Slide 1: Third Quarter Results 2024
Third Quarter Results 2024 November 6 2024 1
Slide 2: Agenda
Agenda Q3 2024 highlights incl. regional performance Q3 2024 group financial performance & outlook Closing remarks and Q&A FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements, which include estimates of financial performance and targets. These statements are not guarante
Slide 3: Actions taken to improve on the back of Q3 performance
Actions taken to improve on the back of Q3 performance Slow-to-materialize Moderate slowdown in Capacity adjusted to fit Profitable growth to recovery in the data the Life Science market current market demand return in Q4 2024 migration business NOV 2024 | NNIT | Q3 2024 RESULTS | INVESTOR PRESENTAT
Slide 4: A challenging quarter resulting in FY outlook adjustment
A challenging quarter resulting in FY outlook adjustment Revenue Organic growth Operating profit Operating profit margin DKKm % excl. special items, DKKm excl. special items, % 444.7 -1.6% 17.5 3.9% (-1.7% growth vs LY) (11.1% Q3 23) (DKK 26.5m Q3 23) (5.8% Q3 23) NOV 2024 | NNIT | Q3 2024 RESULTS |
Slide 5: Region Europe: Moderate market slowdown led to a challenging quarter
Region Europe Moderate market slowdown led to a challenging quarter Q3 2024 Financial highlights Overall highlights REVENUE DKKm 126.7 REVENUE & COMMERCIAL HIGHLIGHTS (1.1% vs Q3 23) • Moderate Life Science market slowdown caused projects to be postponed or put on hold ORGANIC GROWTH • Data migratio
Slide 6: Region US: Slow recovery in data migration impacted growth
Region US Slow recovery in data migration impacted growth Q3 2024 Financial highlights Key highlights REVENUE DKKm 85.4 REVENUE & COMMERCIAL HIGHLIGHTS (-8.9% vs Q3 23) • Revenue growth decline was mainly due to the data migration business ORGANIC GROWTH • Similar challenges faced as in Europe with
Slide 7: Region Asia: Turnaround plan improves regional profitability
Region Asia Turnaround plan improves regional profitability Q3 2024 Financial highlights Key highlights REVENUE DKKm 35.9 REVENUE & COMMERCIAL HIGHLIGHTS (-4.1% vs Q3 23) • The macroeconomic environment continued to be challenging especially in China with an ORGANIC GROWTH increasing price pressure
Slide 8: Region Denmark: Improving profitability and solid underlying growth
Region Denmark Improving profitability and solid underlying growth Q3 2024 Financial highlights Key highlights REVENUE DKKm 196.7 REVENUE & COMMERCIAL HIGHLIGHTS (47.5% vs Q3 23) • Q3 2023 was impacted by a technical one-off of DKK 15m. Underlying organic growth is 8.5% ORGANIC GROWTH for Q3 2024 0.
Slide 9: Agenda
Agenda Q3 2024 highlights incl. regional performance Q3 2024 group financial performance & outlook Closing remarks and Q&A NOV 2024 | NNIT | Q3 2024 RESULTS | INVESTOR PRESENTATION 9
Slide 10: Tough quarter resulted in unsatisfactory performance
Tough quarter resulted in unsatisfactory performance Q3 2024 Financial highlights Key highlights REVENUE DKKm 444.7 REVENUE & COMMERCIAL HIGHLIGHTS (-1.7% vs Q3 23) • Underwhelming performance due to slow-to-materialize recovery in the data migration and ORGANIC GROWTH moderate market slowdown in Li
Slide 11: Full-year outlook adjusted on October 22
Full-year outlook adjusted on October 22 ADJUSTED IMPLIED Q4 2024 GUIDANCE FY 24 OUTLOOK ORGANIC GROWTH GROUP OPERATING PROFIT EXCL. SPECIAL ITEMS ~7-11% 8-12% ~6-7% 5.6% ~6-7% 6-7% 5.3% (previously around 10%) ORGANIC GROWTH 9M 2024, act Implied FY 2024 outlook 9M 2024, act Implied FY 2024 outlook
Slide 12: Agenda
Agenda Q3 2024 highlights incl. regional performance Q3 2024 group financial performance & outlook Closing remarks and Q&A NOV 2024 | NNIT | Q3 2024 RESULTS | INVESTOR PRESENTATION 12
Slide 13: Closing remarks
Closing remarks The third quarter was FY outlook adjusted as back of the Profitable growth to return in the challenging Q3 2024 performance fourth quarter NOV 2024 | NNIT | Q3 2024 RESULTS | INVESTOR PRESENTATION 13
Slide 14: Q&A
Q&A NOV 2024 | NNIT | Q3 2024 RESULTS | INVESTOR PRESENTATION 14
Slide 15: Contact information
Contact information Carsten Ringius CFO carr@nnit.com NOV 2024 | NNIT | Q3 2024 RESULTS | INVESTOR PRESENTATION 15
Slide 16: Appendix
Marker with solid fill APPENDIX NOV 2024 | NNIT | Q3 2024 RESULTS | INVESTOR PRESENTATION 16
Slide 17: The NNIT investment case
The NNIT investment case NNIT will grow its existing business utilizing its core assets alongside increasing profitability. Further opportunities to grow through M&A supported by robust balance sheet 01 | GROWTH 02 | PROFITABILITY 03 | BALANCE SHEET 04 | M&A Well-positioned in Leveraging existing Po
Slide 18: Key assumptions
Key assumptions The financial aspirations for 2026 are based on assumptions of relatively stable market conditions and supplemented by annual guidance TIME HORIZON BASELINE COST INFLATION INDUSTRY DEVELOPMENT MACROECONOMY The aspirations cover The baseline for the Able to alleviate impact Our market
Slide 19: Financial aspirations towards 2026
Financial aspirations towards 2026 ~10% ~10-13% CAGR YEARLY AVERAGE GROUP OPERATING ORGANIC REVENUE GROWTH PROFIT MARGIN BEFORE SPECIAL ITEMS NOV 2024 NNIT | Q3 2024 RESULTS | INVESTOR PRESENTATION 19
Slide 20: Opportunities for profitable growth
Opportunities for profitable growth NNIT operates in globally attractive markets with opportunities to grow within existing playing field Mid-term revenue aspiration, % >10% CAGR ASPIRATION Mid ~10% CAGR single to low double-digit Mid single-digit Mid to high single- digit 1,725 FY 23 outlook @ 15%
Slide 21: Margin expansion driven by leverage on cost base
Margin expansion driven by leverage on cost base Leveraging existing assets and reducing cost base will lead to margin expansion Mid-term Group operating profit margin excl. special items aspiration, % ASPIRATION Low single-digit Yearly average ~10-13% Low to mid Single-digit Low single-digit ~ 6% F
Slide 22: Our future state
Our future state In 2026, we are an industry leading employer and solution provider specialized in international life science and the Danish Public market Industry-leading employer A truly international A commercially savvy with strong attraction, retention company driven by strong company where eve
Slide 23: Business approach
Business approach Together with our customers and partners, we bring digital transformation to life and make a mark. We target industries where regulatory demands, high complexity and quality of life is at play Our solutions portfolio delivers a strong value proposition to specific customer needs wi
Slide 24: Focus towards 2026
Focus towards 2026 OUTGROWING THE MARKET DOMAIN FOCUS REPEATABILITY INTERNATIONAL MINDSET ACQUISITIONS We aspire to grow Building domain Continued New organization Focused M&A faster than the and tech investments in catering to approach to market i.e. take competencies in bringing new regional suppo
Slide 25: Group P&L
Group P&L NNIT A/S Quarterly performance FY performance DKKm Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 FY23 FY22 Revenue 445 474 463 438 453 1,728 1,500 Production cost 330 353 338 331 329 1,283 1,092 Gross profit 115 121 126 108 124 445 408 Gross margin 25.8% 25.5% 27.1% 24.6% 27.3% 25.7% 27.2% Regio
Slide 26: Region Europe P&L
Region Europe P&L Region Europe Quarterly performance FY performance DKKm Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 FY23 FY22 Revenue 127 135 126 109 125 465 468 Production cost 101 101 97 65 88 330 365 Gross profit 25 34 29 43 38 135 103 Gross margin 19.9% 25.1% 23.1% 39.9% 30.1% 29.0% 22.1% Regional
Slide 27: Region US P&L
Region US P&L Region US Quarterly performance FY performance DKKm Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 FY23 FY22 Revenue 85 88 93 91 94 387 312 Production cost 52 61 57 61 58 252 213 Gross profit 33 27 35 30 36 135 98 Gross margin 39.0% 30.8% 38.2% 33.4% 38.5% 34.9% 31.5% Regional overhead cost 1
Slide 28: Region Asia P&L
Region Asia P&L Region Asia Quarterly performance FY performance DKKm Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 FY23 FY22 Revenue 36 37 32 32 37 144 157 Production cost 28 27 28 31 33 135 134 Gross profit 7 11 3 2 4 9 23 Gross margin 20.9% 28.4% 11.0% 6.0% 11.2% 6.3% 14.7% Regional overhead cost 5 6 5
Slide 29: Region Denmark P&L
Region Denmark P&L Region DK Quarterly performance FY performance DKKm Q3 2024 Q2 2024 Q1 2024 Q4 2023 Q3 2023 FY23 FY22 Revenue 197 214 212 206 196 732 564 Production cost 148 164 155 174 150 566 369 Gross profit 49 49 58 32 46 166 195 Gross margin 24.8% 23.0% 27.1% 15.6% 23.3% 22.7% 34.6% Regional
Slide 30: | NNIT | Q3 2024 RESULTS | INVESTOR PRESENTATION
NOV 2024 | NNIT | Q3 2024 RESULTS | INVESTOR PRESENTATION 30