Slide 1: NNIT first six months 2016
NNIT first six months 2016 August 16, 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 six 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 six months of 2016 at a glance
First six months of 2016 at a glance Revenue Operating profit Operating profit margin DKK 1.321m DKK 126m 9.6% +6.2% +10.6% +0.4pp +6.3% organic* +5.8% organic* +0.0pp organic* Net profits Order backlog Free cash flow DKK 93m DKK 2,522m DKK 99m -1.3% +7.8% +DKK 57m *Organic is growth in constant cur
Slide 6: Q2 2016 at a glance
Q2 2016 at a glance Revenue Operating profit Operating profit margin DKK 659m DKK 57m 8.6% +4.7% +11.0% +0.5pp +5.0% organic* +3.2% organic* -0.1pp organic* Net profits Order backlog addition Free cash flow DKK 41m DKK 247m DKK -33m +15.7% +22.2% DKK -39m *Organic is growth in constant currencies us
Slide 7: Major wins
Major wins Contract Segment Client Amount Length (DKK million) (years) Outsourcing agreement Enterprise Pandora Medium-three-digit 5 (Mentioned in Q1 reporting) (CA 6/2016, 29 April) Data center capacity Finance Danske Bank Medium-three-digit 10 (Mentioned in Q1 reporting) (CA 7/2016, 3 May) Outsour
Slide 8: Backlog development
Backlog development Backlog for 2016 is DKK 2,522m, which is an increase of 7.8% compared to Q3 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 lower backlog wit
Slide 9: Interim dividends for 2016
Interim dividends for 2016 Decision Based on the strong cash flow in 6M 2016 NNIT’s Board of Directors has decided to pay out interim dividends for the financial year 2016 DKK 2.00 per share equal to DKK 48.5m Base for dividends Free cash flow 6M 2016: 99m Cash balance as of 30 June 2016: 133m Timel
Slide 10: Operational Excellence
Operational Excellence The Purpose • Ensure continued competiveness • Ensure delivery on long-term targets of at least 5% revenue growth and at least 10% operating profit margin in the 2020 strategy period Status • Diagnostics and benchmarking phase has been completed. • Based on the findings a numb
Slide 11: Operational Excellence Initiatives
Operational Excellence Initiatives Align the organization Break tech siloes and ensure optimized flows between delivery units and reduce time • spent on tasks working flows to a Plan-Design-Build- Ensure responsibilities, roles and tasks are anchored and optimize span of control Standardize • Run mo
Slide 12: Financial statement
Financial statement Organic revenue growth of 6.2% (Q2: 4.7%) DKK million Q2 2016 Q2 2015 Change 6M 2016 6M 2015 Change Revenue 658.6 629.1 4.7% 1,321.3 1,244.4 6.2% Sales and marketing costs increase by 7.1% Cost of goods sold 540.7 518.1 4.4% 1,072.9 1,012.6 5.9% (Q2: 4.2%) impacted by: Gross prof
Slide 13: Segment development
Segment development DKKm Q2 2016 Q2 2015 Change 6M 2016 6M 2015 Change Life Sciences 386.5 392.1 -1.4% 779.0 770.3 1.1% Hereof Novo Nordisk Group 300.8 307.5 -2.2% 611.5 604.1 1.2% Hereof other Life Sciences 85.7 84.6 1.3% 167.5 166.1 0.8% Enterprise 120.9 99.3 21.8% 230.5 189.7 21.5% Public 90.8 92
Slide 14: IT Operations
IT Operations DKKm Q2 2016 Q2 2015 Change 6M 2016 6M 2015 Change Revenue Novo Nordisk Group 199.8 206.4 -3.2% 412.5 403.0 2.3% Non-Novo Nordisk Group 222.5 209.4 6.2% 448.5 420.4 6.7% Total 422.3 415.9 1.6% 861.0 823.4 4.6% Costs 389.3 388.4 0.2% 775.0 755.7 2.6% Operating profit 33.0 27.4 20.3% 86.
Slide 15: IT Solutions
IT Solutions DKKm Q2 2016 Q2 2015 Change 6M 2016 6M 2015 Change Revenue Novo Nordisk Group 100.9 101.1 -0.2% 199.0 201.1 -1.0% Non-Novo Nordisk Group 135.4 112.1 20.8% 261.3 219.9 18.9% Total 236.3 213.2 10.8% 460.3 421.0 9.3% Costs 212.8 189.7 12.2% 420.0 374.5 12.2% Operating profit 23.5 23.5 0.1%
Slide 16: Currency development and hedging
Currency development and hedging After the depreciation of the CNY in Q1 vs. DKK the CNY had been relative flat compared to DKK in Q2 USD, PHP have been appreciating vs. the DKK while EUR, CZK, CHF have all been relative flat vs. DKK We continue to have currency tailwind from the CNY, CHF and PHP co
Slide 17: Net Financials
Net Financials Net financials DKKm 6M 2016 6M 2015 Change Net financials for 6M 2016 are Net gains on Novo Nordisk shares* -2.7 4.9 -7.6 DKK -7.8m, which is DKK 12.2m lower Dividends received from Novo Nordisk shares 0.5 0.7 -0.2 than 6M 2015 Total Novo Nordisk share related items -2.2 5.6 -7.8 Curr
Slide 18: Employee development
Employee development Number of employees increased by 4.1% to 2,616 FTE end of June 2016 Growth came in low cost countries • Increase of 138 FTE (15.4%) compared to end of June 2015 Number of employees in western countries declined 36 FTE (-2.2%) based on demand from customers and our offshoring str
Slide 19: Balance sheet
Balance sheet Assets Equity and liabilities DKKm 2016 2015 DKKm 2016 2015 Intangible assets 23.7 31.5 Share capital 250.0 250.0 Tangible assets 400.6 427.9 Treasury shares -7.5 -7.5 Deferred tax 39.9 21.0 Retained earnings 453.6 360.0 Other financial assets 28.4 28.3 Other reserves 5.1 6.4 Total non
Slide 20: Cash flows
Cash flows Cash flow Cash flow from operating activities is DKKm 6M 2016 6M 2015 Change DKK 179m, which is DKK 33m higher than Net profit for the period 92.5 93.8 -1.2 6M 2015 driven by a lower working capital. Reversal of non-cash items 113.0 103.8 9.2 Net interest and taxes paid -31.4 -14.0 -17.4
Slide 21: Outlook
Outlook 2016 Previous guidance 5-8% in constant currencies 5-8% in constant currencies Revenue Around 0.1pp lower Around 0.3pp lower growth in reported currencies in reported currencies 10-11% in constant currencies 10-11% in constant currencies Operating Around 0.5pp higher Around 0.6pp higher marg
Slide 22: Closing remarks
Closing remarks • Solid financial results in-line with expectations • Based on the strong cash flow NNIT will pay out interim dividend for 2016 • Strong Q2 order inflow fuelled by several major contract wins • Temporary dip in life sciences growth, but further growth expected in 2H due to recent ord
Slide 23: Investor contact information
Investor contact information Upcoming events September 8, 2016: Carnegie Small & Mid Cap Seminar, Stockholm October 26, 2016: Financial statement for the first nine months of 2016 November 30, 2016: Danske Banks Copenhagen Winter Seminar Investor contact NNIT A/S Østmarken 3A 2860 Søborg Denmark Jes