGHG emis

171、sions1.33Energy1.333.002.002.501.501.000.500GHG emissionsEnergyManaging systemic risks from technology disruptionIntellectual propertyCustomer privacyData security25CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportEnvironmental,social and gov

172、ernance(ESG)continuedOur sustainability strategy continuedMateriality continuedPrioritisation of positive impactsThe Group is committed to addressing todays sustainability challenges and opportunities,adjusting our business strategy accordingly.Understanding the needs of key stakeholders and the exp

173、ectations they have is central to ensuring CentralNic prioritises the most critical issues and operates a responsible and sustainable business.Our sustainability strategy was developed around our priority sustainability topics and associated Sustainable Development Goals(SDGs).We sought stakeholders

174、 views in determining themateriality of different topics,having undertaken an in-depth analysis of the SDGs to identify opportunities for shared value creation.Our materiality assessment followed best practice,involving our leadership team and a broad range of external stakeholders.The Groups sustai

175、nability framework aligning with the UN Sustainable DevelopmentGoals The 17 Sustainable Development Goals(SDGs)were launched in2015 by the United Nations(UN),aiming to end poverty and create a life of dignity and opportunity for all.TheSDGs define global sustainable development priorities and aspira

176、tions for 2030 and seek to mobilise global efforts among governments,business and civil society around a common set of targets.Group activities align most closely with six UN SDGs covering thethemes of resilient,inclusive,sustainable and innovative industrialisation,together with good health and wel

177、lbeing,genderequality,decent work and economic growth,responsible consumption and production and climate action.We have already made progress towards advancing these goals.The actions we have taken and our performance across these areas are covered over the following pages.Aligning our sustainabilit

178、y strategy with the UN SDGs will help guide our future activity to ensure we continue to create sustainable,shared value for all stakeholders.1.000.500Non-discriminationTraining and educationIntellectual propertyCorporate governance,ethics and complianceDiversity and equal opportunitiesDiversity and

179、 equal opportunities2Non-discrimination2Corporate governance,ethicsand compliance2Training and education2Material topicSignificance scoreIntellectual property22.002.501.5026CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportEnvironmental,social

180、 and governance(ESG)continuedOur sustainability strategy continuedThe Groups sustainability framework aligning with the UN Sustainable Development Goals continuedGood health andwellbeingResponsible consumption and productionClimate actionGender equalitySustainable developmentDecent work and economic

181、 growthHealth and wellbeing are embedded in CentralNics strategic people priorities,and contribute to its core sustainability missionCentralNic makes sustainability a key factor when managing suppliersCentralNic is taking action to reduce its GHG emissions whilst also investing in green energy proje

182、ctsCentralNic is committed to ensuring equal opportunities for all,irrespective of gender,and to maintaining a culture of inclusion,inwhich diversity is seen as a strengthCentralNic is at the forefront of innovation within the online marketing and domain industry.Our mission is to help online consum

183、ers make informed choices,demonstrating our commitment to effective digital work and social practices,such as dataprivacyCentralNic employs over 800 employees across the globe.Our employees are crucial to delivering our sustainability goals and mission.CentralNic has been for many years,and continue

184、s to be,on a steep growth trajectory.Our people are central to helping us continue to build our services and we are committed to providing the best and most inclusive environment in which to work.UN GoalsHow CentralNic contributes27CentralNic Group Plc|Annual report 2022Additional informationFinanci

185、al statementsGovernanceStrategic reportEnvironmental,social and governance(ESG)continuedClimate-related financial disclosuresThe Task Force on Climate-related Financial Disclosures(TCFD)was established by the Financial Stability Board to improve reporting of climate-related risks and opportunities.C

186、entralNic has structured its climate disclosures according to the TCFD recommendations,believing that good quality information about its climate-related risks and opportunities supports Shareholders to make long-term investment decisions.A big part of holding ourselves accountable is taking a leader

187、ship position on disclosure.We adopted TCFD reporting ahead of timeon a voluntary basis and will continue to be proactive in ourreporting.RecommendationGovernanceDisclose the organisations governance around climate-related risks and opportunitiesStrategyDisclose the actual and potential impacts of c

188、limate-related risks and opportunities on the organisations businesses,strategy and financial planning where such information is material.a)Describe the Boards oversight of climate-related risks and opportunities.b)Describe managements role in assessing and managing climate-related risks and opportu

189、nities.a)Describe the climate-related risks and opportunities the organisation has identified over the short,medium and long term.b)Describe the impact of climate-related risks and opportunities on the organisations businesses,strategy and financial planning.c)Describe the resilience of the organisa

190、tions strategy,taking into consideration different climate-related scenarios,including a 2C or lowerscenario.RecommendationRisk managementDisclose how the organisation identifies,assesses and manages climate-related risks.Metrics and targetsDisclose the metrics and targets used toassess and manage r

191、elevant climate-related risks and opportunities where such information is material.a)Describe the organisations processes for identifying and assessing climate-related risks.b)Describe the organisations processes for managing climate-related risks.c)Describe how processes for identifying,assessing a

192、nd managing climate-related risks are integrated into the organisations overall risk management.a)Disclose the metrics used by the organisation to assess climate-related risks and opportunities in line with its strategy and risk management process.b)Disclose Scope 1,Scope 2 and,if appropriate,Scope

193、3 greenhouse gas(GHG)emissions,and the related risks.c)Describe the targets used by the organisation to manage climate-related risks and opportunities and performance against targets.28CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportEnergy c

194、onsumption reduction Streamlined Energy and Carbon Reporting(SECR)Under the Companies(Directors Report)and Limited Liability Partnerships(Energy and Carbon Report)Regulations 2018,weare mandated to disclose our UK energy use and associated greenhouse gas(GHG)emissions.Specifically,and as a minimum,w

195、e are required to report those GHG emissions relating to natural gas,electricity and transport fuel,as well as an intensity ratio,under the SECR regulations.Methodology CentralNic Group Plc appointed ClimatePartner,a leading carbon and energy management company,to independently assess its GHG emissi

196、ons in accordance with the UK Governments Environmental Reporting Guidelines:Including Streamlined Energy and Carbon Reporting Guidance.ClimatePartner has conducted the 2022 carbon footprint calculation on behalf of CentralNic including activities relevant totheir Streamlined Energy and Carbon Repor

197、t for FY22.Theactivities of all CentralNic global sites and full-time employees(FTEs)were included in the calculation.The calculation was conducted in accordance with the GHG Protocol Corporate Standard and HM Governments Environmental Reporting Guidelines(March 2019).CentralNic previously reported

198、its GHG emissions using the financial control methodology but this year has decided to move tothe operational control methodology.The operational control methodology allows the Group to account for 100%of its emissions from those operations that it has control over even ifitdoes not have authority t

199、o make changes.Furthermore,the Group has improved the quality and availability of data during the assessment process to ensure that a clear picture is provided on its GHG emissions.Better quality data will help the Group understand the major drivers of its emissions and make its carbon reduction pla

200、ns more impactful.This gives a more accurate picture of the Groups impact and a better baseline for future carbon reduction efforts,but also results in the previous years emission data not being comparable.Results This is the third year CentralNic Group Plc has assessed its emissions.In 2022,the hyb

201、rid model of working was adopted,which saw more employees commuting to the office as well as restrictions being lifted on travel.The UK operations have also grown considerably.Finally,the allocation of emissions has changed due to the change of methodology which results in the previous years data no

202、t being comparable but provides a better baseline for future years.As a result,emissions increased during the year.The table below shows only the SECR required elements for the UK operations.Element 2022(tCO2e)2021(tCO2e)Direct emissions(Scope 1)60.1Indirect emissions(Scope 2)Purchased electricity 8

203、.9 8.6Total tCO2e(Scope 1 and 2)69.08.6Other indirect emissions(Scope 3)Employee-owned car travel 2.8 0.5Other indirect emissions(Scope 3)Transmission and distribution of electricity 5.0 0.8Total tCO2e(Scope 3)7.81.3Gross total tonnes of CO2e76.89.9Tonnes of CO2e per UK employee0.7 0.1Tonnes of CO2e

204、 per UK revenue(inUSD million)2.0 1.5Total energy consumption(kWh)334,18842,719Environmental,social and governance(ESG)continuedScope 3 emissions are indirect GHG emissions which we cannotcontrol but may be able to influence.As Scope 3 emission reporting is an ever-evolving space,CentralNic is looki

205、ng at the best way to collect this information going forward.This year has seen an increase in our carbon emissions,partly due to the increased quality of data collected around Scope 3 emissions andthe changes in the methodology used to calculate carbon emissions.Inthe meantime,we continue to encour

206、age all our suppliers to reduce their carbon footprint and take sustainability into consideration throughout the supplier management process.Tree plantation programmeCentralNic continued to contribute in 2022 to a global tree plantationprogramme,Eden Reforestation Projects(EFP).In this effort,Centra

207、lNic helped EFP in its mission to plant trees around theworld in Ethiopia,Madagascar,Nepal,Haiti,Indonesia,Mozambique,Kenya and Central America.29CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportEnvironmental,social and governance(ESG)continu

208、edEnergy consumption reduction continuedGroup GHG emissionsWe have also assessed the emissions of the Group as a whole using the same methodology.The table below summarises the GHG emissions of the Group.There are a few factors that contributed to the increase in carbon emissions in 2022,including t

209、he growth of the Group during the year.2022 was also the fi rst year after the COVID-19 lockdowns that we opened up our offi ces for our employees,implemented hybrid working and lifted the internal restrictions on travel.Finally,the methodology used to calculate emissions was changed in 2022 from th

210、e fi nancial model to the operational model and included more data on our Scope 3 emissions worldwide.The operational model allows for more accurate emissions estimates than the fi nancial model and,as such,this years data more accurately represents the impact of the Group on the environment albeit

211、not comparable to last years data as a result.Taking the above into account we have also calculated the same metrics for the Group,adjusting for travel and employee commuting,which we feel makes the numbers more comparable:Carbon neutrality Following the review conducted by ClimatePartner on the GHG

212、 emissions of the Group,CentralNic decided to offset these emissions by investing in clean cookstoves,nationwide in Uganda.You will fi nd more information on this project and its impact here:https:/ is a certifi ed Carbon Neutral Company.Element 2022(tCO2e)2021(tCO2e)Gross total tonnes of CO2e2,9981

213、,072+180%Tonnes of COe per Group employee4.11.7+141%Tonnes of CO2e per Group revenue(in USD million)4.12.6+58%Element 2022(tCO2e)2021(tCO2e)Gross total tonnes of CO2e adjusted(excl.travel and employee commuting)1,4831,072+38%Tonnes of CO2e per Group employee2.01.7+18%Tonnes of CO2e per Group revenue

214、(in USD million)2.02.6-23%Energy effi ciencyWe take our carbon reduction commitments seriously and have already started taking steps to ensure that there is a reduction on the intensity metrics of our carbon emissions in the coming years.Some of our goals for 2023 to improve energy effi ciency are:w

215、e aim to switch all sites to renewable energy in an effort toreach net zero for our Scope 2 emissions.As of 2022,approximately 25%of our sites operate on renewable energyalready;given that we are embracing the hybrid working model,theGroup will also be closing some of its offi ces in 2023 in an effo

216、rt to reduce Scope 3 emissions as they relate to employee commuting.We will further look into employee incentives for greener commuting alternatives to the remaining sites as well as using green energy when homeworking;and our travel policy continues to allow only essential business travel and encou

217、rage employees to use greener methods of travel where available.As a result we expect to see a reduction in the emissions related to business travel.30CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportEnvironmental,social and governance(ESG)co

218、ntinuedOur people and cultureWe are a complex group of many legacy companies and during 2022 we built on past work to make further strides uniting everyone behind a common purpose,vision and clear values.Ouraim is to transform and underpin our over-arching organisational culture and to ensure we hav

219、e the capabilities we need to be truly future fit.This work continues into 2023 as we build for future growth through appropriate focus on synergies andefficiency across theGroup.The executive team is committed to building a culture,purpose and heartbeat that our people feel proud to be part of and

220、are motivated to deliver the results our stakeholders deserve.Our talented and dedicated people are central to our success and as we further embed our culture and grow our capabilities to deliver our strategy,our employees wellbeing,happiness,pride and spirit of togetherness remain paramount.In 2023

221、,we will continue to concentrate on employee engagement to create an inspiring culture that we are immensely proud of and where all our people feel valued and empowered to be their best selves.Our people,financial and sustainability goals for 2023,translated into corporate objectives and key results

222、 on which we will be measured,will continue to support our Company performance,ambition and purpose.Our Culture Ambassadors have continued to build on their work in2021,helping to embed our new values in the wider Group with various activities,providing the values lens on our new initiatives.Activit

223、ies have included competitions around our new values#growth and#resilience.Our now annual March into March competition,this time comprising teams across the global business to help people feel better connected,both encouraged and created opportunities for people to(re)build their personal networks a

224、cross the wider business,something that was curtailed during the pandemic.Attraction and retention Belonging We offer everyone the opportunity to grow and thrive every single day.We are a people organisation where relationships matter and people feel they belong.We strive to have a kind and caring c

225、ulture and go out of our way to ensure that people feel supported by working hard to create the conditions for everyone to do their bestwork.Very often our people chose to stay here for many years;in fact,more than 30%have more than five years tenure and just under 100 people have more than ten year

226、s in the Group.Others chose to rejoin as they miss our unique environment,where a collegiate and collaborative atmosphere marry perfectly with our ambitious performance andgrowth goals.We understand why people return and we are delighted when they do.In our most recent employee engagement survey we

227、have a score of 76%,based on responses to the statement:“I would recommend CentralNic as a great place to work”.To keep us true to our word,we regularly take the pulse of our business,listening to what our people think and using this information to make the improvements we need to.We are looking for

228、ward to the results of our 2023 survey so we can ensure we are continuing to build a better working environment where we continuously improve together.Given our many acquisitions,in 2022 we were pleased to see an engagement of 63%but we know this is something we need to concentrate on during 2023.We

229、 hopefully anticipate a positive increase in this percentage in our next engagement survey.However,after atough global talent market in 2022,whatever the results,both our belonging and engagement measures will remain akey focus for us in2023.Our evolving future flexible wayofworking During 2022 we d

230、ecided to purposefully design and plan our way out of the pandemic and create a way of working that supported ahigh performance culture,enabling us to be our best,whilst delivering for all our stakeholders.To do this we listened to everyone,everywhere,and teams have together created their culture ca

231、nvases,determining how they candeliver their best work taking the things they do best together and the things that are best done without interruption.Creating a business where work is purposeful,rewarding and fun31CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGover

232、nanceStrategic reportEnvironmental,social and governance(ESG)continuedOur people and culture continuedOur evolving future flexible wayofworking continuedIn 2023 CentralNic will be enabling several opportunities to come together during the year whilst also being mindful of our impact on our planet.In

233、 2022 we invested in our technology to further improve our working practices and harmonise our businesses under the one collaborative tool.Social connectivity remains significant for our people and therefore individual teams,as well as the Group,are working hard to ensure our people come together on

234、 a regular basis to engage,collaborate,innovate and of course have fun.Importantly,our working practices are being increasingly harmonised with fit-for-purpose processes and will be measured by our performance against our OKRs which help ensure everyone is aligned and concentrating on the things tha

235、t will deliver our strategicgoals.2023 kick-starts the programme of aligning our office locations andfacilities to better support our flexible working model,withsome inherited offices closing as they no longer support our needsand creating more user-friendly hubs in key locations.Ouraim is to ensure

236、 everyone has access to flexible collaboration space supported by state-of-the-art technology,ensuring everyone stays connected wherever they are and reducing the environmental impact of unnecessary travel.All office refurbishment plans will support our commitment to minimise the environmental impac

237、t of our footprint,both during and after any changes.Additionally,as part of any redevelopment or selection of co-working spaces,we plan to ensure our spaces have proper soundproofing,muted colour palettes and softer lighting and acoustics to create working environments in which neurodiverse team me

238、mbers can thrive.These improved working spaces will clearly benefit our people and any money saved can be allocated to supporting our people with additional costs incurred when working more frequently from their home offices,especially in times of ever-increasing costs of living.Health and wellbeing

239、 Our approach to health in the workplace recognises that it is a complex blend of physical,psychological and social factors.We offer a variety of programmes that support employee wellbeing and encourage healthier lifestyle choices for all of lifes everyday moments.Responding to questions in our futu

240、re of work survey,86%of employees strongly agreed that“their manager genuinely cares about my wellbeing”.This year our managers received training around the importance of looking after their mental health as the first step to helping recognise issues in others and the tools available to support them

241、 when needed.We recognise that whilst our employees predominantly prefer to work remotely,many people have struggled to find the right rhythm between work and personal life.To address this,our manager-facilitated team sessions helped teams determine their most effective future working models togethe

242、r with working practices,rituals as well as commitments to their stakeholders and to each other.We believe supporting our people to take ownership is critical,not just to maintaining a sustainable way of working,but also in ensuring our people are happy,engaged and motivated.Through Telus Health,our

243、 global employee assistance programme,we provide employees and their dependants additional resources and advice on how to deal with complex work,health,financial or life situations.It is completely confidential and offers tailored support in case of need with an experienced adviser available 24/7.20

244、22 continued to be a challenging year for employees.The pandemic and the changing world economic situation have tested our resilience and that of our people.We have seen encouraging signs of positive employee behaviour around engagement with health and wellbeing with over 150 employees taking part i

245、n our March into March competition to get active together,encouraging teams to socially connect across the business,with over 4.3 million steps recorded.Once again,recognising some people have struggled to switch off during 2022,we facilitated an annual shutdown over the 2022 year-end holiday season

246、,gifting everyone an additional day off.“We listened to everyone,everywhere,enabling us to purposefully design and create our future way of working.”32CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportEnvironmental,social and governance(ESG)co

247、ntinuedOur people and culture continuedStay informedOne area of improvement identified in our 2021 survey was the need to better explain what we do as a business and our future plans.Toaddress this,in 2022 we hired an internal communications expert to help us better communicate with everyone in our

248、business,helping people feel more informed,motivated and engaged.Withthe launch of CentralNic-Engage in Q4 and our revamped internal newsletter,we continue to evolve our efforts to keep in touch.Wehave actively solicited feedback after all key events such as town halls and have held live Q&A session

249、s at the end of the every town hall.Thefeedback is extremely valued and informs how we shape the areas we concentrate on as we move forward.In 2023,we will be excited to launch our Company intranet site,CentralNic University,exploring the many opportunities this will provide us to ensure a fast and

250、relevant symbiotic flow of information,ensuring our people feel at all times consulted,informedand able to voice their opinions.In 2021,our people told us they wanted more opportunities for learning and development to help their careers along.So we established our Learning&Development function,gave

251、everyone access to thousands of courses via LinkedIn Learning,built modules around career and growth conversations(attended by 450 last year),provided English language lessons and bespoke training for our managers to help them lead their teams into the future.Since the last survey we have also ensur

252、ed our hiring process is inclusive and far more transparent by making our roles available for everyone to see.Were happy to say that 33 people were promoted in 2022 and we have enabled 20 internal moves.Our people also said they wanted to know more about the work we do around our ESG commitments,so

253、weve shared updates on the great work financed and supported by our SK-NIC fund,our contributions to the Red Cross to support Ukraine and how were working to keep our global travel down to reduce our carbon footprint.People love our approach to flexible working,and since the survey we have enabled e

254、ven more flexibility with each team deciding how they would work based around what they do best together,what they can do better apart and working to create the moments that matter.We also enabled everyone to request time working in another country and to date many have taken advantage of this.We ha

255、ve also facilitated six relocations to other countries where we have a CentralNic payroll.Our efforts will not stop here and in 2023 we want to listen to our employees and their ideas about how to create a more diverse and inclusive working environment.Through the work already done in our hiring pro

256、cess,we want to ensure our culture and ways of working promote and support increased racial,ethnic and cultural diversity in the business.This year,despite a challenging talent market,we worked hard to ensure diverse talent shortlists for all our roles,specifically targeting key talent platforms suc

257、h as Women in Technology to attract great female talent and have ensured that our routes to market and hiring processes ensure we select the right skills for each role.“Our focus is on helping people feel more informed,motivated and engaged.”33CentralNic Group Plc|Annual report 2022Additional inform

258、ationFinancial statementsGovernanceStrategic reportEnvironmental,social and governance(ESG)continuedOur people and culture continuedOur offeringCentralNics employees are critical to the Groups success and the Board believes values-aligned hard work and dedication should be recognised and rewarded in

259、 a fair and consistent way.During 2022,more than half our roles were graded,levelled and benchmarked to the local markets,providing a clear view of our numerous inherited reward practices enabling us to design a path toalign these to CentralNics reward philosophy.2022 saw the launch of our Group var

260、iable plan,bringing existing parts of the Group under the one plan based on Company and personal performance.This move enabled over 200 additional employees to share in the short-term success of the business through cash bonuses and the longer-term growth through the increase in our share price.Our

261、2022 acquisitions will be included in2023.Additionally,our global benefits were reviewed to ensure what we offer is attractive,and more importantly,valued by our people.It was clear that by moving to a increasingly flexible way of working,office-based benefits were less attractive to many of ourpeop

262、le.In 2022 we implemented a number of changes to our overall offering,such as aligning the UK employees to a more market-competitive 25days holiday and in 2023 we are looking to continue making improvements to our employee value proposition.As part of this review,we plan to partner with a global ben

263、efits platform to provide the freedom of choice,ensuring our people get access to the benefits they personally value and which motivate them to do their best work,a goal that is of paramount importance to us.Growing our capabilitiesUnderpinning both employee engagement and a sense of belonging is ou

264、r belief in growth and development.In 2022,we made significant investments of time and money to ensure that these values were embedded in our DNA.Our employees are encouraged to take ownership of their continued personal development,#growthmindset,and our ever-available suite of online learning tool

265、s ensures people can develop.We support this with on-the-job training and targeted training provided by external suppliers where and when necessary.In 2022 CentralNic was in the top percentile of LinkedIn Learning user engagement and we facilitated over 3,000 hours of English language training,along

266、sideother internal training,which is testament to our peoplesdesire togrow.To support this,our employees are encouraged to take ownership oftheir personal development and have continuous,future-focused check-ins with their managers,helping everyone to learn from things that have not gone so well and

267、 celebrate success.Everyones work is aligned to our corporate goals through our OKR process and our individual development goals reflect both the skills we need to deliver the corporate goals as well as our personal goals.Aligningeveryone under our OKRs and facilitating robust processesto measure th

268、ese,enables our working model to succeed.We,like many companies in 2022,had to work hard to keep the right skills and capabilities in our business to maintain our workforceresilience and to not impact our ability to deliver our long-term strategy.We continue to evolve our talent development programm

269、e to ensure every employee has the tools and support to be the best they can possibly be.Internal people development programmes such as our Management Academy are underway to ensure we have good managers and to help build our future leaders pipeline.Futuremodules focus on wellbeing,diversity and inc

270、lusion,togetherwith a comprehensive programme of workshops,expert speakers,mentoring,networking and practical projects are planned in 2023.In 2023 we will be rolling out our career framework,recognising two clear growth routes to leadership,being management and professional.Our agile performance app

271、roach will support our employees as they take ownership of their personal development.We will continue to evolve our talent development to ensure we have the right skills in the business to deliver our future aspirations and a rich pool of talent ready to step up into new roles created by ourgrowth.

272、“We strive to provide exceptional growth and development for our people to attract and retain the best and brightest talents.”34CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportEnvironmental,social and governance(ESG)continuedOur people and c

273、ulture continuedTalent attraction In 2022 we also invested in our talent acquisition team,having previously relied exclusively on external agencies.The final quarter of 2022 saw only 13%of our hiring through agencies and a massive decrease in our cost and time to hire.We will continue to build on th

274、is success in 2023,including projects to grow our own talent,raising our brand recognition in the talent marketplace by engaging more purposefully with future talent and ensuring our employee value proposition is compelling.Always inclusiveWe want everyone to feel that they belong and that the Compa

275、ny isinclusive to all its employees.This means allowing ideas to be shared,celebrating our differences and similarities and empowering talent from all diversities to thrive.We have concentrated our efforts in 2022 towards raising awareness of unconscious bias in our hiring processes and the impact t

276、his can have on our business,actively working with our talent acquisition teams and hiring managers to ensure where possible we have mixed gender shortlists.For full transparency and equal opportunity,we advertise all roles internally and have a supportive process to enable our people to apply for r

277、oles.In 2022 we facilitated 33 promotions and 20 internal moves,as well as enabling six relocations to another country within ourGroup.We are very proud to have over 40 nationalities across our business,speaking more than 30 different languages.We are committed to achieving gender balance in leaders

278、hip.This year,wewere delighted to appoint our first female,Claire MacLellan,toour Group Board of Directors,and we have achieved a representation of 37%women in Senior Management positions across our business.However,we know that in this area,and indeed our overall efforts inrespect of diversity and

279、inclusion,we can do more and in 2023 have designed several programmes to ensure that we devote our efforts in this key area for improvement.The gender balance at year end 2022 was 35%female and 65%male,and whilst 35%is above industry average for women in the technology sector,this will be a focus fo

280、r the Group as we move into 2023 and beyond.We are pleased that our Senior Management team(Executive minus one)has increased its female number by approximately 12%from 27%to 37%in 2022.However,this remains below our expectations and through our new career structure,manager training and talent progra

281、mmes,we plan to further address this during 2023.Our age demographic remains diverse with our largest population between the age of 36-45(38%)with the second group in the 27-35 age bracket(34%)and 19%over 46.However,with only 7%of our global workforce younger than 27,this means we have an opportunit

282、y to extend our successful internship programme beyond Poland in 2023 to ensure we are benefiting from a tech-savvy generation to help us remain innovative and future fit.To support our desire for inclusivity,in 2023 we will be launching acampaign to encourage our people to declare their diversity i

283、nclusion data in our systems;our goal being to capture gender,ethnicity and religion,to help give us a true reflection of our employees and be able to determine our key areas of focus.With this data we will be able to introduce the lens of diversity as part of our talent review,pay progression and p

284、erformance,helping us further remove any bias from our processes.We look forward to providing more insights in future reports around our inclusivenature.Our 2023 plans will evolve our current attraction and retention strategy,particularly within our senior manager population where representation is

285、at its lowest.We will be looking at updating our existing career site tomake it more attractive and inclusive to all facets of diversity.We will be monitoring and measuring the lifecycle of our recruitment process as well as our internal promotions process to understand the barriers and put actions

286、in place to remove these.We will also be taking further steps to attract,retain and develop great female talent to build a pipeline of female leaders for the future,helping us move towards our goal of gender-balancedleadership.“Creating a culture of inclusion wherediversity is seen as a strength.”35

287、CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportEnvironmental,social and governance(ESG)continuedGroup gender diversity Senior leadership gender diversityNew joiner diversityGalle Lallement In 2023 Galle will begin an exciting newly created

288、CEO position leading the integration ofthree companies Team Internet AG,Aporia,and TrafficClub into a single cohesive pillar in the broader context of CentralNics operations.Alongside this promotion,she will also join CentralNics senior leadership team.Previously CEO of Team Internet within CentralN

289、ic Group,Galles focus was on supporting the transition from a start-up to a more established organisation during a period ofrapid growth.“Throughout my time at Team Internet,I have had the privilege of working closely with talented colleagues and leaders who have shared my commitment to driving the

290、companys growth and success,”Galle says.“As a result of our collaborative efforts,we have achieved significant milestones and established ourselves as a leading player in our industry.”“I am proud of the impact that our work has on the digital world.We are helping to shape the future of the internet

291、,and to create new opportunities for businesses and individuals around the globe.This sense of purpose and impact is deeply motivating,and it inspires us to continue pushing the boundaries of what ispossible.”59%male34%female7%unknown30%20%25%15%10%5%0%over 6556-6446-5536-4527-3518-26unknown40%35%Ag

292、e diversity63%male37%female60%male35%female5%unknownOur people and culture continued36CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportEnvironmental,social and governance(ESG)continuedFair pay and living wage We can confirm that everyone is p

293、aid a living wage or above,and through our aligned annual salary review process we ensure everyone is appropriately and fairly rewarded for their contribution.Based on our review of the 2022 salary review outcomes we know our people are paid a local market salary and we are confident we reward peopl

294、e equally for equal roles.Nevertheless,due to the variation in pay rates across different job roles,coupled with the difference in the gender composition of these roles,a gender pay gap exists.The primary driver of this is the structure of our workforce which,in line with the industry we operate in,

295、is weighted towards product and technology,where thebalance of the workforce is predominantly male(70:30).Wehope that in 2023 we will be in a position to report on our ethnicity pay gap.Being able to report on these areas is a priority going forward,toprovide our stakeholders with the transparency r

296、equired and ensuring we are truly the diverse business we strive to be.This means we have worked with our partners in 2022 to improve and implement steps to ensure equal pay and gender pay is addressed.Our annual review process contains benchmarking foreach role,ensuring salary increases are based o

297、n role,not the individual,and this more data-driven approach helps managers ensure balance on gender when allocating salary awards.Giving backIn our 2021 employee survey,it was clear that whilst we do a lot of community work in our local businesses across the business,our people were unaware of what

298、 we did.During 2022,we have proactively highlighted the many things that we do,enabling employees to support their communities through matched fundraising.Like many businesses,following the invasion of Ukraine we immediately suspended our business links with Russia and our people rose to support the

299、 many challenges faced by the people of Ukraine,providing accommodation and food to many families fleeing Ukraine to both neighbouring and countries further away.We proactively targeted our opportunities on Ukrainian job sites,offering support,sponsorship and retraining for people needing work and a

300、s a result have increased the number of Ukrainian employees during 2022.The Company values and OKRs incorporate the principles of corporate social responsibility and sustainability and help guide theGroups relationships with its clients,people and the communities and environment in which the Group o

301、perates.Ourapproach to sustainability addresses both its environmental and social impacts,supporting the Groups vision to remain an employer of choice,while meeting client demands for socially responsible partners.The Group respects local laws and customs while supporting international laws and regu

302、lations.These policies have been integral in the way Group companies have done business in the past and will continue to play a central role in influencing the Groups practice in the future.ValuesOwnershipWe take the initiative and are accountable for achieving the best outcomes for our customers,pa

303、rtners,people,company and world.ImpactDriven by a passion for the immense potential of the internet,technology and our own resources,weseek to make an even bigger and more positiveimpact.CollaborationWe nurture connections with our colleagues,customers,partners and community,underpinned by common go

304、als,transparency and inclusiveness.GrowthWe rapidly evolve to increase the scale and scope of our activities,providing an ever-growing number of customers globally an increasingly comprehensive service.ResilienceWe support the current and long-term success of our customers with dependable,recurring

305、services based on stable,stakeholder-sensitive and future proof systems and technologies.Our people and culture continued37CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic reportEnvironmental,social and governance(ESG)continuedInternet accessibilit

306、y In line with the United Nations Broadband Commissions objective of providing affordable internet connection to the 50%of the world that is still offline,CentralNic actively provides and expands its internet services in virtually all developing countries around theworld.We believe that the internet

307、 is a pivotal instrument for improving the human condition,and developing countries can benefit greatly from broader access to information,business and trade communications and effortless connectivity with people around the world.Global cybersecurity initiativesCentralNic employs multiple anti-abuse

308、 and compliance teams around the world to set policy,and monitor and enforce compliance with our own policies and those of partners and regulators,as well as applicable laws.CentralNic has adopted extensive policies for protecting users from digital fraud and other forms of cybercrime.The Group acti

309、vely co-operates with international organisations on protecting users against cyber threats.For example,the Group has partnered with eco Association of the Internet Industry on the TopDNS initiative,which aims to fight DNS abuse through education,awareness,collaboration and operationalisation.The st

310、able,safe and secure operation of the DNS has proven to be the foundation of the internet as a universal public resource.The Group has a strict policy of adhering to local laws and regulations in every jurisdiction in which it operates,and co-operates with national regulators and law enforcement,asw

311、ellas third party reporters.CentralNic has partnered with leading cybersecurity vendors andlaw enforcement organisations against global cybercrime.TheGroup regularly participates in joint efforts for taking down internet domains used by illegal actors and disabling(sinkholing)botnets operated by cyb

312、ercriminals.Data privacyData privacy is a fast-evolving subject,with regulators and industry leaders setting the pace.CentralNic stands behind the transition towards data privacy by employing dedicated staff and retaining recognised advisers to constantly stay ahead of the curve for its internal com

313、pliance.CentralNic also provides modern online marketing tools that allow advertisers to successfully promote theirproducts and services without a need to intrude into consumersprivacy.Engaging with our communities38CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGov

314、ernanceStrategic reportEnvironmental,social and governance(ESG)continuedWorld Economic ForumSince 2020,CentralNic has been an active member of the World Economic Forum(WEF),the worlds leading international non-governmental organisation for public-private co-operation.The Forums commitment to improvi

315、ng the state of the world resonates deeply with CentralNics mission to help as many people as possible realise their aspirations online.Company executives and experts work closely with the World Economic Forums team and members,including the worlds 1,000 largest companies,prominent policymakers,acad

316、emics and other leaders of society to shape global,regional and industry agendas.Among such projects are the WEFs Partnering Against Corruption Initiative and the Global Future Council on Transparency and Anti-corruption,bringing the worlds leading private-sector organisations together with governme

317、nt officials and academia to enact anti-corruption policy and recommendations,helping shape the global anti-corruption agenda.CentralNics experts are actively involved in these initiatives,contributing their expertise and insights,and participating in working meetings and discussions.ICANN ICANN,or

318、the Internet Corporation for Assigned Names and Numbers,is a global multi-stakeholder organisation that co-ordinates the Internet DNS and IP addresses devoted to the security,stability and interoperability of the global internet for the benefit of all,values that resonate perfectly with CentralNics

319、beliefs.CentralNic is therefore an active supporter of the ICANN multi-stakeholder model of internet governance and has been actively and constructively contributing as a sponsor of the ICANN meetings and as a participant in multiple policy development working groups on issues such as the developmen

320、t of a new domain name transfer policy,the introduction of the new top-level domains,and the development of a standardised registration data request service.International Telecommunication UnionCentralNic is a member of the International Telecommunication Union(ITU)which is the United Nations specia

321、lised agency for information and communication technologies.ITU is committed to connecting all the worlds people wherever they live and whatever their means which strongly resonates with CentralNics mission to help create a universally inclusive internet that improves global prosperity,equality and

322、sustainability.We are proud to be a part of ITUs mission to protect and support everyones right to communicate.Alliance of DemocraciesCentralNic is a member and active supporter of the Alliance ofDemocracies,a non-profit organisation dedicated to the advancement of democracy and free markets across

323、the globe.TheAlliance aims to solidify at-risk democracies both through international support and through locally driven economic growth.The programme supports economic reforms and entrepreneurship in emerging democracies and post-conflict areas.The initiative includes the Democracy Tech Entrepreneu

324、r Fellowship that seeks tomake technology work for democracy.Ukraine crisisIt is deeply sad to see the impact on the people of Ukraine and our thoughts are with everyone affected.As a business,we responded quickly,by suspending our business links with Russia and donated over USD 178,000 to help the

325、Red Cross get vital support to those affected.We are keeping a close eye on the evolving situation and its effect on the wider global economy.SK-NIC FundSK-NIC,part of the Group and manager of the.sk ccTLD,has made an official commitment to donate 5%of its annual revenue to support the Slovakian dig

326、ital economy and internet community.Since 2019,CentralNic has donated EUR 1,056,000(EUR 458,000 in 2022)to philanthropic technology projects,such as accessibility software to enable visually impaired people to use smartphones(Corvus),a nationwide Slovakian online suicide prevention service(IPecko),a

327、 dedicated programme launched to help girls prepare for a career in the IT sector,and a specialised training programme for school teachers,enabling them to use modern online tools and technology for remote teaching during the COVID-19 pandemic.SK-NIC Fund has supported 87 projects to date.Engaging w

328、ith our communities continued39CentralNic Group Plc|Annual report 2022Additional informationFinancial statementsGovernanceStrategic report2022 was another year of record growth for CentralNic across a broad range of key operating and financial metrics.However,the Groups reach should continue to exce

329、ed its grasp and there are always higher targets and standards which can be achieved,not only in terms of financial success but also the Groups environmental,social and governance agenda.The Group needs to be able to deliver both;the bar is higher than it was a few years ago.Robust business planning

330、 remains at the forefront of the Groups commitment to continue to learn and challenge ourselves.In the financial year 2022,the Group recorded overall year-on-year growth in gross revenues of 77%from USD 410.5 million to USD728.2 million.Organic growth was c.60%.Net revenue(gross profit)increased by

331、50%from USD 118.5 million to USD 177.7 million.Adjusted EBITDA increased by 86%from USD 46.3 million to USD 86.0 million.Adjusted EBITDA margin on a gross revenue basis increased from 11.3%in the prior year to 11.8%.Expressed as a percentage of net revenue or gross profit,hence excluding pass-throug

332、h costs such as revenue shares and registry fees,adjusted EBITDA margin increased from 39%to 48%,as the Group begins to benefit from more efficient cost structures and models,leading to increased operating leverage.The Group continues to convert its notable growth and improving margins into cash gen

333、eration,with net operating cash flow before tax of USD 85.9 million in 2022 as compared to USD 43.3 million in 2021.Cash at the end of 2022 was USD 94.8 million(2021:USD 56.1 million).Online MarketingThe fastest-growing segment of CentralNics business was Online Marketing.Gross revenue in the Online Marketing segment was USD 574.7 million,an increase of 120%over the USD 261.3 million recorded in 2