Slide 1: NNIT first nine months 2016
NNIT first nine months 2016 October 26, 2016
Slide 2: The NNIT Presenting Team
The NNIT Presenting Team Per Ove Kogut Chief Executive Officer Carsten Krogsgaard Thomsen Chief Financial Officer Jesper Wagener Head of Investor Relations 2
Slide 3: Agenda
Agenda Highlights for first nine months of 2016 Sales and backlog Financial performance Outlook for 2016 3
Slide 4: Forward looking statements
Forward looking statements This presentation contains forward-looking statements. Words such as ‘believe’, ‘expect’, ‘may’, ‘will’, ‘plan’, ‘strategy’, ‘prospect’, ‘foresee’, ‘estimate’, ‘project’, ‘anticipate’, ‘can’, ‘intend’, ‘outlook’, ‘guidance’, ‘target’ and other words and terms of similar me
Slide 5: First nine months of 2016 at a glance
First nine months of 2016 at a glance Revenue Operating profit Operating profit margin DKK 1,996m DKK 196m 9.8% +6.3% +11.0% +0.4pp +6.4% organic* +5.7% organic* -0.1pp organic* Net profits Order backlog Free cash flow DKK 143m DKK 2,662m DKK 118m -0.6% +7.2% -DKK 4m *Organic is growth in constant c
Slide 6: Q3 2016 at a glance
Q3 2016 at a glance Revenue Operating profit Operating profit margin DKK 674m DKK 70m 10.3% +6.6% +11.9% +0.5pp +6.7% organic* +5.4% organic* -0.1pp organic* Net profits Order backlog addition Free cash flow DKK 51m DKK 140m DKK 20m +0.9% -2.0% DKK -61m *Organic is growth in constant currencies usin
Slide 7: Major wins
Major wins Contract Segment Client Amount Length (DKK million) (years) Application outsourcing Public Danish Prison Medium-double-digit 2+2 (Announced in press release 30 August) and Probation (if option is exercised) Service Prolongation of Datacenter agreement Finance Financial client Medium-doubl
Slide 8: Backlog development
Backlog development Backlog for 2016 is DKK 2,662m, which is an increase of 7.2% compared to beginning of Q4 2015: • Expansion of contracts with existing customers in the enterprise and finance customer groups • New customers in the enterprise and finance customer groups • Partly countered by a lowe
Slide 9: IDMP Partner Ecosystem
IDMP Partner Ecosystem The ISO IDMP “Sweet Spot” NNIT will invest in the development of accelerators and standardized implementation models as well as contribute with our IDMP expertise and IT knowledge to transfer regulatory compliance into business capabilities. NNIT will become a one-stop shop fo
Slide 10: Financial statement
Financial statement Organic revenue growth of 6.3% (Q3: 6.6%) DKK million Q3 2016 Q3 2015 Change 9M 2016 9M 2015 Change Revenue 674.5 633.0 6.6% 1,995.7 1,877.4 6.3% Cost of goods sold increased by 6.5% Cost of goods sold 543.8 505.8 7.5% 1,616.6 1,518.4 6.5% (Q3: 7.5%) mainly due to: Gross profit 1
Slide 11: Segment development
Segment development DKKm Q3 2016 Q3 2015 Change 9M 2016 9M 2015 Change Life Sciences 386.8 400.1 -3.3% 1,165.9 1,170.3 -0.4% Hereof Novo Nordisk Group 298.3 319.8 -6.7% 909.7 923.9 -1.5% Hereof other Life Sciences 88.6 80.3 10.3% 256.1 246.5 3.9% Enterprise 144.7 97.1 49.0% 375.2 286.8 30.8% Public
Slide 12: Continued revenue diversification
Continued revenue diversification In the last 5 years the non-Novo Nordisk revenue CAGR is 13.1% • 9M 2016 the growth rate is 13.9% In the last 5 years the Novo Nordisk revenue CAGR is 3.6% • 9M 2016 the growth rate is -1.5% Operating profit margin has been stable the last 5 years * Current guidance
Slide 13: IT Operations
IT Operations DKKm Q3 2016 Q3 2015 Change 9M 2016 9M 2015 Change Revenue Novo Nordisk Group 203.0 216.0 -6.0% 615.5 619.0 -0.6% Non-Novo Nordisk Group 244.1 210.3 16.0% 692.6 630.7 9.8% Total 447.1 426.3 4.9% 1,308.0 1,249.7 4.7% Costs 393.9 381.7 3.2% 1,168.9 1,137.4 2.8% Operating profit 53.1 44.5
Slide 14: IT Solutions
IT Solutions DKKm Q3 2016 Q3 2015 Change 9M 2016 9M 2015 Change Revenue Novo Nordisk Group 95.3 103.8 -8.2% 294.3 304.9 -3.5% Non-Novo Nordisk Group 132.1 102.9 28.4% 393.4 322.8 21.9% Total 227.4 206.7 10.0% 687.7 627.7 9.6% Costs 210.8 188.9 11.6% 630.7 563.3 12.0% Operating profit 16.6 17.8 -6.8%
Slide 15: Currency development and hedging
Currency development and hedging After the depreciation of the CNY in Q1 vs. DKK, the CNY has been relative flat compared to DKK in Q3 USD has been appreciating vs. the DKK. PHP has been depreciating lately against the DKK, while EUR, CZK, CHF have all been relative flat vs. DKK We continue to have
Slide 16: Net Financials
Net Financials Net financials Net financials for 9M 2016 are DKKm 9M 2016 9M 2015 Change Net gains on Novo Nordisk shares* -3.7 3.9 -7.6 DKK -10.5m, which is DKK 14.1m lower Dividends received from Novo Nordisk shares 0.7 0.7 0.1 than 9M 2015 Total Novo Nordisk share related items -3.0 4.6 -7.5 Curr
Slide 17: Employee development
Employee development Number of employees increased by 9.9% to 2,790 FTE end of September 2016 Growth came primarily in low cost countries • Increase of 227 FTE (24.7%) compared to end of September 2015 Number of employees in western countries increased 24 FTE (1.5%) Share of employees in low cost co
Slide 18: Balance sheet
Balance sheet Assets Equity and liabilities DKKm 2016 2015 DKKm 2016 2015 Intangible assets 21.7 29.5 Share capital 250.0 250.0 Tangible assets 409.6 406.9 Treasury shares -7.5 -7.5 Deferred tax 28.4 33.7 Retained earnings 509.2 418.5 Other financial assets 28.7 28.2 Other reserves 6.5 4.6 Total non
Slide 19: Cash flows
Cash flows Cash flow Cash flow from operating activities is DKKm 9M 2016 9M 2015 Change DKK 234m, which is DKK 5m lower than Net profit for the period 143.5 144.3 -0.8 Reversal of non-cash items 176.1 160.1 16.0 9M 2015 due to additional interim tax Net interest and taxes paid -38.8 -20.3 -18.4 paym
Slide 20: Outlook
Outlook 2016 Previous guidance 5-8% in constant currencies 5-8% in constant currencies Revenue Around 0.1pp lower Around 0.1pp lower growth in reported currencies in reported currencies 10-11% in constant currencies 10-11% in constant currencies Operating Around 0.5pp higher Around 0.5pp higher marg
Slide 21: Closing remarks
Closing remarks • Solid financial results in line with expectations • Strong growth in non-Novo Nordisk revenue • Revenue from Novo Nordisk declines but fully mitigated by other customer groups • Operating profit in line with expectations • Solid backlog development • Maintained guidance of 5-8% rev
Slide 22: Investor contact information
Investor contact information Upcoming events November 30, 2016: Danske Banks Copenhagen Winter Seminar January 11, 2017: SEB Nordic Seminar, Copenhagen January 25, 2017: Financial statement for the full year 2016 Investor contact NNIT A/S Østmarken 3A 2860 Søborg Denmark Jesper Wagener +45 3075 5392