Slide 1: First nine months 2019
First nine months 2019
Slide 2: The NNIT Presenting Team
The NNIT Presenting Team PER OVE KOGUT CARSTEN KROGSGAARD KLAUS HOSBOND SKOVRUP THOMSEN Chief Executive Officer Chief Financial Officer Head of Investor Relations 2
Slide 3: Agenda
Agenda Highlights for Q3 01 and the first nine months of 2019 02 Financial performance 03 Balance sheet and cash flow 04 Outlook for 2019 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: Q3 2019 at a glance
Q3 2019 at a glance Revenue Operating profit* Operating profit margin* DKK 763m DKK 69m 9.0% +4.1% +3.9% +0.0pp +0.4pp F/X -0.4pp F/X -0.1pp F/X Net profit Order backlog addition Free cash flow DKK 50m DKK 195m DKK -3m +3.1% +19% DKK -61m *Before restructuring cost 5
Slide 6: 9M 2019 at a glance
9M 2019 at a glance Revenue Operating profit* Operating profit margin* DKK 2,257m DKK 158m 7.0% +3.3% -21% -2.2pp +0.5pp F/X -1.1pp F/X -0.1pp F/X Net profit Order backlog for 2018 Free cash flow DKK 125m DKK 2,923m DKK -70m -17% +2.7% DKK -186m *Before restructuring cost 6
Slide 7: Major wins
Major wins Amount Length Contract Segment Client (DKK million) (years) Operations and development of ERP and CRM Enterprise Norlys Around DKK 50m 5 systems Q3 Int. Life Existing Expansion of consultancy support DKK 25-50m 3 2019 Sciences customer Existing Cloud server transition project Public Singl
Slide 8: Backlog development, current year
Backlog development, current year Beginning of quarter +2.7% DKKm (+77) 3,000 2,846 2,923 2,682 2,728 36.1% 2,487 395 2,517 538 2,500 368 488 (+143) 2,213 344 2,171 410 2,000 288 319 -12.5% 1,067 934 1,024 904 (-133) 944 871 1,500 851 821 1,000 +4.9% 1,290 1,383 1,336 1,451 (+67) 1,074 1,199 1,235 5
Slide 9: Financial statement Q3 and 9M 2019
Financial statement Q3 and 9M 2019 DKK million Q3 2019 Q3 2018 Change 9M 2019 9M 2018 Change Revenue 763.2 733.2 4.1% 2,256.9 2,184.3 3.3% Cost of goods sold 636.6 611.7 4.1% 1,925.7 1,808.4 6.5% Gross profit 126.7 121.5 4.2% 331.1 375.9 -11.9% Gross profit margin 16.6% 16.6% 0pp 14.7% 17.2% -2.5pp
Slide 10: Financial statement Q3 and 9M 2019
Financial statement Q3 and 9M 2019 Revenue increase of 4.1% (9M: +3.3%) in Q3 2019 was the first steps taken in Denmark in September and driven by growth from international life sciences (by 95%), thereby reversing the negative trend from Q1 and Q2 finance (by 20%), Danish life sciences (by 12%) and
Slide 11: Life Sciences
Life Sciences DKKm Q3 2019 Q3 2018 Change 9M 2019 9M 2018 Change Novo Nordisk Group 223.4 266.6 -16.2% 717.5 801.1 -10.4% Life sciences international 94.6 48.5 95.3% 262.2 138.6 89.1% Life sciences Denmark 57.4 51.2 12.2% 166.8 162.0 2.9% Revenue 375.4 366.3 2.5% 1,146.4 1,101.7 4.1% Cost of goods s
Slide 12: Life sciences
Life sciences Revenue increased by 2.5% (9M: 4.1%) in Q3 2019: Gross profit margin decreased 2.5pp to 20.9% (9M: 20.7%) in Q3 2019: • Novo Nordisk Group declined 16% (9M: 10%) in Q3 2019 compared to the same period last year due to a • The decrease was due to lower margins on service level sudden de
Slide 13: Private & Public
Private & Public DKKm Q3 2019 Q3 2018 Change 9M 2019 9M 2018 Change Enterprise 211.6 198.3 6.7% 599.4 591.7 1.3% Public 98.0 103.3 -5.2% 283.5 306.6 -7.5% Finance 78.2 65.4 19.6% 227.6 184.2 23.5% Revenue 387.8 367.0 5.7% 1,110.5 1,082.5 2.6% Cost of goods sold 339.7 331.3 2.6% 1,016.7 993.2 2.4% Gr
Slide 14: Private & Public
Private & Public Revenue increased by 5.7% (9M: +2.6%) in Q3 2019: Gross profit margin increased 2.7pp to 12.4% (9M: 8.5%) in Q3 2019: • Enterprise clients increased by 6.7% (9M: 1.3%) in Q3 2019 driven by GN Hearing and one-off impacts from • Positively impacted by the cost restructuring plan in tw
Slide 15: Currency development and hedging
Currency development and hedging CNY/DKK CNY PHP/DKK PHP CZK/DKK CZK USD and CHF have appreciated versus DKK in Q3 2018, whereas 1.02 0.14 0.300 1.00 0.13 0.295 0.98 0.12 0.290 the rest are at similar levels as last 0.96 0.11 0.285 year. 0.94 0.10 0.280 0.92 0.09 0.275 In Q3 2019, operating profit m
Slide 16: Net Financials
Net Financials Net financials 9M 2019 9M 2018 Change Net financials for 9M 2019 were DKK DKKm 11.9m, which was an improvement of DKK Currency hedge gains 16.3 4.6 11.6 15.6m compared to 9M 2018. Currency gains (losses) 5.3 1.0 4.4 Total currency related items 21.6 5.6 16.0 This was due to: Interest
Slide 17: Employee development
Employee development +2.1% Number of employees increased by 2.1% FTEs (+66) to 3,221 FTE at the end of Q3 2019. This 3,500 increase was primarily driven by 3,214 3,267 3,222 3,221 3,101 3,122 3,155 Philippines (61 FTEs) in-line with the long- 3,000 term offshoring strategy and the inclusion of Valia
Slide 18: Balance sheet
Balance sheet Assets 30 Sep 30 Sep Equity and liabilities 30 Sep 30 Sep DKKm 2019 2018 DKKm 2019 2018 Intangible assets 1 525.3 213.0 Share capital 250.0 250.0 Tangible assets 606.7 583.8 Treasury shares -4.1 -4.6 Lease assets 333.9 344.2 Retained earnings 838.6 737.4 Contract assets 80.5 120.7 Othe
Slide 19: Cash flows
Cash flows Cash flow Cash flow from operating activities was DKK 141m in 9M 9M 2019 9M 2018 Change DKKm 2019, which was DKK 66m below 9M 2018 due to lower Net profit for the period 124.5 150.8 -26.3 net profit and changes in working capital. Primarily due Reversal of non-cash items 256.2 249.0 7.2 t
Slide 20: Outlook
Outlook 2019 Previous guidance Revenue Low single-digit Low single-digit growth 8-9% excl. 8-9% excl. restructuring restructuring Operating Constant currencies: costs of DKK Constant currencies: costs of DKK profit margin 15-25m 15-25m Reported currencies: 0.2pp lower Reported currencies: 0.2pp lowe
Slide 21: Closing remarks
Closing remarks • A revenue growth of 4.1% and an operating profit margin of 9.0% before restructuring cost in Q3 2019 • Strong growth within life sciences international (+95%), life sciences Denmark (+12%) and finance (+20%) customer groups in Q3 2019, while the Novo Nordisk Group declined by 16% •
Slide 22: Investor contact information
Investor contact information Upcoming events Investor contact December 4, 2019: • Danske Bank Vinter Seminar January 29, 2020 • Full year report for 2019 March 5, 2020 • Interim report for the first three months of 2019 KLAUS HOSBOND SKOVRUP Head of Investor Relations May 6, 2020 • Interim report fo