Slide 1: NNIT Interim report 6M 2015
NNIT Interim report 6M 2015 21 August 2015
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 month of 2015 Sales and backlog Financial performance Outlook for 2015 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 month of 2015 at a glance
First six month of 2015 at a glance Constant Reported vs. 6M 2014 vs. 6M 2014 currencies currencies (constant curr.) (reported curr.) Revenue DKK 1,234m DKK 1,244m +8.8% +9.7% Operating profits DKK 132m DKK 114m +20.1% +3.7% Operating profit margin 10.7% 9.2% +1.0pp -0.5pp Net profits DKK 94m +10.1%
Slide 6: Sales update
Sales update Customers continue their business relation with NNIT (examples from 6M 2015) • Association of Danish Pharmacies extends operation and development of PharmaNet • Moderate three digit amount in DKK, 4 years • Existing customer in the public segment extends infrastructure agreement • Highe
Slide 7: Sales update
Sales update Helping order backlog for 2015 and 2016-2017 • New orders for delivery in 2015 of DKK 423 million in 6M 2015 Delivery in current year Order Start of backlog Backlog DKK million year in year at 6M 2014 1,803 324 2,127 2015 1,916 424 2,340 Growth 6.2% 31.0% 10.0% Order intake for current
Slide 8: Backlog development
Backlog development Backlog for 2015 increased 10.0% y-o-y to DKK 2,340m driven by: • Order backlog intake for delivery in 2015 is DKK 423 million in 6M 2015 • New contracts in public and life sciences segments • Extension and expansion of infrastructure and support agreements with Novo Nordisk • Ex
Slide 9: Financial statement first six month
Financial statement first six month Pct/pp Pct/pp 6M 2015 6M 2015 DKK million 6M 2014* Change Change (reported) (constant*) (reported) (constant) Revenue 1,244.4 1,234.4 1,134.6 9.7% 8.8% Cost of goods sold 1,012.6 987.1 923.9 9.6% 6.8% Gross profit 231.7 247.3 210.6 10.0% 17.4% Gross profit margin
Slide 10: Segment development
Segment development Revenue Revenue Revenue Pct Change Pct Change DKKm 6M 2015 6M 2015 6M 2014* (reported) (constant) (reported) (constant*) Life Sciences 770.3 760.6 721.0 6.8% 5.5% Hereof Novo Nordisk Group 604.1 597.7 585.0 3.3% 2.2% Hereof other Life Sciences 166.1 162.9 136.0 22.1% 19.7% Public
Slide 11: Costs
Costs Total costs DKK 1,130m (10.3%) Currency headwinds influence costs of NNIT’s offshore delivery centers • 6M 2015 impact DKK 28m In constant currencies costs increased 7.6% • Increased employee costs caused by revenue growth • IPO launch program • Expanded office facilities • Strengthened intern
Slide 12: Efficiency measures to further strengthen competitiveness and to mitigate currency impact
Efficiency measures to further strengthen competitiveness and to mitigate currency impact We have identified numerous efficiency areas and have started to execute • Increased offshoring • Offshoring of administrative staff • Higher utilization of employees • Continued focus on automation • Process a
Slide 13: IT Operations
IT Operations Pct/pp Pct/pp 6M 2015 6M 2015 6M 2014* Change Change (reported) (constant*) (reported) (constant*) DKK million Revenue Novo Nordisk Group 403.0 397.7 401.0 0.5% -0.8% Non-Novo Nordisk Group 420.4 419.6 393.3 6.9% 6.7% Total 823.4 817.4 794.3 3.7% 2.9% Costs 755.7 735.5 703.3 7.4% 4.6%
Slide 14: IT Solutions
IT Solutions * Constant currencies measured using average exchange rates in first 6M of 2014 Revenue growth of 22.6% in constant currencies and 23.7% in reported currency • Partly influenced by 6M 2014 events (reversal of revenue and compensation for a terminated contract) • Growth net of these two
Slide 15: Net Financials
Net Financials Net financials DKKm 6M 2015 Net financials for 6M 2015 are DKK 4.5m Net gains on Novo Nordisk shares* 4.9 primarily due to: Dividends received from Novo Nordisk shares 0.7 • Net gains on Novo Nordisk shares held for Total Novo Nordisk share related items 5.6 management long-term incen
Slide 16: Currency development and hedging
Currency development and hedging Exchange rates Avg. Rates Spot rates 6M y-o-y Currencies that NNIT is exposed vs. DKK 6M 2015 3M 2015 30 Jun '15 31 Mar '15 change to are still significant higher CHF 706.19 705.44 716.45 713.92 15.4% compared to same period last CNY 107.51 107.22 107.55 111.97 22.2%
Slide 17: Investments
Investments • Investments level in first six month of 2015 was DKK 93.5m which is DKK 36.8m higher than first six months of 2014 • Hardware investments on outsourcing agreements with major clients • Unchanged expectations to investments for normal operation for full-year 2015 • NNIT is still investi
Slide 18: Employee development
Employee development Number of employees increased by 11% to 2,514 FTE end of June 2015 Largest growth came in low cost countries • Increase of 179 FTE (25.0%) compared to end of June 2014 Number of employees in Denmark grew 85 FTE (5.7%) based on demand from customers Share of employees in low cost
Slide 19: Balance sheet
Balance sheet Assets Equity and liabilities DKKm 6M 2015 6M 2014 DKKm 6M 2015 6M 2014 Intangible assets 31.5 39.3 Share capital 250.0 1.0 Tangible assets 427.9 365.3 Other reserves 6.5 2.4 Deferred tax 21.0 0.0 Retained earnings 360.0 707.2 Other financial assets 28.3 21.9 Treasury shares -7.5 0.0 T
Slide 20: Cash flows
Cash flows Cash flow DKKm 6M 2015 6M 2014 Change Net cash flows are negative due to payment Net profit for the period 93.8 85.2 8.6 of dividends and purchase of treasury shares Reversal of non-cash items 103.8 82.8 21.0 of DKK 178m. Net interest and taxes paid -14.0 -16.4 2.4 Changes in working capi
Slide 21: Outlook
Outlook Current guidance Previous guidance Revenue 6-8% at constant currencies 5-8% at constant currencies growth Around 0.7pp higher as reported Around 0.8pp higher as reported Operating Around 11% at constant currencies Around 11% at constant currencies margin Around 1.3pp lower as reported Around
Slide 22: Closing remarks
Closing remarks • Solid overall development in-line with plans • Revenue growth in first 6 months in-line with expectations • Backlog development continue to support year-end targets • Year-end expectations for revenue narrowed and profit margin maintained • Currency headwinds continues to impact of
Slide 23: Investor contact information
Investor contact information Upcoming events 3 September 2015: Presentation at Carnegie Small & Mid Cap seminar, Stockholm 17 November 2015: Interim report for first nine months of 2015 24 November 2015: Presentation at ABG Sundal IT seminar, Copenhagen 3 December 2015: Presentation at Danske Bank M