Nnit A/s · OMXCOP:NNIT
Nnit A/s — Q1 2024 Earnings Presentation
31 slides from Nnit A/s's earnings presentation, May 7, 2024
Slide 1: First Quarter Results 2024
First Quarter Results 2024 May 07 2024 1
Slide 2: Agenda
Agenda Q1 2024 highlights incl. regional performance Q1 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: The strategy "New Beginning" is on track
The strategy “New Beginning” is on track SOLID STRATEGIC PROGRESS GROWING THE BUSINESS IN A SIMPLIFICATION OF THE ACROSS THE BOARD CHALLENGING ENVIRONMENT BACKBONE OF NNIT 07.05.24 | NNIT | Q1 2024 RESULTS | INVESTOR PRESENTATION 3
Slide 4: First quarter results as planned. Full-year outlook maintained
First quarter results ended on an overall level as planned. Full-year outlook maintained Revenue Organic growth Operating profit Operating profit margin DKKm % excl. special items, DKKm excl. special items, % 463.4 8.0% 23.9 5.2% (12.2% growth vs LY) (11.3% Q1 23) (DKK 20m Q1 23) (4.8% Q1 23) 07.05.
Slide 5: Region Europe: Solid growth. Profitability to gradually pick up
Region Europe Solid growth. Profitability to gradually pick up Q1 2024 Financial highlights Key highlights REVENUE DKKm 126.4 OVERALL REVENUE PROFITABILITY (12.9% vs Q1 23) • Solid start to the year despite • Organic growth was mainly • Margin dilution compared with ORGANIC GROWTH 12.2 % macroeconom
Slide 6: Region US: Slower start to the year. Outlook is promising
Region US Slower start to the year. Outlook is promising Q1 2024 Financial highlights Key business highlights REVENUE DKKm 92.9 OVERALL REVENUE PROFITABILITY (-6.2% vs Q1 23) • Two out of three business areas • Decline in organic growth is a • Region US has managed to ORGANIC GROWTH -5.5 % delivered
Slide 7: Region Asia: Weak performance. Plan to regain profitability
Region Asia Weak performance. Plan to regain profitability Q1 2024 Financial highlights Key business highlights REVENUE DKKm 31.9 OVERALL REVENUE PROFITABILITY (-16.1% vs Q1 23) • Weak performance has led to • Organic growth negatively • Margin directly impacted by ORGANIC GROWTH -12.1 % further mit
Slide 8: Region Denmark: Strong start to the year
Region Denmark Strong start to the year Q1 2024 Financial highlights Key business highlights REVENUE DKKm 212.3 OVERALL REVENUE PROFITABILITY (29.4% vs Q1 23) • Continued strong momentum • Strong organic growth of 18.0% • Flat margin development ORGANIC GROWTH 18.0 % with all business areas includin
Slide 9: Agenda
Agenda Q1 2024 highlights incl. regional performance Q1 2024 group financial performance & outlook Closing remarks and Q&A 07.05.24 | NNIT | Q1 2024 RESULTS | INVESTOR PRESENTATION 9
Slide 10: Financial performance in line with plan
Financial performance in line with plan Q1 2024 Financial highlights Key business highlights REVENUE DKKm 464.3 OVERALL REVENUE PROFITABILITY (12.2% vs Q1 23) • Scattered performance across • Organic growth driven by • Earnings and profitability grew ORGANIC GROWTH 8.0 % regions, however, performanc
Slide 11: Stepwise improving the business to drive profitable growth
Stepwise improving the business to drive profitable growth IMPLEMENTING NEW IMPROVING THE RELOCATING SYSTEMS OPERATING MODEL OFFICES > These efforts are key levers to positively improve the profitability and to deliver on both the short-term and 2026 ambitions 07.05.24 | NNIT | Q1 2024 RESULTS | INV
Slide 12: Full-year 2024 financial outlook maintained
Full-year 2024 financial outlook maintained ~10% 8-9% GROUP OPERATING ORGANIC REVENUE GROWTH PROFIT MARGIN EXCL. SPECIAL ITEMS 07.05.24 | NNIT | Q1 2024 RESULTS | INVESTOR PRESENTATION 12
Slide 13: Agenda
Agenda Q1 2024 highlights incl. regional performance Q1 2024 group financial performance & outlook Closing remarks and Q&A 07.05.24 | NNIT | Q1 2024 RESULTS | INVESTOR PRESENTATION 13
Slide 14: Closing remarks
Closing remarks SOLID STRATEGIC PROGRESS Q1 2024 PERFORMANCE IN LINE FY 2024 OUTLOOK ACROSS THE BOARD PLAN ON AN OVERALL LEVEL MAINTAINED 07.05.24 | NNIT | Q1 2024 RESULTS | INVESTOR PRESENTATION 14
Slide 15: Q&A
Q&A 07.05.24 | NNIT | Q1 2024 RESULTS | INVESTOR PRESENTATION 15
Slide 16: Contact information
Contact information Carsten Ringius CFO carr@nnit.com 07.05.24 | NNIT | Q1 2024 RESULTS | INVESTOR PRESENTATION 16
Slide 17: Appendix
APPENDIX 07.05.24 | NNIT | Q1 2024 RESULTS | INVESTOR PRESENTATION
Slide 18: 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 19: 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 20: Financial aspirations towards 2026
Financial aspirations towards 2026 ~10% ~10-13% CAGR YEARLY AVERAGE GROUP OPERATING ORGANIC REVENUE GROWTH PROFIT MARGIN BEFORE SPECIAL ITEMS 07.05.24 NNIT | Q1 2024 RESULTS | INVESTOR PRESENTATION 20
Slide 21: 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 22: 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 23: 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 24: 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 25: 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 26: Group P&L
Group P&L NNIT A/S Quarterly performance FY performance DKKm Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 FY23 FY22 Revenue 463 438 453 424 413 1,728 1,500 Production cost 338 330 329 321 302 1,283 1,092 Gross profit 126 108 124 103 111 445 408 Gross margin 27.1% 24.6% 27.3% 24.3% 26.8% 25.8% 27.2% Regio
Slide 27: Region Europe P&L
Region Europe P&L Region Europe Quarterly performance FY performance DKKm Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 FY23 FY22 Revenue 126 109 125 119 112 465 468 Production cost 97 65 88 93 84 330 364 Gross profit 29 44 38 26 28 135 103 Gross margin 23.1% 40.4% 30.1% 21.8% 24.7% 29.1% 22.0% Regional o
Slide 28: Region US P&L
Region US P&L Region US Quarterly performance FY performance DKKm Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 FY23 FY22 Revenue 93 91 94 103 99 387 311 Production cost 57 61 58 66 68 252 225 Gross profit 35 30 36 37 31 135 86 Gross margin 38.2% 33.1% 38.5% 36.3% 31.4% 34.8% 27.7% Regional overhead cost
Slide 29: Region Asia P&L
Region Asia P&L Region Asia Quarterly performance FY performance DKKm Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 FY23 FY22 Revenue 32 32 37 36 38 144 157 Production cost 28 31 33 35 36 135 134 Gross profit 3 2 4 1 2 9 22 Gross margin 11.0% 5.5% 11.2% 2.8% 5.1% 6.2% 14.0% Regional overhead cost 5 3 3 4
Slide 30: Region Denmark P&L
Region Denmark P&L Region DK Quarterly performance FY performance DKKm Q1 2024 Q4 2023 Q3 2023 Q2 2023 Q1 2023 FY23 FY22 Revenue 212 206 196 166 164 732 564 Production cost 155 174 150 127 114 566 369 Gross profit 58 32 46 39 50 166 195 Gross margin 27.1% 15.5% 23.3% 23.3% 30.4% 22.7% 34.6% Regional
Slide 31: | NNIT | Q1 2024 RESULTS | INVESTOR PRESENTATION
07.05.24 | NNIT | Q1 2024 RESULTS | INVESTOR PRESENTATION 31