Nnit A/s · OMXCOP:NNIT
Nnit A/s — ABGSC Small & Mid Cap Seminar 2018
15 slides from Nnit A/s's conference presentation, 2018
Slide 1: ABGSC Small & Mid Cap Seminar 2018
ABGSC Small & Mid Cap Seminar 2018
Slide 2: Great Track Record of Profitable Growth while Diversifying Our Revenue Base
Great Track Record of Profitable Growth while Diversifying Our Revenue Base New Data center Revenue Mix Development Since 2005 Novo Nordisk vs. non-Novo Nordisk IPO DKKm Non-Novo Nordisk Revenue Novo Nordisk Revenue 10th consecutive Operating Margin (%) New year with double Data 2,892 digit growth c
Slide 3: Leveraging Our Compliance DNA Drives Diversification
Leveraging Our Compliance DNA Drives Diversification Our Core Leveraging Our Compliance DNA Life Public Finance Enterprise Sciences DKK 1,612m DKK 346m DKK 245m DKK 689m (56%) (12%) (8%) (24%) See Note (1) DKK 1,031m (36%) IT Solutions Services: Advisory services, business solutions and application
Slide 4: ..the history
..the history Operating profit margin Cash to earnings Revenue growth 107.6% 11.0% 10.6% 99.2% 87.3% 8.7% 9.3% 7.9% 11.2% 72.9% 87,1% 10.3% 9.6% 41,9% 6.3% 4.6% -41.8% 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Adjusted for DC2 Adjusted for SCALES ROIC Pay out ratio S
Slide 5: 2020 Strategy
2020 Strategy Long term targets: Win Profitable Market Share • Revenue growth of at least 5% • Operating profit margin of at least 10% Denmark International Win new customers Win new customers Support clients of Danish Increase share of existing origin international Increase share of existing custom
Slide 6: Leading Market Share in Danish IT Services Market
Leading Market Share in Danish IT Services Market 2016 Data Danish IT Services Market Development vs. NNIT Danish IT Services Market (2016 Revenue (1)) DKKm +x% 2013-2016 CAGR -6% 5,000 4,713 +4% Danish IT service market 2016 4,455 4,500 Growth 2013-2016 was 1.8% CAGR 4,000 Market size: 36.2 bn
Slide 7: Market situation for our segments
Market situation for our segments Market Market CAGR: NNIT est. market NNIT Comments: size size share revenue 2017E: 2021E: growth: Uncertainty 2.5bn ~50% See further opportunities for larger outsourcing contracts, following Danish 13.0bn 15.1bn 3.3% 5.2% clients internationally as well as Scales gr
Slide 8: …things we do
…things we do Digital transformation Security Security Advisory Advisory Services Services Implementation Implementation Full stack Application Application provider Life sciences Application Outsourcing, outsourcing outsourcing ...the preferred IT GxP Operations, Infrastructure Infrastructure out
Slide 9: International life sciences strategy
International life sciences strategy Historic growth has been organic. In future acceleration through M&A could be an option if right candidate is identified. Pharma tier 1 Pharma tier 2 Big pharma ~3,000-10,000 employees Regulatory driven focused Regulatory driven focused offerings offerings Tower
Slide 10: Profit and Loss 2017
Profit and Loss 2017 DKK million 2017 2016 Change Acquisition Litigation (reported currencies) Revenue 2,891.9 2,764.6 4.6% 3.0% -0.9% Cost of goods sold 2,362.5 2,223.0 6.3% 3.3% 0.0% Gross profit 529.4 541.6 -2.3% 1.7% -4.8% Gross profit margin 18.3% 19.6% -1.3pp -0.2pp -0.7pp Sales and marketing
Slide 11: Free cash flow 2017
Free cash flow 2017 DKKm 200 189 188 150 98 100 50 0 181 -50 -100 -90 2017 Data SCALES Underlying 2016 center 2017 investment 11
Slide 12: Revenue per customer group 2017
Revenue per customer group 2017 DKKm Pct Change 2017 2016 Litigation Acquisition (reported currencies) (reported) Novo Nordisk Group 1,233.8 1,238.4 -0.4% n.a. 0pp Other Life Sciences 378.5 358.6 5.6% n.a. 1.6pp Enterprise 689.2 545.6 26.3% n.a. 12.9pp Public 345.9 385.3 -10.2% -6.8pp 1.8pp Finance
Slide 13: Backlog
Backlog +4.0% DKKm (+86) 3,000 2,673 2,710 2,500 2,419 2,127 2,213 2,000 1,566 1,556 1,378 +17.8% 1,500 1,157 1,362 (+206) 1,000 500 970 1,041 1,117 1,144 -12.3% 851 (-120) 0 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Non-Novo Nordisk Novo Nordisk 13
Slide 14: Backlog year 2+3
Backlog year 2+3 +13.6% DKKm (+278) 3,000 2,824 2,712 2,500 2,324 2,046 2,129 2,000 1,471 1,595 -3.9% 1,235 (-49) 1,500 1,284 1,337 1,000 1,241 1,229 +43.0% 500 1,089 (+327) 762 792 0 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Non-Novo Nordisk Novo Nordisk 14
Slide 15: Outlook
Outlook 2018 Long-term targets Revenue Constant currencies: 4 - 7% At least 5% growth Reported currencies: 0.4pp lower The expectations for growth in revenue is based on the restated IFRS 15 revenue of DKK 2,851m. Operating Constant currencies: 10 – 10.5% At least 10% margin Reported currencies: 0.4