Ladies and gentlemen, welcome to Eurowag 2022 Full Year Results Announcement W.A.G Payment Solutions plc. At this time, all participants are in listen only mode. Later, we will conduct a question-and-answer session through the phone lines, and the instructions will follow at that time. Participants can also submit questions through the webcast page using the Ask a Question button. I would like to remind all participants that this call is being recorded. I will now hand over to Martin Vohánka, founder and CEO at Eurowag, and Magdalena Bartoś, CFO, to present the results. Martin, please go ahead.
Good morning and welcome to our full year result presentation. I'm pleased to announce a strong and resilient set of results despite the challenges we saw during the year with regards to macro headwinds across Europe. We met our medium-term guidance set at our IPO in October 2021, which makes me very proud of the efforts and know-how of our colleagues when maneuvering through such a volatile environment. We grew net revenues by almost 25% and continued to grow our EBITDA at healthy levels of 17% with margins at 43%. We ended the financial year with strong balance sheet, allowing us to continue to invest into the business and sufficient funding ahead of the Inelo completion yesterday. Looking at our strategic achievements in the year, our growth levers continue to focus on growth from existing customers through cross-selling of our products and services.
Growth from new customers through geographic expansion and further market share gains and accretive M&As. The key highlights for me in this year was to start to move our local market sales teams to more of an agile sales model. Continue to broaden our footprint with investment in sales teams in new markets, Germany as an example. Continue to build on our indirect relationship with few OEMs, means truck manufacturers deals signed in the year. Building essential technology and data infrastructure to support our vision. Finally, we invested inorganically. We have realized of WebEye, and as you saw yesterday, we completed Inelo. Both allow us to expand our network of connected trucks, bring significant headroom for cross-selling opportunities, expand our product offerings, and further enhances our network effect, helping us reduce churn and increase lifetime value.
Our business is in very different place to where it was just a few years ago, and therefore, in the year we have built and strengthened our people capabilities at senior level to ensure we have the right people to take us into the next phase of this business, which will be about integration and more digital and tech-led organization. If we step back and try to understand what Eurowag ambition was when I started this business 27 years ago, it has always been about helping the industry and solving for the issues our customers have encountered. Our customers are trucking companies who have their drivers, dispatchers, and trucks to manage 24/7 in a world which is very much still analog.
Each person in the ecosystem has a different job and are given mission critical products and services to do their job, which are provided to them by multiple suppliers that do not sync with each other, making their jobs even more consuming and inefficient. On the other side, we have suppliers who only provide single products and therefore they don't truly understand their customers overall challenges, how to handle vast amount of data, and thus cannot by definition address the root cause of the industry key pain points. We saw an opportunity no one else did, that was to build something that can consolidate this fragmentation, that was to build the industry first, truly integrated end-to-end digital platform, which will solve for complexities, drive fair value distribution to carriers, and help our customers drive efficiencies within their own business.
The reason why digitization will help the industry is because of the following: complexity of the jobs and unattractive working environment. Drivers and dispatchers jobs are still very analog. Processes are still being done on Excel spreadsheets or paper, creating inefficiency in a business processes and data analytics. Over 90% of operators are small and medium enterprises and have limited access to technology and data insights, causing empty loads on the road and generally low utilization of their assets. Customers are constrained with little to no access to bank facilities for working capital. All these inefficiencies, from disorganized route planning to no access to load demand, is creating more pollution than is required. Digitization is a game changer and will allow the industry to prosper, to become clean, fair, and efficient. This is exactly Eurowag purpose.
I thought it would be helpful to remind you of our journey over the last three decades and how Eurowag got to where it is today. It started in 1995 when we started building a loyal customer base, helping them with their costs and working capital challenges. We class it as our expansion phase. We started in Czechia and expanded the business to pan-European over the course of two decades. As we grew, I realized that the international haulage business needed to solve for more cross-border payment complexities. We started to offer toll services, and thus soon offered a sticky suite of mission-critical services. In 2016 and 2017, it was clear the trucking industry was still lagging with its digitization transformation, while our customers' work was becoming even more complicated with the increase in regulatory requirements and further fragmentation of the industry.
Our strategy adjusted for this, and we started building and acquiring mobility and digital services with a focus on leading businesses in their domain or region. With the expansion of our mobility services capabilities, our access to data started growing. We started to invest in transformational technology to ensure we were building a platform fit for purpose. We now have a one-stop shop for mobility solutions, and following the acquisition of Inelo, contribution from mobility solution is expected to be just under 50%. Which leads me to today. We have acquired the product capabilities we need to connect the carriers and suppliers. We have been building technology platform that can start to accelerate digitization of the industry. We have been evolving the team around me to ensure we have the right skills to take us into the next phase, which is all about integration.
Integration of the businesses we acquired in 2022, and continued integration of our platform so we can deliver on end-to-end digital customer journey, simpler pricing and cross-sell model, and better utilization of our data. All of this will benefit our customers, helping them improve their back office and drive efficiencies, and ultimately help reduce the industry carbon emissions. Here I will hand over to Magda to talk about this year's performance, and then I will come back to talk more about this year's focus and our ambition for the next phase. Thank you.
Thank you, Martin. Good morning and thank you for joining us today. As Martin already mentioned, we are sharing with you today a strong set of results, which once again demonstrate the inherent resilience of our business model and resourcefulness of our people. Before I talk you through the full year numbers, I wanted to first remind you of Eurowag's strong financial profile. Eurowag is now a truly pan-European business with significant scale. In 2022, our payments network attracted almost 17,000 active customers who operated over 88,000 of trucks. We have a proven track record of delivering strong double-digit growth. On average, every year since 2020, our number of active payment customers grew by over 13%, while group net revenues grew by over 20%.
On the back of our diversified model across payments and mobility solutions, our net revenue retention continues to be high, in excess of 110%. This reflects the mission-critical nature of many of our services and the crucial part the business plays in our customers' day-to-day operations. As we further integrate additional services, particularly following the Inelo acquisition, which adds Working Time Management, we will have even more products to cross-sell and more opportunities to drive customers' loyalty. Last but not least, we are a highly profitable and cash generative business. Scale and financial discipline continues to drive profitability. We delivered adjusted EBITDA margin of almost 43%, we ended the year with enough leverage headroom ahead of completing Inelo acquisition. I will now take you through the details, starting with the financial highlights from last year. We had a strong year.
Our net energy and services sales increased by 24.6% year-on-year, while organic growth came in at over 19%. Both of our divisions delivered strong double-digit growth. The 19.2% sales increase in payments was driven by strong new customer and trucks acquisitions and underpinned by strong average net revenue retention. The 39.8% year-on-year sales increase in mobility solutions reflects our effective cross-selling as well as sales to automotive partners and WebEye consolidation. Adjusted EBITDA was up 17%, in line with our expectations, and I will talk you through that in more detail shortly. We continued to invest in our business last year, prioritizing digital transformation and inorganic growth.
Our transformational CapEx totaled to EUR 25.5 million, while our investment in M&A reached EUR 60.1 million. These were the acquisitions of WebEye, JITpay, and Last Mile Solutions. I will now talk you through our operational expenses. As Martin mentioned at the start, in the year, we were investing in building and strengthening our people capabilities, which added to adjusted employee expenses growth of 27%. The group made a number of key senior hires in the product and technology area, as well as corporate functions. This also meant that we incurred some costs relating to exits. In order to attract and retain the right talent, we continued to roll out our remuneration schemes, particularly the performance share plans. As you know, technology is central to our business while we are building a modern technology platform.
This drives higher expenses related to cloud transition and modern software maintenance. Adjusted technology expenses were up 53%. Adjusted depreciation and amortization charges grew by 48% year-on-year, as more of our transformational technology was put into production and as a result of consolidation of acquired WebEye assets. Let's now take a closer look at the EBITA movements. We saw double-digit growth in our adjusted EBITA, which came at EUR 81.6 million, and an adjusted EBITA margin of 42.8%. Let's take a look at the EBITA evolution through the year, as this highlights the underlying strength of our business.
If you look at the left-hand side, you can see that on a standalone basis, organic growth would have delivered EBITA of EUR 83.5 million, with an EBITA margin of 45.6%, reflecting strong performance from both segments. Within that, it is worth noting that despite an increased credit losses risk through the year, our full year credit losses ratio remained at the level of 2021. As a result, we added only EUR 0.8 million to our cost base, which represents a real achievement. I have talked about employee and technology expenses already. Moving towards the right, other operating costs relate to various items such as return of travel post-COVID, inflation, marketing, and various other central costs. You can see that we benefited from inorganic growth, specifically from WebEye consolidation last year. Finally, incremental PLC costs.
These relate to being a listed entity for the full year versus three months in 2021, and they are associated to broadly governance and communication capabilities. Moving to CapEx. Last year, our group capital expenditure was EUR 43.2 million as we invested in technology transformation and reinvested in our asset base. Our combined software and infrastructure related ordinary CapEx amounted to EUR 17.7 million, which represents 9% of net revenues. In terms of our transformational CapEx program, we spent EUR 25.5 million last year, and we are on track to finalize our program at the end of 2023 and within the EUR 50 million budget set at IPO. Our transformational program has been about investing in our platform.
If we take each layer in turn, it's been about enhancing our sales channels and customer touch points, expanding our product and service capabilities, and building a cloud-based data system. Last year, we invested in our navigation software, and as Martin mentioned earlier, we have won some OEM accounts during the year and are starting to develop the software with them. Having been awarded our EETS certification in Germany and Czechia, we continue to improve our toll EETS product offering. At the same time, we are enhancing our customer financing capabilities to enable further automation and real-time finance management. In the year, we also launched the first phase of ERP software implementation, which focused on energy billing, pricing, and sales, and have started developing the architecture for the second stage, which will focus on general ledger and group reporting.
Finally, we have started to consolidate all the data we receive from our products into a data lake. This has allowed us to develop a customer data insights tool for our sales channels, and in time, this will fuel product development and drive growth. Moving now to cash flow. Eurowag continues to deliver strong underlying cash generation, driven by positive trading performance and supported by stable working capital movements. At the end of the year, our cash stood at EUR 146 million versus EUR 224 million gross cash at the beginning of the year. This decrease was primarily due to investment in growth, both organic and inorganic. You can see this investment on the right-hand side of the chart.
This included investment in technology transformation and M&A activities, including WebEye, that enabled us to expand our customer base and strengthen our position in Hungary and Romania, and JITpay, that will allow us to enhance the financing optionality to our customers. The increase in working capital mainly resulted from an increase in inventories due to a higher stock of onboard units and materials resulting from our decision to secure stock levels of electronic chips responding to market shortages and shifting production to an alternative partner as we ceased cooperation with a supplier owned by Russian individuals. Finally, the net financing activities, these represent outflows related to repayments of borrowings due to amortization of our loans and lease repayments. Now, let's have a look at our debt profile.
Maintaining strong capital discipline while pursuing strategic growth opportunities, that has been a theme and is a key priority for Eurowag, and we have a strong track record in this area. At the end of 2019, we were at almost 3x levered following some key acquisitions, and through strong capital discipline, we were able to reduce our leverage to 1.8x ahead of the IPO in 2021. We will approach our debt profile in the same way following in our acquisition. In September last year, we signed a new club financing agreement to refinance and expand our credit facilities. This transaction helped us to secure favorable terms, extend maturities, but also expanded on banking relationships.
As you can see from the chart, our committed debt amortization profile, Facility A of EUR 150 million will amortize in quarterly repayments starting on the 31st of March 2023, while Facility B of EUR 180 million, which we only drew down last week to complete in our acquisition, starts to amortize in June 2023. With respect to Facility A, we have secured interest rate swaps to hedge 100% of the reference rate exposure in 2023 and 2024, and the terms can be seen on the right side of the page. Same hedging profile has been secured for Facility B. With regards to our borrowing, both Facility A and Facility B have a margin ratchet depending on leverage, and it's 1%, sorry, for the mid-range.
Today, we have reiterated that we are committed to maintaining our net debt to adjusted EBITA leverage ratio at 1.5x-2.5x over the medium term. Following the Inelo acquisition, this leverage ratio will come in at above of the 2.5x. In line with our past track record, we are committed to deleveraging back within the target in the near term. Now, capital allocation principles, I won't go through that in detail. Just to reiterate, our objective is to deliver a truly integrated digital platform while maintaining financial discipline. We're well investing the business to drive organic growth with a clear focus on technology and expanding our capabilities.
Whilst accretive M&A is still important to us as it enhances our capabilities and expands our footprint, our priority in the near term is to return to within the net debt to adjusted EBITA leverage target range, as we want to maintain our robust balance sheet. Finally, we will prioritize the growth opportunities and therefore there is no intention of paying a dividend in the near term. To conclude, our medium-term financial guidance remains unchanged, I will just highlight a few points here. We expect organic net revenues of high teens to low 20s. Our medium-term guidance for EBITA margin is that we expect to grow from mid-40s to high 40s.
As we communicated when we announced our intention to acquire Inelo, there will be a change in the group's net revenue mix with Inelo consolidation, with around 45% of net revenues coming from mobility solutions, which may impact margin expansion. Inelo's revenues are majority subscription-based and naturally more recurring. However, it generates lower operational gearing. We are set to finalize our technology transformational program this year, and ordinary CapEx guidance remains at high single digit of net revenues. Finally, as most of you know, this is my last results announcement with Eurowag. It has been an amazing privilege to help lead this group and see the business grow. I would like to thank all of you, but especially my talented and committed team for their support in developing Eurowag into what it is today. I want to reiterate that we enter 2023 with strong momentum.
Eurowag is well-placed to both deliver further sustained growth and make significant steps towards achieving our long-term objectives. Thank you. With that, let me hand it back to Martin.
Thank you, Magda, and mainly for your brilliant service over the last three years. Having spoken about the expansion and accumulation phase, I wanted to tell you more about our next phase. In order to focus the business on the right priorities when stepping into the next integration phase, we have changed our growth pillars slightly into attract, engage, monetize, and retain. Attract means to continue to focus on expanding our presence and increase market share through direct, indirect, and digital channels. What will change here is our sales teams will come together into multi-competence agile teams advising larger customers, whilst digital channel will serve smaller clients. This contrasts to general practice of the industry so far, selling through direct sales, single products and features in silos. We are now focusing on building our indirect partnership with OEMs, means truck manufacturers, getting our products built-in into every new truck.
Digital is very important part of the mix, as it will allow us to accelerate sales and scale up whilst reducing our cost to acquire. Engage. This is about our focus on digitizing and integrating our product portfolio and customer user experience. Our customers will have unified experience with a seamless digital customer journey. This will help us to integrate our sales efforts, pricing, and we can improve how we bundle products. The benefit to our customers will be about streamlining the process and workflow efficiencies. Monetize. Here we continue to focus on cross-selling our products and services. With our new acquisitions, we have further opportunity to cross-sell to unlock both revenues and cost synergies. Finally, retain.
Our digital platform will expand our suite of mission-critical products such as financing and load matching, addressing truck utilization, all through real-time access with unique tailor-made propositions using our data and AI. Our scale-up portfolio of trucks will attract new partners which can offer their services through our digital platform, allowing us to serve all the needs of the truckers. Magda spoke earlier about our CapEx investment in 2022, and I will talk about the final year of our transformation CapEx and what our priorities are. As you saw earlier, we have spent many years investing in our platform, building the blocks you see on the left sides on the slide to create our digital end-to-end platform. Taking our strategic pillars into account in order to deliver on our attract and retain priorities, we needed to invest in the sales channels.
Our focus this year is about integrating all the front ends and continue to enhance our the customer journeys. We have developed a load prototype, which we have been testing with customers and have updated the blueprint. We have started to build out the product, we will be able to soft launch it later in the year once we have had time to test and develop it further. Adding demand to our platform will further support our customers, our ambition is to reduce empty loads and increase mileage. As I have mentioned before, we need to integrate our capabilities acquired in 2022 into the platform, including streamlining some of our products where we have duplications. Finally, we need to consolidate all the data we received from our products and services into one place.
As Magda mentioned, we started to build a data lake last year. Consolidation has started. We have some way to go. The team has already started to build a customer insights tool to support our sales team with cross-selling opportunities. We have started our journey to become a data-led business. As I have mentioned earlier, our ambition is to address trucking industry inefficiencies and to help our customers with their key pain points. Today, through our payment solutions, we are helping customers to simplify their payments, reduce costs, and improve working capital. Our expanded mobility solution suite helps customers to improve efficiency, not only in their back office, but also their driving performance. Integration of all that into one platform will only accelerate value extraction. There are further large-scale opportunities to unlock through new capabilities, such as better financing solutions.
We can advance our financing solutions through our strategic partnership with JITpay, and this will further improve customers' workflow, cash flow. Further to that, building our load capability will address the unnecessary empty loads we see on the roads today and increase mileage. Our data-centric platform make us perfect partner to help bridge the divide between the carriers and the suppliers, driven by lack of transparency and visibility, which will enable to distribute value fairly throughout the ecosystem, driving higher revenues for our customers. Truck utilization, better routing, or improved driving style will drive carbon intensity down, whilst our expanding network of alternative fuels is enabling the carbonization of the trucking company's operations. All of these new capabilities are supporting Eurowag purpose to make commercial road transport industry clean, fair, and efficient. This takes me nicely to my next slide.
Our sustainability strategy focuses on four areas: climate action, customer success and wellbeing, company governance, and culture and community impact. Climate action being a key priority, and our board is very focused on that. We have set ourselves medium-term targets as well as long-term targets and have established a decarbonization roadmap to help us achieve our objective. Long-term, we are committed to being a net zero company by 2050, and we have accelerated our ambition to reduce greenhouse gas emission from our own operations and become a zero emission operations by 2040. We have also set targets with the biggest overall impact, helping our customers to reduce greenhouse gas emissions and accelerate the energy transition to low carbon commercial transport.
Our target is to reach 80,000 active alternative fuel trucks using our products by 2030 and achieve 20% carbon intensity reduction per ton kilometer by 2030. In summary, we've achieved very strong set of results despite general economic challenges. We have delivered attractive growth through growing our customer base, further geographic expansion, and cross-selling into our customer base. Finally, we are delivering on our technological investments. However, we still have a lot of to do. My priorities therefore are for 2023. We need to integrate in Inelo and WebEye both products and people. We expect to complete our transformation program at the end of this year. This will further improve our cross-sell capability. We will continue to build our customer insights and better utilization of data.
As Magda has already mentioned, we will focus on deleveraging following the completion of Inelo. Finally, we are doing more this year on educating the market about the equity story, about our equity story, including hosting a Capital Markets Day later in the year. This everything we have just discussed and the momentum we have entered into 2023 gives me confidence that we will continue to deliver strong growth in line with medium-term guidance, which is unchanged. With that, I will open to Q&A.
Thank you. Participants can submit questions in written format via the webcast page by clicking the Ask a Question button. If you are dialed into the call and would like to ask a question, please signal by pressing star one on your telephone keypad. We will pause for a moment to assemble the queue. We will take our first question from Hannes Leitner from Jefferies. Hannes, please go ahead.
Yes, good morning. Thank you for letting me on. First of all, congrats to the result. Maybe you can drill down a little bit around the margin expansion and what held it back, and what would be the underlying margins for the FY 2022 year if you exclude the one-offs or the things held back. The second question is maybe, you know, like, after an M&A deal, there is definitely the next one, if you want to consolidate the market. Maybe you can talk about M&A pipeline and how the environment has changed.
Given the last question is the mobility solutions, given it has now increased or it will increase substantially in the revenue mix, do you plan to provide there some KPIs so we can look better into the moving parts of the business? Thank you.
I will ask Magda for the first part of the question regarding profitability, and I will take the other two.
Sure. Hello, Hannes. Good to have you with us today. On the margin expansion bit, while we don't guide specifically to a single year margins, we've got some good understanding, and we presented also today what drives our margins and how EBITA has evolved during the year. As you can recall that page in the presentation, for the organic part of the business, we, on a comparable basis, we achieved 45.6% of EBITA margin still impacted by a few headwinds or changes within the business that we managed. There are three, namely. One is the macroeconomic headwinds with inflation, pretty much what all of us experience now, and how that impacted specifically cost and utilities, how they will impact the salaries cost.
We decided to increase the salaries cost of 8%, in 2023, from the beginning of 2023. We also had several costs related to changes in the structure and changes in the remuneration schemes. Additional PSP costs, these will continue but are of non-cash nature, and costs related to exits and changes in the senior leadership team. With all of that, what drives our margins is the scale of the business. The fundamental operational gearing of the payments business is still there and supports our margin expansion. With the growth being delivered in 2023 and beyond, we reiterated our margin expansion objective and guidance today.
Thank you. Thank you, Hannes, once more for the questions. Regarding the M&A, before I will outline what we do expect in following year and beyond, I would like to stress that we have two key objectives. At first, to integrate what we acquired. They are big things whereby in a lot these are large organization and large opportunities. We'll be very busy now to extract the value which we've planned. Secondly, as was stressed several times during the presentation, we need to make sure that we deliver each and that we, like, deliver on our financial profile as we are guiding the markets. Having said that, we still do continue on the market and scan for relevant value accretive opportunities.
Again, this might be from both angles, either providing further scale to the business or bringing additional capabilities. If you link it with what we were saying since IPO, we said that we will be digitizing the trucking companies in order to make them efficient, in order to better connect them to outside world, to provide them access to working capital. As well, we were mentioning the issue of load or utilization of the trucks, because there are plenty of trucks on the roads which are empty. Especially smaller and medium-sized truckers has lower mileage than those than the champions in the industry. One of the areas where we are spending our money, as Magda said, is development of these functionalities, development of this product.
We are also looking on a space, whether there could be some companies or some targets which will further accelerate our efforts in this area. When it comes to KPIs, thank you for this question, and I can tell you that I am very much looking forward for the moment then later in this year, we will be articulating our adjusted set of KPIs. As the business is evolving and we are now stepping into, let's say, next integration phase, together with what you observe, you know, that mobility services are having a larger, much larger proportion, and really the business is dramatically changing. It's made perfect sense to adjust a set of our KPIs.
As said, this will be happening only later in the year, and I hope that this will provide you right, further visibility and again, better understanding consistent with our story, investment case and the vision.
Thank you so much.
Pleasure.
Thank you. The next question is coming from Rory McKenzie from UBS. Rory, please go ahead.
Good morning. Three from me, please. Firstly, within your strong growth and the current KPIs, actually, I noticed 8.4% growth in the number of transactions in the past year, which was slower, I think, than both 2021 and even 2020. Can you quantify any headwinds that affected that, such as, for example, the closure in Russia, or customers that maybe were suffering from driver shortages? Secondly, Magda, can you just talk about how we should expect Inelo to impact group margins in 2023, and whether we should expect any further increase in PLC costs or whether that's now at a full run rate? Finally, it was really interesting to read and hear about the two OEM contracts that you've signed. Appreciate they're not gonna really start until 2027.
Please explain more about how they're structured, you know, how many potential trucks that could add to your customer base, how you're aiming to, I guess, sell to those customers. Just sounds like a very interesting channel. Thank you.
Thank you, Rory, for questions. I believe that the best is to leave first three to Magda, and I will address the question of OEMs.
Understood. Rory, on the growth, we report and provide you three sets of the of KPIs. Growth in the number of customers, growth in the number of trucks, and growth in the number of transactions. Those did have different dynamics in 2022, mainly as a result of, A, macroeconomic headwinds. You rightly mentioned that Russian invasion in Ukraine resulting knock-on effects when it comes to operations of transport in Europe, but also availability of fuel and changing scene when it comes to fuel supplies had some effect on our customers trading. We navigated that with confidence.
We spoke about it earlier in the year, how we managed to supply our network and how we managed to secure the suppliers and the suppliers' network as well. With that, while we navigated the headwinds, we don't see fundamental changes that we would need to talk about today. There were also changes related to our customer portfolio and specifically ADS migration. ADS customers were migrated to Eurowag platform, and with that, we experienced churn that we also spoke about earlier in the year. That migration is largely completed.
The vast majority of the customers are already operating within Eurowag's payments network. With regards to Inelo's impact on group margins, we associate our comment of those of a greater share of mobility solutions revenues to impact the pace of margin in expansion, not really impact the margin expansion itself. The reason for that being lower operating gearing of mobility solution services. When you look at contribution margins of our two segments, both are absolutely strong. Payments contribution margin is higher. It's in excess of 80%, close to 90%, while the mobility solutions is around mid-70s or slightly lower. That drives the conclusion that with more of the mobility solutions revenues coming in, our margin expansion on the EBITA level will take a bit longer.
That's the key reason. With regards to PLC costs, as we mentioned, they are largely associated with governance and communications. These are salaries of the governance functions and the boards. These are the advisory services related to corporate secretarial, also increased audit fees or communication support and also D&O insurance. Largely fixed cost base or only fixed cost base. The only changes we might experience throughout the year is when we either extend the scope of that support or we experience some inflationary price increases. We don't expect any material change to those costs. Martin, OEMs, over to you.
Yeah. When it comes to OEMs, we definitely are excited about these deals. I have to also mention that this is new phenomenon in the industry. What you've seen, the payments and mobility solutions were always subject of the after-sales. From very good reasons. At first, the OEMs were not seeking to have such a broad reach out. Secondly, customers typically prefer to have solution which is agnostic to brand of OEM. However, the world is changing, so... OEMs are also seeking how to go beyond car production and to offer services to customers and to maintain longer term regulation and not just to stop on the steps of the dealer. This is new and we are learning.
Both parties are learning, I mean, Eurowag and OEMs, how to further explore. What I can say that how it will look that in every infotainment of these new trucks will be sitting our branded application. Not like a white label to OEMs, but it's our brand. We have definitely door open to offer anything, you know, within these applications. That's very much linked to our investments into digitization about unifying user experience. All these efforts which we are doing for the direct channel and for digital channel are very much compatible with indirect channel, which allows to expand then the applications and to offer more and more services. As said, we are on a path.
We are learning together with OEMs how to best address customers through this channel, how to share revenues, how to share the effects out of it. This is to come now. Nothing to be further commented, but definitely this is great opportunity ahead.
Thank you both. That's very interesting. Thank you for your time, Magda. Wish you all the best.
Thank you, Rory.
Thank you. The next question is coming from Pavel Ryska from J&T Banka. Pavel, please go ahead.
Thank you. Good morning, everyone. First of all, congratulations on the nice growth last year and on the good set of results. I have two questions. First one, in your fixed cost base, how powerful have been the inflationary pressures? Many firms here in the Czech Republic have complained about pressures from inflation, for which I mean mainly, in your case, IT and people. How strong is the growth in these costs? My second question touches the trading of your shares. The liquidity has been rather weak recently.
My question is whether you are considering some steps or whether there are some steps that you could take to increase liquidity, either increasing free float or maybe accepting new marketplaces where to trade your shares? These are the two questions. Thank you very much.
Magda, if I may ask for the first, and I may address the second. Thank you.
Yeah. With regards to fixed cost base and inflationary pressures, Pavel, we already commented a little bit when talking through the EBITA evolution. In 2022, the impact was limited. We had impact of costs returning post-COVID and inflation of around EUR 1.9 million. That inflationary impact was largely on utilities. We also adjusted salaries for the employees with lowest salary levels in the second half of last year. Again, with limited and well manageable impact on our payroll costs. In 2023, we reflected inflation in local markets in the salary increases decisions, and on average, our workforce received 8% of salaries increase.
We believe that is sufficient for the time being, as and remains our commitment to the employees. Indeed, when it comes to IT costs, we are carefully observing the man-day rates and offers from our external vendors. More and more, we reduce the reliance on external vendors and develop our technology internally. That helps us also to support, or helps us also to respond to inflationary expectations from the external vendors group.
When it comes to liquidity, thank you, Pavel, for the question. Indeed, this is one of the concerns that low liquidity, but very recently the liquidity was increasing in last few weeks. We believe that simply the work which we are now doing, the team around investment relations, the more intensified communication, more clarity, continued result, continued excellent results delivery, delivering on a technological roadmap, realizing such a fantastic acquisitions, you know, that all this is supporting overall interest in our story, understanding of our story. We believe that these things will be picking up. That's our plan.
Okay. Thank you.
The next question is coming from Gautam Pillai from Peel Hunt. Gautam, please go ahead.
Great. Good morning, Martin and Magda, and congratulations from my side also on a good set of results. I have two questions if that's okay. First, can you help us unpack the growth in 2022 a bit? How much of the growth is coming from new customer wins and market share gains? How much of it is from wallet share expansion from your current installed base? You do provide a very useful metric of net retention rate of 110%. As an average customer take-up of three products of your portfolio. Is there more room for that 110% net retention rate to expand?
Another question?
Can you hear me?
You're breaking up.
Yeah.
I suggest let's take this question.
Yes, I will follow up with my second question later on. Carry on.
Okay.
Yeah. Magda, probably on you now.
Let's try to unpack that growth first, as you called it, Gautam. Thanks for joining us today. Good morning. Let's first unpack the growth, organic versus reported. What we communicated in our results is a strong, almost 25% growth on of our top line. That's delivered through both of the of our revenue lines, so payment solutions and mobility solutions. Payment solutions on reported basis, 19% of growth. On organic basis, 18% of growth. There is a WebEye revenue that adds to our payment solutions growth. That 18% of organic growth delivered largely through two powerful features of our business model.
A, new customer acquisitions, customers, average customers number during the year grew by 13% compared to last year. B, the average net revenue retention, which we smoothen and report for the last five years period to avoid any spikes when you think about future performance. It has been stable and in excess of 110% ever since we started reporting that KPI. I think good visibility of the net revenue retention coming from the past years' cohorts of customers and strong double-digit addition to our customer base from new wins, new customer wins. For the mobility solutions, we've got almost 40% of growth on a reported basis and 22%, if I'm not mistaken, on organic basis.
Three elements to mention here. A. It's cross-sell of our solutions from the mobility solutions to payments, and this has been stable, slightly improving, as you said, 2.9 on average of services that our customers consume, while in the past, we had 2.82. We've got also our fleet management solutions and navigation solutions or smart routing solutions, natural expansion, but also the sales to automotive partners, what Martin elaborated on, are more and more supporting our growth in the mobility solutions segment. That's the way to think about decomposing our growth rates.
Great. That's very helpful. A follow-up question for me was on the macro environment, and perhaps one for Martin. Can you comment on what you're hearing from your customers, and specifically about their spending plans in a tough macro? When we think about 2023 growth, how should we look at the different moving parts in this environment? Thank you.
Thank you. Thank you, Gautam. What we hear from our customers, it's difficult to make conclusions in this respect because since COVID, the typical seasonality was destroyed. Really to appreciate, you know, how it's behaving January, sometimes they will tell you January is better than usually if February was weak, et cetera. Really to conclude something. What would be conclusive for the year, it's, I would not dare to build it on that, because I said the seasonality is not anymore as we were used to for decades before, let's say, or in the periods out of the crisis, let's say. I exclude 2008 and let's say COVID.
When it comes to outlook, we as you know, we confirm our medium-term guidance. When it comes to growth from mobility and payment solutions, we do expect a similar evolution as we witnessed in 2022. No change, no change in the course. Of course, we do expect further positive perception of our customers on the product development, on the technology advancements, as we are investing into that. In terms of structure of revenue generation, we do not expect any changes.
That's very clear. If I may squeeze one in, one more question on Inelo, please. Obviously, you've closed the acquisition yesterday. I assume you might have already done some pre-closing work on the portfolio and the customer base of Inelo. When do you envisage the cross-sell, upsell synergies to kick in? Do you see on the top line specifically, do you see something happening in 2023, or is that something which we should expect in 2024 and beyond? Thank you.
Thank you. Indeed, we try to utilize max to maximum extent this period in between signing and closing. We installed so-called clean team. We hired the advisors which were helping us to facilitate and to make sure that our teams are strong enough and that we overlook anything. This makes us really having great position today when closing the deal or from yesterday when closing the deal and immediately to the jump on realization of both revenue synergies, cost synergies, integration, detailing integration plan, et cetera. Inelo is a great example that I would like to illustrate, which is, however, applicable not only for Inelo but also for WebEye and other acquisitions. In fact, this cross-selling effect is coming from multiple layers.
In the first instance, it's a sales organization, and that's what we do not have any limit, and we can realize it almost immediate, and we will be realizing almost immediately. Means teams coming together, taking their portfolios and cross-selling Inelo products to Eurowag and vice versa, Eurowag products to Inelo. This is the so-called low-lying fruit. As we commented earlier, we were already working intensively last year on so-called agiles. Agile so means multi-competency teams. In this practice now, where there is a team, let's say in Poland, taking care about certain region and having fuel expert, toll expert, customer care, et cetera, now there will be one more expert selling Working Time Management solutions or other solutions which Inelo have. This is the first layer.
The next layers of leverage, in terms of, we call it internally cross-sell centric design, is indeed user experience. Again, as it was said, you know, this is our focus to bring the user experience, have one passport, one environment, the functionalities to bring together in order to provide seamless experience. The next layer is a pricing. Again, already commenting. You know, we have now more tool sets, in order to bring pricing and bundles together. What has paramount importance, and again, this would take time to bring the data into one platform and to start to extract and streamline customer journeys and therefore to make their workflows and more streamlined and more efficient. As you see, we have multiple layer levers.
We'll be activating them over the time step by step as those new functionalities will come into fruition. Already, in 2020, we will see revenue synergies coming mainly from sales coming together. Of course, we need to be modest because we just signed the deal. We have not full the 12 months, but still nine months provides quite a lot of room for sales teams to deliver on the results which we set already before closing.
That's very helpful. Thank you so much and good luck to you Magda. Thank you.
Thank you, Gautam.
Thank you. There are no further questions on the conference line. We will now address the written questions submitted via the webcast page.
Thank you, operator. There is one question from [Tintin, Stormont,] or sorry, several online. The first is: When you talk about strong net revenue retention during the year, were there particular products or geographies that outperformed? The second question is: Please can you remind us how sales are organized and incentivized to cross-sell? The final one is on Inelo. In the Netherlands business, I believe revenues from Working Time Management outsourcing is bigger than sales. Do you expect the opportunity in the wider group to be as greater in outsourcing versus software? How should we think of the opportunity in this space? What is the most current customer base using, if any? What do you think the success looks like in terms of cross-selling Working Time Management in, say, a year's time?
Magda, if you can take please the first question, and I will address sales and Working Time Management solution.
On net, average net revenue retention, Tintin, we talk about a longer, kind of set of.
That, now and always saying that over the past years, the net revenue retention was in excess of 110%. That certain, the performance of different lines, that within a given year with different lines or different products, tends to differ, with. Especially tends to differ in different regions. We don't believe that the disclosure would actually add value because what we manage is not sum of particular individual products, but more an offering for the customer within the payments and mobility solutions, integrating that even more and more. I would rather avoid into going in particularities of a single product line. Focusing, is the company able to maintain high visibility of revenues from the customers acquired in the previous years?
When it comes to sales and how they are motivated. Again, coming back to the agile teams, as we call it, while being inspired from technology world. You can think about these agile teams as in similar terms. In the middle is not functionality or some kind of feature which tech team or team of developers is developing. In the middle is the region from which in which our customers, regardless what is the channel. The team is taking care about this region, about these customers together. They have common targets, common goals. It's not silos, but they are brought together. Multidisciplinary expert on VTM, expert on fleet management solutions, expert on tolls, early collection expert, customer care.
They are working together seamlessly in these small teams in order to achieve the maximum possible outcome, share the relations, share the knowledge about customer development. We believe that this is simply the best way forward for, let's say, multiproduct offerings. When it comes to Working Time Management and opportunities in abroad, absolutely. We are very much convinced about the solution and the relevance across Europe. However, what will be the specific relation between software and this outsourcing? We need to see, because every market is different in terms of digital adoption and perception of these technologies, so we'll be learning on the way.
What is, however, the most important, this is the product which every transporter need across Europe because this speak, this is reflection of so-called Mobility Package, which is addressing level playing field, and wellbeing of the drivers. Every country, every transporter has to comply with that. That is a need, and we will see as we will be deploying country by country what will be the final mix.
Okay, thank you. There are no further written questions. I will now hand back to Martin Vohánka for closing remarks.
Thank you very much for your great questions. I hope that you were as pleased as we were while achieving these results. I'm very much looking forward to next interactions, as said, because we are well set for the year 2023 in terms of strong growth, accumulated capabilities and great team around. Thank you very much.